Finding for Malaysia Best Home loan, Housing Loan, Mortgage in Johor Bahru? Just bought a property in Johor Bahru and looking for the best Home loan, Housing Loan, Mortgage among all the banks? Feel confusing? Difficult to decide which Bank loan package suit you most due to the banks’ increasingly competitive interest rates and aggressive marketing?
Malaysia Types of Home loan, Housing Loan, Mortgage:
Standard Variable Rate Loan:
The most common type of loan offered by the banks in Malaysia, whereby the interest rate is pegged to the Base Lending Rate (“BLR”). If the BLR increases, the applicable interest rate will naturally increase accordingly and vice versa. The interest rate varies throughout the term of the loan.
Fixed Rate Loan
A fixed rate loan (ie Islamic loan offered by banks by as well as loans offered by AIA and ING) is best for people who are risk adverse and want the security of knowing their repayments. It does not matter if the interest rate increases.
All-in-one Account
An all-in-one account allows you to have a savings or current account (or even a fixed deposit account in some circumstance), where no interest is paid to such account but instead the credit balance thereof will set off your loan principal before the interest on the loan is calculated. Therefore less interest is charged to your loan. This account will enable you to cut the interest costs substantially or even totally if you have a substantial credit balance in your saving or current account.
Overdraft
An overdraft facility is the most flexible loan offered by the banks. There is no fixed monthly repayments. You may repay prepay and redraw on the account from time to time so long as the outstanding balance is within the principal limit of the overdraft facility.
How to choose Malaysia Best Home loan, Housing Loan, Mortgage?
The home loan market in Malaysia has become increasingly competitive with hundreds of products available with a wide range of features, thereby causing much confusion amongst the purchasers. There is no single bank will offer the best rates for everyone. In fact, different banks will offer different interest rates. It depends on factors like loan amount, flexi or non-flexi loan package, terms of loan, property purchase or refinance, types of features, MRTAs are included and even whether the property is completed or otherwise. Even the same bank will also have many loan packages.
What do lenders look for in loan applications?
Payment history
This is the number one issue on any creditor’s list. A pattern of slow, late, or missed payments will knock down an applicant’s credit score. Your ability to pay is huge, determined in large part by your income and other competing debts.
Percentage of available credit you’re using
In the underwriter’s eyes, pushing your credit limits is a cardinal sin. It’s better to have two accounts at half-limit levels than one maxed out. Some say 30 percent is the ideal debt-to-limit ratio on a revolving account, so consider juggling three cards if that’s what it takes.
Length of credit history
You can’t change your age. But you can get started on the path to creditworthiness at a young age by opening a Visa account and faithfully paying off the balance each month. Never borrow money needlessly, but if it makes all-around sense, consider a car loan. A two-year track record of on-time payments will greatly raise your standing among potential mortgage lenders.
“Mix” of credit types
It’s also preferable to have a variety of credit types such as mortgages, credit cards and car loans. A diversified mix is characteristic of someone with a long credit history.
Proof of income
A steady, reliable and stable source of income is absolutely necessary. Job stability is a factor that a mortgage lender will look for, and two years at your current job helps, but this also is not an absolute requirement. If you change jobs but stay in the same line of work, you should not have a problem — especially if the job change is an advancement or increase in income.
Collateral
Depending on the type of financing, lenders and funding providers may appraise the value of your collateral in different ways and assets go a long way to offset lenders’ fear of risk. Money lenders are far more interested in the resale value of your property, a property leveraged at 80 percent is less worrisome than one at 95 percent.
Don’t have the time to look at every loan product in the market?
The loan market is extremely competitive with hundreds of products available, each with different features, fees and interest rates. If you don’t have the time to look at every loan product in the market. You may look experienced mortgage consultants to help you analyse the available loan products and provide you with a list of options that best suit you. As a first home buyer it’s a good idea to arrange for an in principal approval before you go house hunting.
Why use Mortgage Broker instead of a bank/ financial institution?
The simple answer is that mortgage broker offer a wider choice. A bank/ financial institution can only offer a limited range of its own loans. What’s more, they are paid the same commission no matter which loan or bank/ financial institution you choose so you can be sure that they really have your interests at heart. They don’t charge you for this service because they are paid by the banks/ financial institutions.
Contact Mortgage Broker now:
Ms Tan +6012 7076139
Ms Teh +6013 3506727