Budget 2012

Dear Everyone, 

It's me again, due to overwhelming request to grasp more on third house financing facility with maximum loan to value 70%, I've done some survey and happy to share with you all some scenarios on 3rd house loan ;- 

For your information, our beloved banks (I regards it as my ATM) will only refer to existing home loan. Bank will not base on Sales and Purchase agreement or ownership of the property.



Example 1 :


Mr A has 3 existing home loan with few banks.

Ms B has only 1 existing home loan with bank.

Now, Mr A would like to purchase a new house with Ms B. Sales and Purchase agreement under Mr. A and Ms B.



Scenario 1:

The new home loan under Mr. A name. The home loan entitlement will be up to margin 70% only. Because, this is Mr A’s 4th home loan.



Scenario 2:

New home loan under Ms B name only. The home loan entitlement will be up to margin 90%. Because, this is Ms B’s 2nd home loan.



Scenario 3 :

New home loan under Mr A and Ms B name. The home loan entitlement will be up to margin 70%. Because, this is Mr A’s 4th home loan.



Example 2:

Mr A has 2 existing home loans with bank. Recently, he sold one of the houses, Sales and Purchase agreement signed. CCRIS still appear this home loan.

Today, Mr A purchased a new house.

If he applied a home loan for the new house, what is the entitlement?

Answer: Up to 70%.  Because, it is consider 3rd home loan. His existing home loan still appears in CCRIS report.

If the home loan no longer appears in CCRIS, then his entitlement for home loan will be 90%.



Example 3:

Mr. A don’t have any property under his name. Basically, he didn’t own any house. But, he has 2 home loans co-joining with his sister and brother. He joined as a co-borrower because both of his brother and sister do not have sufficient income at that moment.

Now, he interested to purchase first house under his name and apply a home loan. What is his entitlement?

Answer :  Up to 70%. Since, the new home loan will be 3rd home loan.



Example 4:

Mr A has 10 houses around Malaysia. All houses are fully paid or buying with cash. Now, he is purchasing a new house and would like to apply for a home loan. What is his entitlement?

Answer: Up to 90%.

  

CCRIS is a Bank Negara sponsored system that supports Credit Bureau's function. Credit Bureau primary function is to collect credit information on borrowers from financial institutions and supplies the information back to financial institutions.

Happy reading !