How to finance buying a flat

If there was a competition to find out the most popular company in Malaysia, mortgage loans could definitely compete. Almost any institution that has cash, i.e. banks, or has access to someone else’s cash, i.e. insurance companies, wants in on the home loan game. This is a fact that can be easily confirmed with a quick glance at the local newspapers. You will see pages after pages of mortgage offers.

There are many lenders in the market, and a first-time apartment buyer should talk to as many people as possible. The reason for this is to find the best mortgage deals available. In addition to the newspaper, you can find good mortgage loan offers in the yellow pages, in the real estate directory, and by asking real estate lawyers, real estate agents and עורך דין רכישת דירה and people who have recently bought an apartment.

For many years, the most well-known mortgage lenders were local Malaysian banks such as May bank, Public Bank and Hong Leong Bank. In recent years, insurance companies have jumped into the mortgage business. Even if insurance companies are not primarily in the mortgage business, they have managed to bundle a mortgage plan with their insurance product. In some cases, first-time home buyers can only access insurance funds through mortgage bankers and brokers.

Mortgage bankers are individuals and organizations

 That lend their own and other people’s funds to real estate buyers. Once the mortgage is made, the mortgage banker usually sells the loan to the investor. A mortgage broker, unlike a mortgage banker, does not have the capital to lend, but lends money that belongs to others. He earns money from fees, charges and points. In addition, a mortgage broker can also service loans.

As in any country, financing the purchase of an apartment in Malaysia can be a daunting task. A typical mortgage term for the average Malaysian is 15 to 30 years. It is best for a new home buyer to get advice from the right people before signing the mortgage agreement on the dotted line.

Owning a home is definitely a dream come true for many (and a nightmare for some). However, most new home buyers find the financing process to be quite a tedious process. There are a few things to keep in mind to make sure your purchase is successful and hassle-free.

Getting pre-qualified

Having a pre-approval means that based on your financial capacity, the bank confirms that you are qualified to take out a home loan of a certain amount. Why is this important? Imagine spending so much time buying your dream house. You decided on a particular property and signed the option, only to discover that the bank is unwilling to extend the home loan for the correct amount. If you are unable to complete the transaction, you may lose between 1% and 5% of your cash deposit. Getting pre-approved allows the buyer to understand the price range of the property that they can afford.


Take the maximum pre-approved loan?

Let’s say you’re pre-approved for a $1 million home loan. Should you use the maximum confirmed limit as a guide when sourcing your trades? Discuss your financial commitment with your partner or advisor to determine an exact price range you can work with. There are many different factors like degree studies, monthly investment etc. Don’t blindly take the maximum limit if you are already or will be heavily leveraged. This can cause unpleasant problems for you in the future.

Read the fine print

When the contract is presented to you, your mortgage broker or bank officer will briefly review the contract with you {they may not}. However, they do not take the housing loan. You are. Take it upon yourself to read the fine print carefully. Some salespeople may want to sell you a home loan and not tell you about a certain feature that may not benefit you in the long run. Take the time to read and fully understand its implications. After signing the contract, there is no point in complaining, but of course you can always refinance this home loan

Choose a law firm

Choose a lawyer whose fee structure you are comfortable with. Usually, most lawyers choose a flat fee, but some prefer to use a percentage of your home loan. Talk to several attorneys; understand their fee structure before fully committing. Alternatively, you can ask your עורך דין מכירת דירה or bank officer for a recommendation. They should be able to recommend some really good lawyers if they have been in the business for a long time.

Pay your monthly installments now

Don’t treat your mortgage creditor the same way you treat your business creditors.