Experts share tips to prospective homebuyers
By Yoganeswari Vellusamy
SECURING a bank loan for your dream home could have a 90% success rate, if one uses the right strategy.
Gary Chua recently spoke at the StarProperty.my 2017 forum held at Putrajaya. The forum received an overwhelming response with visitors looking to gain an insight into the current property market. It was sponsored by Putrajaya Homes Sdn Bhd.
Smart Financing Co. chief executive officer Gary Chua said those who are looking to buy a house can take note of a few strategic steps in order to increase their chances of securing a housing mortgage.
“The first key towards securing a loan is by obtaining a high bank application score. This step involves choosing the right bank and filling up a bank loan form with the right profile and demographic information.
“A high score determines a higher chance of securing a loan, so one should not opt to deceive the bank with false information,” Chua said.
The next step, according to him, involves income recognition, which can be categorised into two aspects, self-employed or as an employed staff.
“Being an employed staff gives you the privilege of having a fixed income of providing a three months payslip to the bank.
“Due to the fluctuating nature of income sources for the self-employed, banks may recognise one’s income from Borang B or from the last six months of company bank statements.
“The third step is to manage your credit score. In order to secure a loan, one must always build valuable CCRIS score with experience. Avoid late payments and do not ever overuse your credit card,” Chua said.
Chua said on top of credit scoring, the banks may still reject one’s application with a set of credit issues, including missed payment for more than three times in the last six months, missed the current monthly payment and so on.
“Next step revolves around credit issues, which often stand in the way of a mortgage loan approval. The banks look at your past performance to gauge your future performance. If you had a poor repayment track record, chances are your loan will be rejected.
“Through CCRIS, your entire payment pattern will be reviewed. Hence, you need to always maintain an exceptional record in order to secure a loan approved by the bank,” Chua explained.
The fifth step is to avoid a bad status with CCRIS. This includes allowing your existing loans to go into reschedule, restructure or AKPK status.
“If you have a bad status in CCRIS, the chances are your loan will not be approved.
“Avoiding any legal battle with the bank is the best solution as you may be sued or declared bankrupt by the bank which will be registered in your CCRIS,” Chua added.
In short, always maintain a good track record with the bank.
The sixth step involves a tight discipline with one’s cheque facility.
“If you have two or more bounced cheques in the last 12 months, say goodbye to your mortgage application,” Chua said.
The final stage involves the Debt Service Ratio (DSR). The DSR is calculated based on the total of one’s monthly debt obligations.
Chua said there are two key elements in improving one’s DSR ratio. Make the bank recognise one’s best and highest income is key as it ensures the DSR ratio gets lower and manage the monthly commitments or debts.
Another seasoned speaker was Teoh Eng Poh, who shared his insights on the promising development of the southern outskirts of Kuala Lumpur, such as Putrajaya, and how the Transit-Oriented Developments (TOD) is key to igniting a soon-to-be investor haven.
Putrajaya Homes Sdn Bhd general manager of marketing and commercial division Sabariah Ramli said the company is offering project that gives the homebuyers the option of the 10:90 scheme.
The 10:90 scheme involves 3% down payment and another 7% paid via instalment within a period of 12 months upon signing of the SPA. The interest free balance of 90% from the selling price is to be paid upon full completion of the property.
For more information, visit www.pjh.com.my or call +603-8888 6633.
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