Monday, August 10, 2009

House Hunting Part II: Finding The Right Home Loan

Few friends keep on asking me whether we have found our dream house, or whether we finally choose Amethyst Type B (the house that we adore, as portrayed here) as our home sweet home. Well, the answer is "almost" for the 1st question. Currently, we have narrowed our option to the final two; both in Putra Heights, both are under Sime properties :) However, after deep thinking and considered few important factors, it's a "No" to the 2nd question. It is too expensive for our budget. Buying that as our property means that engaging ourselves in 30 years of debt with very limited budget that might exclude the vacations...or even shopping spree. Don't think I can survive that :P For us, its wiser if we buy a house which is within the budget, and at the same time having some extra cash for us to spend on necessary things and as a back up for emergency cases. Maybe the extra cash can goes to the renovation, if necessary too...

From the house hunting activities that we did for the past 3-4 weeks, not only I have learned more on the properties and the agents, but I discover more on the home loans as well. I never knew what MRTA was, and I don't know what are the differences between conventional home loans and Islamic home loans (pathetic huh? huhuhu...), but now, I know. I can even explain to others. Ohhhh, I like! ;)

Honestly, I learned on the housing loan, not through readings, but through walk-in at the banks itself which I think is the best way. Why? Because here, you can get to talk to your personal banker or the customer sales executives or personal financial manager
personally (take note that different banks addressed their representatives by different titles). Just ask, and they will explain to you from A to Z. They even do the calculations for you, for example what is the maximum amount of loans you can get? or how much is the monthly installment with that amount of loans? In addition, they are also willing to advice you on certain things that we are unsure of. Let me share with you some beneficial info that I learned during our recent visits to Standard Chartered bank, Maybank, RHB bank, Public Bank, and EON bank recently (inilah untungnya duduk closer to Taipan...all banks are situated in one place..hihi).

Tips on finding the right housing loans:
  1. Visit as many banks as you can to get the best deal. You can make comparison in terms of the loans as well as services offered by each bank.
  2. Important information that you need to know are the interest rates (including the BLR), the maximum repayment years, how much loans that you are qualified? and can you afford the monthly payment with such amount?
  3. Ensure the loan fees (e.g legal fees, stamp duty, etc.) are reasonable. Values should never exceed 5% of the loan amount.
  4. Enquire on the loan's insurance, which is the MRTA.
  5. How long will it takes to process the loan application before it can be approved?
  6. What are the necessary documents that we need in order to submit our loan application?
  7. Knows what are the differece between conventional and islamic home loans
  8. Find out whether legal fees are included in the package offered by the bank/not.

The definitions that you need to understand:

  • BLR - Base Lending Rate. The interest rate is made of two components; BLR and the spread (margin). The BLR is a changing rate, depends on the current market.
  • MRTA -Mortgage Reducing Term Assurance. It reduce term life assurance, specially designed to protect a loan borrower against death or TPD (total permanent disability) due to natural or accidental causes. The insurance will pay the outstanding balance of the repayment to the bank
  • Islamic Home Loan vs Conventional Home Loan - Under conventional financing, your outstanding loan consists of principal + interest charged on you. The interest is actually the bank's cost in obtaining the funds. Whereas, the Islamic financing works on the concept of buying and selling where the bank purchases the property and subsequently sells it to you above the purchase price.
Necessary documents needed to apply a housing loan:
  • copy of IC
  • latest 3 months of payslip
  • current EPF statement
  • latest EA form
  • latest BE form
  • Purchase Receipt/Booking receipt/Letter of purchase
  • Copy of title/SPA (Sales & Purchase Agreement)

With these information, we are now another step ahead in owning our own place to stay (yippie!!). We are soooo looking forward for the next stage! Wish us luck k :)


my.mastura said...

nad, aku hari tu guna CIMB Islamic...dpt aaa DVD player free heheheh...skang ni BLR tgh rendah.sit's best kalau beli rumah skang..

btw, kalau ko nak contact person CIMB Islamic tu, let me know ok..? happy to help u..

Nadine said...

wah wah wah..menarik. tula, EON bank pun offer LCD 32" tau. hihi, sbb itula dgn jayanya saya dan suami mahu membeli rumah skang. sbb BLR rendah :D

ye ke, thanks! nnti aku calling2 bila sampai masanya ye. :)

my.mastura said...

peerrgghh..LCD 32"? baik amik yg tu..hehehehe

Nadine said...

hahahaha...cpt2 ke EON bank. promo la pulak :p

my.mastura said...

ishkk..dh terlambat aa...aku dh sign dh pon ngan CIMB Islamic tu...dh dpt pon DVD player nyer..hehehe

Nadine said...

ic..hihi, takpela. ade jugak something kn? aku pun plan nk ambil islamic loan nnti :)

Anonymous said...

aku amik loan company, tak dpt ape2 pun.. :(


Nadine said...

-f-, (fiza ke??)

dapat...dapat rumah..hihi! kidding..:D
I'm sure ur company loan punya package is very attractive ones...special utk workers. kan? tu dh untung dh tu :)

:: NieSha :: said...

wahh..nadia dh dpt rumah yg diidamkan yer?
kami pon tgh mencari rumah ni....
nanti bleh la nadia jd consultant wani ;)

Nadine said...

yg plg diidamkan, is way beyond my reality. kalau jd millionaire blehla..hihihi.

yg diidamkan sesuai dgn budget, itu almost jumpa :) to be exact, ade 2 dlm final list. cuma nk tunggu final decision yg mana satu je. harap2 jadi la kali ni..

wah, consultant tu. kalau radio network consultant, tu mmg keja saya. kalau consultant on buying property tu, saya budak br blajar. Tp definitely nadia akan assist wani ape2 yg nadia tau, atau share ape2 info ;)

Anonymous said...

a'ah.. pandai pun..

boleh la.. interest dah fixed..
boleh save dalam 120-125k la..

dah pilih ke? hope semuanya berjalan seperti yg dirancang..

-f lagi- :)

Nadine said...

hihi, kata bestfriend...ecehhh :P

ha, tgk RM125K. berbaloi kot dr all those gifts. beshnyerrrr.

dh finalize 2. tinggal nk pilih the one. amin, thanks dear! hope for the best. mintak2 jadila. penat weh survey2 :)

:) :)

HalfBlood Princess said...

all those terms izu asek dgr last tkt dgr je la nadia..hihihi..btw, it's really good info..:)

wah, tak lme lg je la ni kn?? xsbr nyer nk tgk umah nadia...mst best!all the best k..:)

Nadine said...

hihi, mesti dh boring dgr kn izu. takpela, dh lepas..dh ade rumah. best2.

harap2 jadi jika tiada aral melintang, dptla tunaikan this year resolution to own a house :)

ala izu...malu kot nk kasi izu tgk. ("bakal")rumah kitaorg ni apela sangat kalau nk banding ngan rumah izu yg cantik dan luas itu..huhu.

INDA said...

i totally agree, mmg kena survey few banks, then tgk yg bg offer menarik. kitorg surveyed rhb, maybank, public bank, bank rakyat n bank islam. The best offer was from bank islam (siap tawar pembayaran bil elektrik untuk rumah, for 30 years :) )and the best part was, we didn't even have to go to the bank, sume settle kat office husband je :)
anyway, all the best...

Nadine said...

menarik...sangat untung kamu. maybe sbb hubby inda org besar sepang kot, dpt special treatment gitueew..hihi ;)

thanks dear! :)

Anonymous said...

takpe, beli kecik2 (tapi takde la kecik sangat) cukup utk 3-4 orang...nanti beli pulak yang besar untuk 7-8 orang ;) yang kecik boleh lease kan...

* orang yang tak sabar tunggu atmosfera siap :p

Nadine said...


awak, nnti pindah rumah baru jangan lupa jemput kita utk housewarming yea. sure cantik rumah awak...tgh website atmosfera tu sgt menarik!