Those who don’t buy a lot of property may not know this, but Bank Negara has implemented a new rule saying that if you buy your 3rd residential property, you can only get 70% financing. Watch the video embedded below for more explanation.

Let me explain how you might be able avoid this.

In Malaysia, let’s say you buy your first house at RM100,000. For the first house, you can get a 90% loan from the bank. Then you buy your second house at RM200,000. Even though you still have your loan for the first house, you can still get a 90% loan from the bank. This means you only have to pay the 10% down payment or RM200,000 in this case.

If you want to buy a third house or more, you can only get a maximum loan of 70%. This is the rule.

I already bought three houses before I got the fourth one, joint-name with my wife – this is before the new rule. So, we, kind of, used up our entire quota. I went to our bank and asked the marketing official, “I only have 60% left to pay for this property, and 50% for the other property. Can I get a 90% loan for the third one?” The answer is “No.” As long as you have two outstanding loans, even if only by 10%, you will not be able to get a 90% loan on the third house. The only way around this and get 90% is to settle one of your loans, then show the Loan Settlement Letter to the bank that is going to finance your new house purchase.

Some banks are quite stringent. Like for my case, all of the houses are of joint ownership between my wife and me. So, I go to our bank and asked, “Hey, the S&P agreement has my name and my wife’s name on it. Can I refinance this loan with only my name so that my wife isn’t associated with the loan?” This means I refinance the first two houses with only my name so that my wife can get the third house for herself and get a 90% loan. In this case, the S&P will have both me and my wife, but only one of us will be the borrower. You’ve got to be careful with choosing the bank because not all banks can do this, although most banks can.

What if instead of husband and wife, it is brother and sister? You have to check with the bank, as in the case of brother and sister only some banks can accommodate this. I think OCBC can, but you have to check with them.

This arrangement will be based on trust. For example, the sister sells her portion to the brother, and the brother is now the sole owner of the house. But, if the sister paid for half of the property, she would also want to be named as an owner, right? You can always check with your banker on how and if it’s possible to do this.

Let’s say you buy your first house, and then you buy your second house, and want to get a third house and still get a 90% loan. There is, in fact, another solution. There is a body called the MBSB or Malaysia Building Society Berhad, which can give you a loan above 80% even if it’s your third property. I think they can give up to 85% or something, if not 90%. The disadvantage here is that their interest is higher than the banks, normally like BLR-1% or something. You can check with MBSB.

Another trick is to find commercial properties as the rule only applies to residential properties. If you can find a commercial property with a better yield, you can switch your portfolio – sell your residential property, and get a commercial property. Commercial properties don’t have the same restrictions.

For Premium Webinar Members, you can watch the full session here.

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Personal finance author and trainer

    219 replies to "How to Avoid 70% Financing Rule on the Third Residential Property Purchase"

    • Sheryl

      Hi KC,

      I have 2 houses and currently selling the the 1st house, which the buyer just signed the SPA. Now I would like to buy another new house, can I get the 90% loan while the 1st house still in progress?

      • KCLau

        Assuming that you currently have two residential loans, and you in the progress of selling one of it, technically you still have two loans under your name, until the process of selling is completed.
        It is worth a try to inform the banks that your first loan will be repaid soon by the buyer. They might not give you 90% LTV until your first housing loan is settled officially.

        • Unaver

          Hi KC, I’m trying to get a 3rd house, however only applicable for 70% loan, since both 1st and 2nd house loan under my name. was thinking to have the loan under my wife name however she doesn’t have a source of income for loan purposes. Is there’s any bank that could cater at least 85% of loan or any other way that I could look into? Thanks for your advice on this.

          • KCLau

            Banks definitely want to ensure the borrower has stable income before approving any loan.
            In your case, you will have to get your wife to have an income.

    • Maximus

      I have one house joint name with my brother (loan under my brother) and another house with loan under my name.

      Can I get another house under my name and loan and still get 90%?

      • KCLau

        It counts only when you have loan on your name. In your case, just one loan. So the new loan will count as the 2nd loan and entitle for 90% LTV.

    • Alvin

      Want to ask. Under my own name got one house loan and under my wife name also got one house loan. Now we plan to buy another house with joint name. is that consider 3rd house loan?

      • Ian Tai

        I believe the answer is nope. This is because you own one loan on one house and the other loan was under your wife’s name. Each of you have one loan under your name. So, the ‘third’ property is actually your second one if you take the loan yourself. But, it would be the second one to both of you if you and your wife decide to take a joint loan for it.

    • KH Cheah

      Hi KC,

      I’m in the midst of selling off my property (my only one) and will be acquiring another once the sales of my property went thru. My question is, can I quality for 90% for the new purchase or will be lesser?

      • KCLau

        You will get 90% LTV, as it will be your only residential mortgage.

    • Jason

      Hi KC, can I use my refinancing fund from 1st House to pay my 3rd house downpayment? TQ

    • WC

      Me and my wife, each of us already have 2 properties under our own name, in other words, 90% loan quota is used up.
      We both plan to sell one of the properties and buy another one with joint ownership and loan. So are we still eligible to the 90% loan? or it is considered 3rd properties?

      • KCLau

        When you are only left with one loan, then the 2nd one can be considered for 90% LTV.
        In your situation, after you sell off one property, you will only have one loan left. Then you buy another property, you might get 90% LTV again.

    • haffiz

      Hi KC,
      Im Hafiz

      1st house- my name 90% loan
      2nd house- my name 90% loan

      i wanna to buy 3rd house and join loan with my spouse. Can get 90% loan for this 3rd house?

      • KCLau

        Since you already have 2 housing loans on your name, the 3rd one is also your 3rd loan even though it is joint-loan. So you can’t get >70% LTV.

    • Mei mei

      Hi Kc,
      Husband 1st prop- Joint loan with his parents
      Husband 2nd prop- Loan His name only
      Me the wife 1st prop- Loan my name only (Applied when working previously)

      Can we purchase a new prop using my name as loan borrower with husband as guarantor. To get 90% LTV as my 2nd house (Im a housewife but with rental income. Loan ongoing)

      • KCLau

        It could work. But DSR is the issue.
        Talk to some bankers to get advice. Good luck to you.

    • Apple

      Hello KC,
      Not quite understanding how it work on the home loan, good thing I came across your article…
      I have 2 property, 1 joined name with my mother & brother and another 1 is a shop office which joined name with my sis-in-law.

      Previously during the application loan for the shop-office quite number of bank rejected my loan if only my name in the list and reason given is due to too many outstanding loan… example 1st house and car loan.
      Can I get 90% home loan with the 2 mention property which still not yet finish settlement?
      Kindly advice. Thank you.

      • KCLau

        the LTV 70% only apply to 3rd residential loan.
        In your case, you only have 1 residential loan and 1 commercial property loan.
        So by right, you are qualify to get another loan for 90% LTV. But it also subject to your Debt Service Ratio (DSR).
        Banks will look at your commitment and decide whether to lend you up to 90%.

      • Abdul malek

        I have this issue. First house loan is under my name but ownership is under my mum, uncle and me. Then i bought a second house with 90 pct loan. Now im planning to buy a third house. The issue is my first is still under master strata, and im planning to refinance it and change the ownership of the house but seems difficult since it still under master strata. The developer has some issues to break down the strata. Is there any good bank can assist me from a to z for this issue, so i can settle my first and second house from refinancing funds and buy the third house with 90 pct loan

        • KCLau

          You will have to find a banks that can work with you. Contact all of them and wish you find one that can be of help.

    • Eng Loon

      Hi KC,

      The rules is applied to 3rd home loan or the ownership of the house is counted?
      I have 2 houses the ownership is under myself and my wife, while 1 more is under me and my brother.
      This consider 3rd house too?

      • KCLau

        Only count the loan, not the house ownership.

    • Liyu

      Hello KC,

      wanna check with u whether the loan to company for financing for residential property shall not be more than 60% LTV is it still valid?

    • Maniyan Rama

      Hi KC,

      On 2014 I bought an apartment joined name with my sister (But I’m the main payer).
      On 2015 my sister bought a house joined with my name (But my sister is the main payer).
      Next year I plan to buy a property under my name and I planned to rent the apartment bought in 2014.
      Can you advise me on this?


      • KCLau

        When you have 2 residential housing loan, with you name on it, and it appears on your CCRIS report, the 3rd loan will be subjected to 70% LTV.

    • jennhwee

      Hi KC,
      Check with you. i have two properties still in loan and my wife have one. We decide to buy the another property but as what i know is the third property only allow to loan 70% max. Can i put my wife name as borrower and get the 90% loan? if her salary cant meet the requirement i can be the guarantor ?

      • KCLau

        You can ask the bankers.

    • Victor

      Hi KC,
      I have just purchased a condo a few weeks back. Initially with both me and my wife’s name. However, since she has loans for 2 properties already (joint name with me and joint name with her brother) the Maybank loan officer asked us to change the SPA to have only my name. This is to allow approval of 90% loan according to him. Otherwise it will be up to 70% max. Already signed the letter of offer, facility agreement, etc.
      I have read some forums which says that actually the loan can be under my name but the property under both our names, which is called third party loan.
      Now, we would like to add in my wife’s name as the co owner. What kind of cost should i expect to pay? The property is 700K and loan is about 560K. May I know what is your advise on this?

      • KCLau

        Not all banks would do the “third party loan”. But some will.
        In the case of adding your wife as co-owner, that’s handled by your SPA lawyer. You need to ask them the process and the cost. For your bank’s side, if they don’t do “third party loan”, you will need to find other financier.

    • Lan

      Hi KC,
      I have sold off my 1st house and now applying to buy another house. Will I get the stamp duty exemption?

    • Hafiz

      Hi KC,
      I owned my 1st house via joint loan with my wife 5 years ago. Now, I am planning to get a 2nd house just under my name. Let’s say that my first house installment is 2k per month. If i want to calculate my DSR, my commitment for the first house loan is 2k per month or just half of that?

      • KCLau

        Usually, it is considered 50% only from your joint-loan.

    • Ging

      HI KC,

      If I already got existing two housing loan, but when the bank checked my ccris, only one appeared and they approved for more than 70% in the offer letter, shud I still sign and proceed with it? Thanks.

      • KCLau

        I think it is not unlawful.

    • Kaiyen

      Hi KC,

      I have a service apartment which the title is a commercial title.. however the loan is a residential loan. If I were to borrow from the bank for a residential property that I intend to buy, will they see this as commercial or residential? Thank you.

      • KCLau

        It is considered residential according to the loan.

    • William

      Hi KC,

      I have 2 commercial property with 85% loan, if want to purchase another residential, will get 90% loan ?

      • KCLau

        It only concern the residential loan. So your commercial property loan will not be considered in the quota.

        • Amutha

          Hi KC,
          Myself and husband have 2 house loans. Now we applyloan for the 3rd property. We expecting 80% loan. We have tenancy agreement for 1 house. Is it possible we can get 85% due to one property is under tenancy?

          • KCLau

            If both of you already have two housing loan, you won’t get more than 70% LTV for the 3 housing loan.

    • Faizul

      Hi KC,

      1st house – Wife’s loan (property’s name under wife)
      2nd house – Joint loan husband+ wife (property’s name under husband)

      if wife wants to buy a new property and get the 90% loan entitlement, can husband transfer/refinance the 2nd house under his loan only?

      • KCLau

        hi Faizul, yes you can do that. It is called third party loan. But not all bank will do Third Party loan for borrowers. So you will need to shop around to find one.

      • Junghan

        His scenario doesn’t fit as third party loan. I’m in the same situation.
        1st house: 400K joint loan, joint ownership.
        2nd house: 600K husband loan, joint ownership.
        For our next house, I’m planning to refinance the 1st house loan under wife’s name so husband can borrow another 90% loan. Hope it works.

    • Eric

      Hi KC, am selling my apartment but buyer are getting government loan and stated it would takes 6 + 1 months to process. getting the government loan application also start from signing the SnP. May I know what is the timeline to complete the whole cycle?

      • KCLau

        Better check with an SPA lawyer who had handled such loan before to understand the timeline.

    • joe

      Hi KC, Do you know if a Malaysian bank would take a case like me, where I am a malysian and I am buying a studio of a service residence condo in JB of valued below 1m and apply for loan with my wife who is a Singaporean? Tkx for the advice

    • She

      Hi. I already hv I property. If I buy my 2nd n 3rd property at the same time, u think I can get 90% for both?

    • pilotHans

      Hi KCLau,

      here’s another situation that needs some advice . Currently I’ve 2properties :
      1st property : 90% – Only MyName (Rented out)
      2nd property : 100% finance – Only MyName (Under con)
      3rd property : Any chance to get 90%. Add with spouse/join name. if non spouse is possible as well? need special agreement/clause ?

      p/s all residential property loan, please advice.

      • KCLau

        For the 3rd property, it can be joint-name. But to get 90%, the loan has to be a third-party loan. Some banks can provide that, including AIA too.
        Normally, third-party loan (without your name) can only be done for direct family members and sibling.

    • Jimmie

      Hi KC… thank you for taking your time to reply us.
      I have a question as well,
      I would like to refinance properties under a dormant sdn bhd.
      I owned 50% of the company. The share were given to me by my parents.
      The properties held under the company are fully paid and free of encumbrance.
      I do not have any loan with bank and healthy CCRISS.
      May i know what is the best option to execute this type of cash out?

      • KCLau

        The company is dormant – meaning don’t run any operation anymore right? I am not sure if it is a IHC in this case.
        Some banks do provide loan to IHC by assessing the directors as guarantors.
        You can try that route by getting loan through company.

        If not, then the property will have to change ownership – and will incur stamp duty and legal fee.

    • Alex

      Hi KC,

      1st property (wife loan)
      2nd property (wife+husband loan)

      If I would like to transfer the 2nd property to wife loan only. Will she be entitled for 90% or 70% for this transfer of loan?

      • KCLau

        90% since it is only the 2nd property loan for her.

    • Au Yong Di Yuong

      In my hand got one property, if i sell off the property and gain a capital gains in my bank account
      can i use the money in my account to loan?

      • KCLau

        Some banks do consider your net worth to give out loan.

    • WV

      KC, I have a same question which you have replied before. I have the same situation, where I have two properties on bank loan currently – one landed house and one serviced apartment. In your reply, I think you mentioned that 3rd house would still qualify for 90% loan subject to DSR since the services apartment loan can be considered as commercial loan. I approached to one banker which I used regularly, but he advised that I could only get 70% max for 3rd house. I am checking with another bank as well, they have not get back so far, kinda slow..

      Do you or anyone here knows any bank that would usually considered serviced apartment as commercial loan?

      • KCLau

        It depends on how the “serviced apartment” is defined. If not mistaken, when the property is referred as residential, it will take up your quota for 90% LTV.
        Check your loan agreement for the serviced apartment. Is it considered “commercial property loan”, or “residential property loan”?

    • Teng JF

      Hi KC,
      I will like to know whether qualify get 90% loan for new house.

      1)First House under my name , loan and sold out
      2)Second house together with Wife name, loan and sold out
      3)Third house together with wife name, active loan


      • KCLau

        Since you sold the previous property, the 3rd property is your only loan. So shall qualify for 90% LTV.

    • namzaron

      Hi KC,
      appreciate for your thought on my situation as per below:
      1) first property (residential) – under my current company housing loan (Not visible under CTOS report but included in salary statement monthly deduction)
      2) second property (residential) – loan with bank
      Can I qualify for 3rd residential property with 90% loan amount?

      • KCLau

        I am not sure how the banks will treat this though.

    • Mrs Lim

      Good day KC.

      Just want to check with you, currently me and my husband both joint name for his hometown house. Which his parents transferred the name to ours but no more loans. Then we bought a condo loan under his name and property both name. Now, can I know how many more houses can my husband loan under his name? For 90%.

      • KCLau

        Since your husband Mr. Lim only has one residential loan, he can still apply for 90% LTV for the 2nd residential property.

    • FS

      Hi KC,

      very impressed you are answering all the Question here.

      i have a question. i Owned a constructing house with my wife (not working) which the loan is only under my name, loan 90% and still paying for the interest now. now we are planning to buy 2 properties at same time. is it possible for me to get the loan for 90% for both 2nd and 3rd properties if i sign the loan offer at same time.

      once again thanks for your time.

      • KCLau

        This is gaming the banks. It is a loophole that they didn’t fix yet. Openly, I can’t encourage people to do that.

        • FS

          Thanks for your answer. it’s help a lot

    • Kenny

      Hi KC,

      Hope you’re able to advise on my situation below:

      My GF (foreigner) and I are looking at buying a house together (RM1mil property in Selangor) and was wondering if the below arrangement will enable us to get a property less than RM2mil as required by foreigner ownership restrictions:

      – both of us apply for the loan; either as joint-borrower or GF as guarantor (my DSR will not allow for a loan of this amount)
      – only my name as the sole-owner of the property (will have a standalone agreement + witness to stake for GF’s ownership in property)

      Your thoughts / other alternatives please?


      • KCLau

        This case is addressed as “Third Party Loan” by the banks since the loan involves someone who is not the property owner. Not all banks are willing to do that. You better check with banks as their policy also changes over time.

    • Suhaimi

      Hi KC..

      Really impressed on your effort to reply us.
      I would like to ask:

      1. 1st house – (my name, loan with bank)
      2. 2nd house – (my name, loan with company(not a bank) which I’ve been working for – housing loan scheme for staff)

      So the third property, am I still eligible for the 90% loan with bank?

      • KCLau

        I am not sure about this situation. But I don’t think banks will see that you have a loan with another company which is non-bank.

    • Monesh Pillai

      HELLO MR KC ,thank you for the very informative post, i have one unit of apartment (comercial title) given 90 percent loan, 2nd was a service apartment(commercial title ), 85 percent loan (but dev gave 15 percent discount) on SnP price , so dint have to pay anythg upfront, now thinking of another landed property ,how much loan do you think i will be able to get ? Thank you very much!

      • KCLau

        In your case, since you only have one residential loan, the landed property will still qualify for 90% LTV provided your DSR allows it.

    • Sham

      Hi Lau..thank you for taking your time to reply us.
      I have a question as well, bought my 1st property at 136K 10 years ago and planning to sell anytime soon
      2 property purchased joint (husband & wife) 5 yrs ago…will I be eligible to take up 90% loan if im selling off the 1st property?

      • KCLau

        You are entitled to 90% LTV for first two residential loan. In your case, just two properties involved so you will be able to get 90% as long as your DSR allows it.

    • Mandy

      Hi, KC Lau

      Would like to check with you on below scenario:
      1) I am currently 1 of the owner (with another 2 siblings) of my parents house. The house free from any loan on it. And title of the house is under 3 names. Is this consider 1st house even did’nt have any loan on this house?
      2) Thereafter, i had purchase a house with SPA & Loan joint name with my wife. We managed to get 90% loan for this house.
      3) However, my parents plan to sell the house as i mentioned on Item 1 and move to a totally new property that so far under consideration to purchase. For the new property, my siblings try to pursuade me for loan matter under my name and another siblings name. This new property is consider as 2nd property or 3 third property ( if the loan for the new property had been approved but the house at Item 1 still not manage to sell out)?
      4) I am worried once my name on the loan for the new property, this will affect on my future plan ( 2nd house with my wife & loan on new vehicle).


      • KCLau

        Hi Mandy,

        1. Banks only consider how many loan you have, not the number of houses. In your case, you don’t have a loan on this property. So not considered.

        2. Yes. You shall get 90% when your DSR qualifies for that.

        3. This will be 2nd loan – still entitled for 90% LTV.

        4. It certainly affect your future loan. So it is best not to used up your loan credibility for non-productive purposes.

        • Mandy

          Thanks. KCLau.

    • Azfar

      In my situation.
      1) 2013 bought a house by auction with 90% loan under my name
      2) 2013 bought another house from developer with 90% loan under joint name (me & wife)
      3) 2017 bought a vacant residential land. Since i thought it was the 3rd property, so i might only get 70% loan but to my surprise the banker said vacant land does not consider as residential title. So i get 85% loan. The maximum percentage a bankbcan give for land loan.

      Do you ever encounter such situation?
      And let say in the future i sell 1 of my house. Retain 1 house and the vacant land. So if i buy a new one. Supposely i should get 90% loan right?

      • KCLau

        Hi Azfar, as the banker said, land is not considered residential property.

    • Ken

      Hi KC,

      Appreciate if i can have your advise on this:

      1st property: loan fully paid off, remortgage and cash out certain amount. me + brother (joint name)
      2nd property: me + brother (joint name)
      3rd property: am i entitled for 90% loan?

      • KCLau

        If you have two residential loans (with your name on it), the 3rd will be subjected to 70% LTV.

    • Jane

      Hi KC,

      Appreciate if i can have your advise on this:
      I am planning to get my 3rd property at 330k (which is an existing property, i.e not under-con), that would mean the maximum i can get would be 230k.
      In order to find way around the 70% restriction, can i state in S&P selling price as 360k in order to get a higher loan amount which is at 250k? What would be the potential issue that i need to take note?

      • KCLau

        You will need a good lawyer who can facilitate this.

    • Jennifer

      I need your advice pls:-

      1st property – Loan (wife), SnP (wife name)
      2nd property – Loan (husband and wife), SnP (husband and wife)

      What if now we want to buy 3rd property? can the loan under husband’s name but SnP under both husband and wife’s name? Husband still can get 90% loan?

      • KCLau

        Hi Jennifer, it is possible. But you must find banks that would do “3rd-party loan”. Only a few banks can do that. I heard that AIA mortgage can also.

    • sazale

      Hi KC,

      Would like to check if you can recommend any bank that possibly can offer 90% for 3rd house except MSB?

    • Terence

      Hi Mr Lau,

      First loan for service apartment..
      Second loan for residential apartment…
      Can I still get the 90% loan for 3 properties?

      Can just get loan under my brother name n snp only have my name without my brother name?


      • KCLau

        If your service apartment is under commercial title, then that one is commercial loan.
        For “3rd party loan” like you mentioned – I don’t think banks would allow only your brother taking the loan and he is not even the joint-owner of the property.

    • Kelvin

      Hi KC,

      I would like to get your advise on the housing loan on following condition
      1. 1st House (Property-my name, Loan-my name)
      2. 2nd House (Property-my name & wife name, Loan-No loan applied)
      3. 3rd House (Property-wife name, Loan-wife name, is a Government loan)
      4. House (Property-sister name, Loan-my name & sister name)
      5. 4th House (consideration now)
      In order this 4th house to obtain 90% loan, how should the property and loan be register under my name or wife name.
      Thank you

      • KCLau

        Your wife only has one loan. So she can still get 90% LTV for the latest purchase, if her DSR allows.

    • Zalan


      I’d like to have your view on my situation.

      I have two houses under my name and loan, and I’m in the process of purchasing a third one. Obviously I will have to pay a 70% downpayment. I wanted to sell one of my current house so that I can obtain 90% loan for the one I wanted to purchase, but I don’t have the time to do so.

      If I make a 70% loan now, and two years later I sell one of my current house, will I be able to refinance my 70% loan to become a 90% loan and get back my 20%? and if this is possible, would the strategy be advisable? Thank you.

      • KCLau

        Technically, it should work.

    • tarrik

      Hi KC,
      Thank you for the article. Hope to get advise on this.
      I have two loans,
      loan 1: residential
      loan 2: commercial
      Now am applying for loan #3 for a residential. It’s a 2nd loan for residential, will I get 90% or 70% margin u think ?
      thanks !

      • KCLau

        90%, subjected to your DSR qualification.

    • ong

      Hi KC,

      i would like to get your advise on the house rental income tax matter.

      we owe a house which is under both husband and wife name and currently collecting rental income. but the loan is only under my husband name.

      i am aware that we are allowed to offset some expenses from the rental income i.e. bank loan interest charges, quit rent, fire insurance etc

      in this case, rental income collected is divided by 2 of us when we declare our income tax. what about the loan interest charges, can we divide these expenses equally to offset our rental income. thank you

      • KCLau

        I let my accountant do this. Generally, they will divide the interest into 50-50 too.

    • kk

      Hi KC,
      Good day!

      Currently, I have two residence properties (outstanding loan with banks) and would like to buy a third one. Since I’m only eligible for a maximum loan of 70% for the third property, i’m thinking of refinance one of the properties (cash out) to pay for the third property. In this case, am i eligible for a 90% loan from the refinance?

      thank you.

      • KCLau

        At the time of application, since you only have 2 loan when you refinance, so technically still eligible for 90% LTV. It should work.

        • kk

          Thank you for your prompt reply.

    • MON

      Hi KC,
      Noted n thx.

    • MON

      Hi KCLau,
      Good day!
      I have some queries about the housing loan for 3rd property hope u can giv me some advice.My case is as below:

      1st house :my name
      Housing loan:my name

      2nd house :my name
      Housing loan: my name

      Im planning to buy my 3rd house and S&P joining name with my GF but only my GF will apply the loan ,in this case is it possible to get 90% loan from bank?

      • KCLau

        You will need to structure a 3rd party loan. Since you are not married and your GF is not related to you legally in anyway, I don’t think there is any bank out there who would agree to do a 3rd party loan.

    • Genw

      Will PTPTN study loan affect my chance of getting 90% LTV for my second property?

      Thanks KC

      • KCLau

        PTPTN is included in the DSR calculation. So it does affect how much loan you can get.

    • Jx

      Hi KC, if I have sold the first property bought with epf withdrawal. Can I have second withdrawal for a property(subsale) under my spouse name?

      • KCLau

        I think so. Better confirm with EPF.

    • CS

      Hi KC,

      I have the following loans active:

      1st Condo residential (my name only)
      2nd Shop Office commercial (myself join name with wife)

      am thinking to buy third using EPF myself, am I still eligible for 90% loan (actually I am thinking to get 80% loan only)?

      Many thanks in advanced!

      • KCLau

        Since you only have 1 residential property mortgage, shall be able to get >70% for the second residential property.

    • SJ

      Hi KC,

      I have a question as follows:

      Based on my understanding, EPF withdrawal to buy a “second” house is allowed after the “first house is sold”.

      Few years ago, my wife and I bought the first house under our names with EPF withdrawal (both of us). After that, we bought the second house without EPF withdrawal. Now, my wife plans to withdraw her EPF to buy a third house, is it possible? Before the purchase of the third house, she will transfer her ownership of the first house to me so that she will no longer own the first house. In that case, can she purchase the “third house” using EPF withdrawal? How does EPF define a “second” house?

      Appreciate your advice. Thanks.

      • KCLau

        Hi SJ, I think it shall work. But verify with EPF first since they are the authority who determines whether you are eligible for withdrawal.

    • Kim


      I have a question that I hope you can clarify.

      My bf is applying for the housing loan at the moment and the banker says that the because the loan is solely under his name, we can’t put both our names in the S&P as I am not his legal spouse.
      It will only be possible for both our names to be in the S&P if both our names are in the loan.
      Is this true?

      Thank you

      • KCLau

        Hi Kim, if your name is not in the S&P, then you are not an owner. I don’t think bank will do a 3rd party loan for someone who has no relation with the borrower.

    • Dyan

      I wanna ask..
      First loan joint loan me n husband.. property residential me n husband
      Second loan husband loan only… property land me n husband
      Third loan govt loan I want to refinance to bank. Loan only me n property residential also me.
      Can I ref my third loan n get 90%. Tq

      • KCLau

        Hi Dyan, I am not sure about government loan. I suggest that you check with the relevant authority.

    • Nina

      Very useful. Thank you KC!

    • Wai Hong

      Hi KC,

      Assuming that my brother and I would like to buy a property together, but using only his name for the mortgage loan application to avoid wasting our quota. Is it possible for us to draft a separate agreement by ourselves to state that both of us have stakes in the property? Will the agreement be effective on court?


      • KCLau

        You should do the agreement. And get witness when you sign it.

        • Wai Hong

          Hi KC,

          Thanks for the recommendation! Appreciate it.

      • Leon

        S&P can put both of you and your brother’s name will do, is it correct KC?

    • Kim

      Hi Kc

      I left a comment here last night but Im not sure why it didnt appear 🙁

      Just a question.. if my bf buys a property and the loan is in his name but the ownership is both our names, am I entitled for a 90% loan for the next property we buy with only my name in the loan? Or both our names also in the loan for the 2nd home?


      • KCLau

        I just replied you.

        • Kim

          Thank you 🙂

    • Kim

      Hi KC

      I find your article and comment section pretty helpful but I still need more clarification

      If the scenario is as below :

      1st property : Loan (Boyfriend) Property (His name and mine)

      Since the loan is under his name, will I still get 90% loan on our 2nd property? :

      2nd property : Loan (Mine) Property (both names)

      Also if the above is possible then for the 3rd property, will we not be able to get 90% if it is was a joint loan?:

      3rd property : Loan (both names) Property (both names)

      Thank you

      • KCLau

        If either of the home loan joint-applicant is having existing two home loan, then it is subjected to LTV 70%.
        In your case, 2nd property – okay 90% under your name
        3rd property, still eligible 90% since it is only the 2nd loan for both of you.

    • shawn

      hi KC.

      this is my situation.

      loan 1st house under my name.
      2nd loan me as borrower but I put my wife name in.

      question: will I be able to loan 90% of my house?

      my wife have a loan with her sister. is she considered a 2nd house or 3rd ?

      please advice….. thanks in advance.

      • KCLau

        If your name appear on both loan #1 and loan #2, the next loan will be 70% LTV.
        Your wife has name in loan #2 and another loan with sister, then the next one is also 70% LTV.


      Hi KC,

      The article and the lists of Q&A above are very useful.
      I have a query (all properties and loan under my own name):

      a) 1st property – 90% loan using flexi loan, fully paid but I have not redeemed the property from the bank yet. Currently every month I am only servicing the admin fee of RM10 for the loan. Reason is I am working overseas and have yet to engage a lawyer to start the redemption process.

      b) 2nd property – 90% loan using flexi loan. Just bought a few months ago.

      I am now considering a 3rd property. Will i qualify for a 90% loan since technically I have fully paid my loan for 1st property? It’s just that I have not redeemed the property from the bank yet?

      Thanks in advance for your kind help.

      • KCLau

        Hi Stanley, in your case it is still showing 2 residential loans. Then the 3rd loan will be subjected to 70% LTV limit.
        Technically, you need to redeem the first loan.

    • Mohd Fadzli Bin Mohd Dahlan

      Hi KC

      My scenario

      1st property – my name (currently rent it) HLBB loan
      2nd property – JV with wife loan HLBB
      3rd property – wife name loan MBSB

      Can we get 90% loan for next property ?
      One more thing agent said commercial status with HDA also considered 70% loan for me or wife. Is is true?


      • KCLau

        Since 1st property and 2nd property has your name on the loan, the next property purchase will the 3rd residential loan – 70% LTV.
        I am afraid your agent is right.

    • Mina

      Hi KC, Is there any GST or any other taxes applicable for residential?

      • KCLau

        GST is not imposed on residential property.

    • Chris

      Hi KC, my situation is like this.
      First house 90% loan

      Second house I join loan with my brother but only manage to secured 68% of loan due to my brother income not so high.

      Now, I’m thinking to buy a new house, can I get 90% loan?

      • KCLau

        As long as your name appears on 2 separate residential loan, regardless of how much LTV you get, still the 3rd one will be maximum 70%, according to the ruling.

    • Joanne

      Hi KC, below is my situation:

      1) 1st Property – Loan (Me & Husband)

      2) 2nd property – Loan (My brother & his wife) but I am the guarantor

      Do u think I can still get another property loan at 90%.

      Thank you so much.

      • KCLau

        Hi Joanne, you only have 1 housing loan in this case. So you shall have another one with 90% financing, if your DSR qualify.

        • How

          Hi KC,

          That means guarantor will not be counted? I was told by a banker, where guarantor has no different from loan borrower.

          Please correct me if i’m wrong. Thanks

    • Intan


      Dear KC

      My husband and me, plan to apply join housing loan for new house. Should next housing loan is 2nd or 3rd house?

      If currently:

      -I have housing loan for my 1st house
      -My husband have join housing loan as a 2nd applicant,the SnP under his father name.

      Thank you


      • KCLau

        Hi Intan, for you, it is 2nd house. For your husband, it is also the second property loan. Should be okay to get 90% if your combined DSR is eligible.

        • Intan

          Thank you KC ?

    • Eshvaren

      Dear KC,

      Really appreciate the sharing.
      I have a reservation pertaining to the above matter:
      At present, my wife and i own the following:
      1) Property A (My property)
      2) Property B (Wife’s Property)
      3) Property C (Joint ownership)

      Hence, if i want to qualify for 90% loan for another property, i should do A or B?

      A: Refinance Property C and exclude my name? (Suggested by you) or
      B: Execute a new S&P for Property C to remove my name from the ownership?
      (Suggested by a friend)

      Kindly advise whether option B is valid?
      i prefer option B as the cost is lesser.

      • KCLau

        If you are trying to execute Plan B – do a new SPA for Property C to remove your name from ownership, I think the complication is that when you do that, your bank that provide the loan for Property C have to agree. You better speak with your SPA lawyer and loan agreement lawyer to find out if this is possible.

    • Raj

      Hi KC,

      Just a query to you, can I purchase a house under my wife name since she is not working? Probably I can become her guarantee. However I was fully loan with 3 houses. Can I get atleast 80% loan?


    • Jolie

      Hi KC here is my situation:

      1. 1st property – from bank loan – me & my father
      2. 2nd property – from government loan – me only
      3. 3rd property – will I get 90% loan from bank? (S&P – me only)


      • KCLau

        Hi Jolie, I don’t think you qualify for 90% anymore since it is your 3rd residential mortgage.

        • KK

          How the bank know about a person is taking government loan?

          • KCLau

            Ask the specific bank. I am not sure about this.

    • mohan

      HI Sir… first property settled and ownership transfered to wife name and bought second house in March 2016 and another property just came in and im abit intrested in getting this and what will be the loan margin will i get ? will this considered as my second property ?
      2. if i want to join with my sibilings or cousins to get this property for investment plan, what is the maximum number of ppl can join the loan application?


      • KCLau

        Hi Mohan,
        1. Just look at the residential property loan you have. If you already have two mortgages (regardless of whether you are the owner or not), then the maximum LTV will be 70% only.

        2. I am not sure about the maximum joint-borrowers allowed by banks. Check with them to confirm.

    • Wendy

      Hello Mr. Lau,
      May I know when should we pay the stamp duty for Memorandum of transfer? About the same time as Sales & Purchase sign or after we settle the housing loan? The stamp duty should based on SPA or market value?

      • KCLau

        When buying from subsale property, Stamp duty for MOT need to be paid when the transaction is completed, normally within 3 months after signing SPA. The stamp duty is based on the transaction value stated in the SPA.

    • Desh

      Hi KC, I have a question.

      I have 2 properties (House) under my name. And I wanna buy joint property (House) with my wife. What is the loan percentage likely to be since I am the 3rd buyer and my wife as 1st buyer? TQ

      • KCLau

        If the 3rd property loan is under your wife’s name solely, she might be eligible for 90%

    • Jason

      Hi KC, is it worth to buy and invest in Bandar Sri Sendayan now? I heard from my friend said the project is good and have HSR in future. Thanks.

      • KCLau

        I have not done any research on Bandar Sri Sendayan. So can’t give you any constructive view.

    • Monica

      Hi.My hubby is 59yrs Malaysian working in Malaysia n has a house fully paid with rental coming in.Myself Singaporean 53yrs n working in Singapore.We want to buy a second apartment for 350000 ringgit.Can we get a loan.Pls adv.Thank you.

      • KCLau

        Can try with the local banks. I don’t see any trouble getting loan if your incomes qualify.

    • 03032maf

      Hi KC Lau,
      can you please help me to answer this? I am planning on buying a 2nd house this month. After signing the SnP, while waiting for the process to complete, I buy my 3rd house in the same month. Will the bank allow for 90% still or only 70% MOF?

      Thank you for your time and assistance.

      • KCLau

        This is technically a difficult situation. You might end up with getting 70% only for both these new mortgage.
        If Bank A find out you are applying loan on Bank B, different amount, different property, they will question and probably offer you 70% MOF only.
        If both loan application is at similar amount, both banks might think that you are applying loan for the same property.
        Check with your bankers who wants your business. They will tell you what to do.

    • CK

      Hi mr KC ! If my ada owns a house and the house is free from loan@debt . Currently i take care of the house . I rented the house and tenancy agreement is under my name (landlord) . Can i use the rental agreement as my income @ supporting doccument for house loan ?

      • KCLau

        Rental income can be considered income in calculating DSR. However, each bank treats it differently – some 50%, some 100% etc. And make sure your tenancy agreement still have 6 months remaining, and your bank statement can show the rental income persistently.

        • CK

          Oh sorry sir , i meant the house is my dad’s . Under his name . Since im taking care of the house , in the future can i put my name as the landlord and will it be considered as my income ?

          • KCLau

            I am afraid our IRB (Inland Revenue Board) will see it as your dad’s income – who signed the Sales and Purchase agreement, the legal owner.

    • Esna

      Hi , im planning to buy my 3rd house but my DSR has exceed 70% of my income . Im staying at my dad’s hse and the two properties i rent it out . Will the rental be considered as my income ? So that my DSR can be reduced , or not ? Thanks

      • KCLau

        Rental can be considered income too. Make sure your tenancy agreement still have 6 months left. Most banks take your rental income fully for calculating DSR.

    • Afq

      Hi KC , just wanna ask u a question . My wife is a gov servant . She bought her first house using normal housing loan (90%) and bought her second house using govt loan (100%) and currently she wants to buy her third property , question is , would the 3rd loan be 90% or 70% . Tq

      • KCLau

        By right, shouldn’t be eligible for 90% on the 3rd loan. But no harm checking with the bankers to verify.

    • Farhi

      I was thinking of buying soho with commercial loan but i was told the utility bills for commercial loan would be higher than residential soho. Is it true?

      • KCLau

        Yes. The Utilities bill is much higher than residential units.

    • KK

      Hi KC, below is my situation:

      1) 1st Property – SPA (Me & Wife) – Loan (Me & Wife)

      2) 2nd property – SPA (Me) – Loan (Me)

      3) 3rd Property – SPY (Wife & Sister) – Loan (Wife & Sister)

      We decide to buy a house with joint name and same as loan. If we do settlement right now for 1st property, how long it takes to clear the record if we plan to buy the house in November? We hope to get the loan at 90%.

      • KCLau

        Once your clear the 1st Property loan, you can show the “proof” to the new bank you are applying loan, instead of waiting for the system to update in CCRIS . I think that’s the fastest way. “Proof” will be the statement that your loan has been fully settled.

    • Santhi.

      Hi Mr.KCLau,

      1. First property- My husband bought cash payment.(no applied any loan.)

      2. Second property- bought 2013 (RM105k) loan & property under my name & my husband name.

      3. Third property- Next year we plan to buy house RM350k joint ac.

      – can get full loan or 90%?


      • KCLau

        Hi Santhi, it counts by the existing loan you have.
        Since you only have one, you still qualify for 90% for the 3rd property.
        I would suggest that you use one individual name to apply loan, so the other spouse can still qualify for 90% on your 4th property.

    • ChrisC

      Sorry the 2nd Property loan is under both of our names.

    • ChrisC

      Hi KCLau,

      I have a question for you regarding applying loan for a new property while having existing properties. My scenario is like this:-

      1st property – SPA (Me & Wife) – Loan (Me) Fully Settled – Staying
      2nd property – SPA (Me & Wife) – Loan (Wife) – Sold
      3rd property – Can I anyone of us apply and get 90%?

      The other issue is that our payment records for the 1st 2 properties have constant 2 months outstanding before settlement. Will that have an impact on the loan margin of the 3rd property?

      Thank you.

      • KCLau

        Hi Chris,

        1. Since you no longer have loan, the 3rd property loan is considered one loan, so it is entitled to 90%
        2. About your constant 2 months outstanding, it will reflect as “2” for each months in your CCRIS report. But it will take 12 months to clear the previous record. You can go to Bank Negara to print a copy of CCRIS (with your IC and thumb) using the self-service machine to understand your report.

    • Tastyroad

      Sorry jus wish to add on. The downside is that this prime housing is near to a Hindu temple: not sure how will that affect the property pricing and living condition etc…

    • tastyroad

      Hi there,

      Thanks for your help, so how do I know the house loan is under a joint name or single loaner?

      We hv joint name for the first property, and 2 yrs ago I bought another condo both name and loan is under my name.

      So for the 3rd property, can I loan up to 90%?

      • KCLau

        You can check on your loan letter offer, and also the loan agreement. If two person signed, it is joint-name.
        The third one – you are not qualified for 90% LTV since you already have two loans.

        • Tastyroad

          Thanks KC, thanks for your quick response 😉

          Apart from this, is Elmina project consider a good investment for future?

          We are looking at a corner house, approx. RM1.1mil, some frens commented for this budget we should look for a semi-d in sungai long instead. We are confused and worried the property market might burst. This is actually investing for own stay as well future appreciation. What you think?

    • KY

      Hi KC,

      I have a question,

      I have only 1 property with loan,

      my wife have 2 properties with loan,

      now if we want to buy third property with Joint name and Joint loan, can we secure the loan more than 70 %?

      Thank you.

      • KCLau

        KY, the 3rd property your wife is subjected to the 3rd loan (70% LTV).
        Unless you can structure that only you apply for loan.

    • AMAN

      Hi KC,
      1st (me only)
      2nd (me and my gf)

      Third one, we planning to buy together, 70% still apply?

      • KCLau

        Aman, on your side, it will be the 3rd loan. Unless you can arrange that only your GF apply loan for the 3rd property.

    • nandini

      Hi KCLau,

      I wanted to buy second house, the first house I rent out. Bank will consider first home as property income or existing commitment.

      Thank you.

      • KCLau

        Your first house is rented out. The rental income can be used to calculate your Debt Service Ratio (DSR), meaning more income for you, thus you can borrow more. Please note that in order to prove your extra rental income:
        – stamp your tenancy agreement
        – make sure rental is deposited in your bank account on time, regularly, so that it can be shown in the bank statements
        – tenancy agreement with more than 6 months remaining

    • Rajalu

      Hi Mr. Lau,

      First of all thanks for helping people like us. Please help me with my scenario below.

      1st property – joint loan & ownership (me and Brother)
      2nd property – single loan(wife)but joint ownership (wife & me)
      3rd property – joint loan and ownership (me & wife)

      will the third property be considered 2nd or third for us.

      • KCLau

        In your case, your name and also your wife’s name has got 2 loans already.
        The subsequent (4th property) will be subjected to 70% LTV.

    • Ethel

      Hi KC,

      I have question here:

      1st property- Loan – 1 name (my sister) property- 2 names (me and my sister)
      2nd property Loan- 2 names (me and my sister), property- 2 names (me and my sister)
      3rd property Loan- 1 name(me) , property – 2 names (me and my sister)

      3rd property will effect me finance upto 90%.

      Thanks in advance.

      • KCLau

        In your case, your name only appears on 1 loan before applying for 3rd loan – so still eligible for 90% LTV.
        However, each banks have their own policies and you better check with those who allow you to get up to 90% LTV.

    • James

      Refer to your paragraph “SSome banks are quite stringent. Like for my case, all of the houses are of joint ownership between my wife and me. So, I go to our bank and asked, “Hey, the S&P agreement has my name and my wife’s name on it. Can I refinance this loan with only my name so that my wife isn’t associated with the loan?”

      In this case, the joint ownership house is fully settled? You are applying fresh loan with your name only right?

      • KCLau

        It applies regardless of whether the existing housing loan is settled or not.

    • Katherine Lee

      Hi KC,

      i heard that now the rules already changed and for the scenario as at below:

      1st property- Loan – 1 name (husband), property- 2 names (husband and wife)
      2nd property Loan- 2 names (husband and wife), property- 2 names
      3rd property Loan- wife name consider 3rd property and only can finance 70%.

      Is this true? Thanks in advance. 🙂

      • KCLau

        Hi Katherine, as far as I know, the wife only get 1 loan, and still qualify for 90% for third property.

    • Carson

      Hi KC,
      I am going to sign the bank offer letter and SAP soon for my first house.I still consider under 2 bank offer.Bank A offer 3.9 + 0.50 while Bank B offer 3.84 + 0.61.As i know + % lower will be better,correct me if i am wrong and can kindly advise which is better amount this 2 option .At the moment i still prefer bank A with lower +% and lower interest,however Bank A need to joint with my father and Bank B dont need.Further,Bank B told me that is better to choose a single application without joint as there will save the quota later for my 3rd housing loan.Bank B said that better to joint on 3rd housing loan with my parent but not now to get the 90% loan under both name.Is this true?confusing.Thanks in advance for your reply.

      Best Regards,
      Carson Lim

      • KCLau

        Bank B has a point. Try not to joint-loan.

    • Jackson

      Hi KC,

      I have question here.

      I have 3 residential loan under my name:

      1st 90%
      2nd 90%
      3rd 70%

      If I pay off my 2nd 90% loan and plan to buy another residential property, can I get 90% loan for the new property?

      • KCLau

        I am afraid you still can’t get 90% for the new property because you still have 2 residential housing loan (regardless of the existing LTV).

    • leon

      hi, i buy 1 house, my gf buy 1 house, after that we want joint name buy one more house. it cnosider 3rd house d? cannot loan 90%?

      • KCLau

        That’s still the 2nd house for both. But I can buy separately, then 2 houses for both (total 4) to get 90% financing.

    • sindy

      Hi KC,

      I have question here.
      I am joint borrower of refinance my bf house.But i dont own this house
      Then i bought my first house with 90% loan.
      Now, i am buying my second house, but MBB agent tell me that this consider 3rd and hence can get 70% only.

      Is this true? But the first loan i am just joint borrower only…

      • KCLau

        Hi Sindy, I am sorry that if the bank sees it that way, I am afraid that it actually is.

    • Shyamala Kanagarajah

      Hi…i would like to buy a second first house was a purchased by my brother n me.
      I would like to know how do i go about with this…will i be eligible for a 90% loan.
      Thank you

      • KCLau

        Since it is only your second house, you are still eligible for 90% loan provided that your debt service ratio allows that.

    • kumar

      Hi KC,

      Thanks for your clear explanation on the video.

      I have a question here. If i already have 2 Residential Property and would like to purchase a commercial property, will this considered as 70% loan or 90% loan.

      Kindly advice and thank You

      • KCLau

        the 3rd property 70% LTV cap is just applicable to residential properties.

        • Chua

          Hi KC,

          1. If I have 3 residential property and I would like to purchase the 4th property which is commercial title can I still get 85% loan?

          2. If I have 1 residential and 1 commercial property so if I purchase the 3rd property can I still get 90% loan?

          • KCLau

            1. the commercial has nothing to do with residential loan. If your DSR qualify for 85%, then you will get it.
            2. 3rd property 70% LTV only applies to the 3rd residential loan.

    • Akmarul

      Hello KC,
      Good article. I just learned that MBSB can offer that. I’ve heard also that one of the banks in Malaysia can offer commercial loan, even if you buy residential. That means you can still get 85% loan. But this need further verification.

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