Firdaus Malek asked 9 years ago
Hi KC,
I would like to ask you a question in regards to my situation.
I am currently owning a house which pays a monthly mortgage of 3300. I had previously sold off another house I owned a couple of years ago. Now I am looking for another residential property which required a monthly mortgage of about 3500 a month. As for now I have an outstanding hire purchase for another 18 months of 1500. I could tell you my net salary after deducting epf and tax is about 8200. Looking at my own situation, I think it’s unlikely I would succeed in applying a loan for the new property. It’s a new project and will only be completed by 2019 and I will only obliged for the full mortgage in early 2020. After assessing my own cash flow, I am quite convince I could adhere to the payment. My concern is only on applying the new loan now because banks will definitely looking at my ability to pay based on my capacity under current situation.
With your vast knowledge in this space, what option do I have and you suggest for me to do. I am single by the way.
Thanks in advance.
Best,
Firdaus Malek
KCLau Staff answered 9 years ago
Try this:
– if existing property has equity, refinance it to cash out extra money to fully settle the hire purchase of RM1500/month (about RM27k required)
– when refinancing, extend the tenure to the maximum to lower your instalment commitment.
– find additional income proof – like part time income, or dividend income from stocks, etc.
– sublet your house to tenants and make sure you stamp the agreement, and have the rental deposited to your account each month for a few months as proof.
– then talk to a few bankers from different banks, or some brokers, find out which one would likely approve your loan.
Good luck!