Ain asked 9 years ago
Hello Mr. KCLau,
My name is Ain. Hope my email finds you in the pink of health. If i may take a little of your valuable time to find out my possibilities for a loan.
i want to take a loan on my name (i am a Malaysian) to finance my younger brothers'(foreigner) education in the US at John Hopkins University. It is a lifetime opportunity for us that he got accepted there. He obtained half scholarship too.
I need a RM450,000/- loan for a long repayment period. Having said that, now here is the matter. I am self employed (i play stock market via Maybank Investment), i do not have pay slips, fixed monthly income, in short, all the documents that are usually required for taking a loan. But i have a residential property under my name, bought in cash.
So i was wondering, what are my options for a loan and if i take up a collateral loan from the bank, will they still require all the said documents? Is it a wise idea to put my property as a collateral in this case?
i really am looking forward to hear your expertise on this and i thank you very much for your every act of kindness.
Thank you so much for your time once again.
Warm Regards,
Ain
KCLau Staff answered 9 years ago
Hi Ain,
Mortgage loan is the best option since the interest charged for housing loan is the lowest, and in the longest tenure.
However, your challenge is that you don’t have a regular income to qualify for a mortgage. Most banks wouldn’t want to lend money to somebody without a regular income. Here are some suggestions:
– do a joint loan with somebody who has a regular income and has the Debt Service Ratio that qualify for the loan. This mortgage is called 3rd Party Loan. The property is under your name, but the loan will be 2 or more names.
– declare your income although it is not regular. Talk to an accountant on the possibility of setting a business to register your trading profit as income, and pay tax for that. This will take some times to plan and execute, and won’t be effective in the short term.
Good luck to you!