Home Loan Guide

Property Financial Planning Property loan has become an essential financial product whenever we need to fund our purchase of a new or sub-sale property or re-finance our existing property loan to restructure our debt or generate working capital for personal or business use. However, selection of the right package that is suitable for your needs is very important. Hence, there are a few clues before you select your property loan package:- Assessing The Requirements Your objective (funding new purchase or refinancing - cash out or not) Type of property (landed property or apartment/condominium) and location Leasehold or freehold Margin of loan Current total fixed household expenses per month Be watchful of healthy debt maintenance ratio (range 40% or below is preferred by financial institutions) If you have high fixed household expenses or high debt maintenance ratio, which are both unfavorable to secure a home loan under your personal name, then you should get a joint applicant (e.g. spouse) to prove a better combined income. If you don't have big amount of down payment, you may consider to withdraw your Employees Provident Fund EPF Account II for your down payment, which has its criteria and maximum eligibility of withdrawal. Based on the few factors and advices mentioned above, you shall able to justify your cash flow in serving the repayment later.

Documents Required For Loan Application Make sure you have proper financial documents to support your application such as:- Loan application form Photocopy of I/C of all applicants (Front & Reverse) Latest J form / Borang B or BE (last 2 years) Pay slips for the last 3 months Copy of S & P Agreement/deposit or booking receipt/letter of offer from the housing developer A photocopy of the land title (if any) The bank account statements (saving passbook/fixed deposits/current account statement) for the last 6 months Valuation report for completed house Latest statement of your existing home loan (for refinancing) Additional documents to support if required:- Latest EPF Statements Confirmation Letter on current salary from employer If you are self employed, you need to provide your business registration documents, latest business financial statements, 3 months business' bank statements, and other supporting documents to support your income.