Bros and sisters, from the feedback of banks as well as some of my friends and neighbours, i would like to share this.
Those who are buying properties in the near future, please take note of the following to avoid wasting your time and that of the property owner or agent as well. Applies mainly to residential properties. This is by no means 100% accurate and case by case exceptions do take place from time to time. When in doubt, seek legal or expert aid.
For any property for any development, if you are not Singaporean and have no Malaysia/Singapore wife = Most of the time cannot get any loan above 60% of the valuation for the property.
For any property for any development, if you are Singaporean and have no credit history in Malaysia = 70-80% loan for most of the time. Exception is if you and/or spouse are drawing a high enough pay, then can appeal for 85-90% loan but on a case by case basis. Except if its the 2nd or third property. Then 80% for 2nd and usually 70% for the third property.
For any property for any development, if you are Malaysian = 80-90% loan for most of the time except if its the 2nd or third property. Then usually 70% for the third property. If you are a Singaporean or a foreigner with a Malaysian wife, you may be able to get into this category especially if she is working in Malaysia and has a credit history that they can refer to.
*To be eligible for most bank loans at 80%, a couple combined income must be at least 10,000 MYR (Ringgit) or 5000 SGD monthly (They use 2x rather than 2.4 or 2.5) For those who are Malaysians or married to one, then they may use 2.4 to calculate.
Assuming 80% loan, the following applies:
For a 500k property, one must prepare at least 20%, meaning about 100k MYR (Ringgit). This is not inclusive of any stamp duty, levy or legal fees.
Added on, It can go up to another 30,000 MYR (Ringgit) - Meaning one needs at least 130,000 MYR (Ringgit) to be on the safe side.
For a 700k property, one must prepare at least 20%, meaning about 140k MYR (Ringgit). This is not inclusive of any stamp duty, levy or legal fees.
Added on, It can go up to another 3-40,000 MYR (Ringgit) - Meaning one needs at least 180,000 MYR (Ringgit) to be on the safe side.
For a 900k property, one must prepare at least 20%, meaning about 180k MYR (Ringgit). This is not inclusive of any stamp duty, levy or legal fees.
Added on, It can go up to another 3-40,000 MYR (Ringgit) - Meaning one needs at least 210,000 MYR (Ringgit) to be on the safe side.
Ones monthly loan for a house should be at a maximum of 1/3 of ones monthly income. For someone to service a monthly loan of 3000 MYR for example, their combined income (couple) should be 10,000 MYR monthly.
This is as we have bros who come in and ask around but we tried to help them with the loans for Nusa Sentral, Nusa Duta etc but most got rejected. Its fine if one does not have enough but when we suggested to help them get a smaller house, they scoff at us and said they are rich but somehow most banks reject them. Tried your best to help them but the banks just don't accept them.
Then one said they will buy 2 or more if we can get banks to approve 90% for each of the house and suggested we can do under the table. Straightaway told my bro to say no as too much risks involved.
We even have people who haughtily said, Malaysia, for 100k MYR i still get me at least 1-2 houses, don't bluff old Uncle ok. I am sure 500 SGD, i can place deposit for a subsale or place for one in EL/HH already.
Yes, really encountered some like that, now i know how some banks feel.
