Qualifying for a Mortgage

To qualify for a Mortgage, be the borrower that Lenders like the most!

Here are the simple steps to qualify yourself for a Mortgage:

1) Property Type and Location

- Make sure your mortgaged property is fall into Lenders' NON NEGATIVE LISTING properties. Every Lenders have their own listing and it is different from each other. Again, Location! Location! Location! Just in case, they have to dispose off the property in getting back their loan or it will become bad debts at the end!

- Property value MUST be justifiable by Bank's panel valuer firms. You might want to get verbal indication on property value from Lenders up front. It is FREE! To get property current market value, kindly provide the property details as below:

a) Property Full Address
b) Type of property
c) Freehold/ Leasehold (balance years to go)
d) Size (land & build up)
e) Renovation details, cost involved and when was the renovation?

Tips:
Lenders will give loan based on Property Current Market Value or Purchase Price whichever is LOWER! You can play around with Purchase Price when comes to property acquisition if property current market value can be justified in obtain more loan sum from lenders, but the price to pay for it is you have to pay some compensation to Property Vendor cause you make vendor property disposal gain more and hence tax more.

2) Borrower Income and Job Stability

- Lenders love stable income stream borrowers. Just show them what you have to prove your income receivable every month. They can be in the form of Payslips, Bank Statements, EPF statements, Tax statements, Stamped Tenancy Agreements, Deposit Slips and others...... Make sure matching can be done to calculate your monthly income figure.

- Try to avoid "Own Print" income documents like Payment Vouchers, Company Letters, EA Form ONLY!!

Tips:
Do your filing properly so that you won have hassle to retrieve documents for loan application to SAVE MORE INTEREST from time to time!

3) Mortgage Debt Service Ratio (Mortgage Repayment per month/ Income per month)

- Make sure your Debt Service Ratio is not exceed 1/3 or 33.33%! Or you will be falling into category of difficult in repay-back the installment and possibility of bad debts from Lenders perspective.

Tips:
If out of the ratio, then
a- source for co borrower in bring up the Income as a whole
b- lower down the loan amount to be borrowed (you might have to borrow
from relatives, friends or withdraw from Employee Provident Fund - Account II
if applicable, check out more details from www.kwsp.gov.my)

4) Total Debt Service Ratio (Total Debts Commitment per month / Income per month)

- Make sure your Total Debt Service Ratio is within 80%. Under financial planning model, suppose individual Total Debt Service Ratio should be within 50%, or you are highly expose to debts! This is not "healthy" in Finance!

note:
Total Debts Commitment includes other mortgage loan, personal loan, overdraft, credit card minimum payment, hire purchase loan and others......

Tips:
ONLY take in to consideration of those debt commitment under Financial Institutions! Your owing to friends and credit companies is not counted for loan qualify.

5) Your Repayment Habit/ Pattern

Lenders are accessible to Central Credit Reference Information System (CCRIS) to find out borrower repayment pattern. CCRIS is a computerised database system that stores information reported to the Credit Bureau on individuals repayment pattern of all debts commitment under Financial Institutions. Lenders will judge the repayment pattern in granting the new loan facility to you. Lenders want GOOD PAYMENT MASTER!

Tips: DO NOT MISS OUT MORE THAN 2 TIMES of any debts commitment in a calendar year from today! Or, delay your loan application till the particular months data disappear from the CCRIS report.

To obtain your own credit report, please visit BNMLINK at:

Ground Floor, D Block, Jalan Dato' Onn, Kuala Lumpur.
Tel: 1-300-88-5465 (1-300-88-LINK) (Overseas: 603-2174-1717)
Fax: 603-2174-1515 E-mail: bnmtelelink@ bnm.gov.my

For more information on CCRIS go to http://creditbureau.bnm.gov.my.

6) Your Credit Background

Lenders are accessible to Credit Tips Off Service (CTOS) to find out borrower credit background such as any bankruptcy or court case pending...... NO APPROVAL CAN BE GRANTED IF YOU ARE STILL IN THE CASES!

Tips:

a- Get your clearance letter and present it together with loan application, then problem solved!
b- WAIT!
c- Talk to your lawyer for special arrangement

To obtain your CTOS report, please visit:

CTOS Sdn Bhd (209649-U)
Unit A-8-4, 8th Floor, Megan Avenue 1,
No 189, Jalan Tun Razak, 50400 Kuala Lumpur,
Malaysia
Tel: 603-2770 8833 Fax: 603-2770 8834
Website: www.ctos.com.my

AS SIMPLE AS THAT!

Plan your finance well to have "wealthy" and "healthy" life style TODAY!

DO KEEP AN EYE ON YOUR MORTGAGES!!! A very important finance tools to balance out your financial plan......