YES!!

Everything you wanted to know about housing loans!

QUESTION1:
My bank rejected my loan application citing my unsatisfatory track record in credit card repayment. As far as I know, although I have missed a few payments occasionally, I have since settled all the outstanding. Please explain.

ANSWER1:
The Central Credit Reference Information System (CCRIS) used by all banks usually reflect applicants one-year payment track record. So, even though you have fully settled now, but you missed payments regularly during the last year, some banks may not be comfortable in granting a new loan to you.



QUESTION2:
I bought a property in a good location but near a cemetery about 100 metres away to be exact. My bank rejected my loan application without giving any reason. Why?


ANSWER2:
In your case, I belive the Marketability Factor (MF) was low. You can always check with your bank if they are willing to approve a lower margin of finance.




QUESTION3:
What is an "interest only" loan?


ANSWER3:
Certain banks offer "interest only" loan for first five years where you only have to service interest instead of the normal installment, which consists of interest plus principal amounts. Your full installment will commence from the 6th year onwards. Bear in mind, that such product will lower your monthly payment towards the loan , however the outstanding principal will remain unchanged for the first five years.




QUESTION4:
Will banks reveal my income to the Lembaga Hasil Dalam Negeri (LHDN)? I thought thaht banks generally adopt customer confidentiality policy.


ANSWER4:
When you submit a standard loan application, banks are obligated to divulge any information to the relevant government agencies as and when required and deemed necessary.