Steps to ensure a seamless house loan approval

Steps to ensure a seamless house loan approval

Monday, October 29, 2018

5 comments

Steps to ensure a seamless house loan approval  |  Are you planning to buy a house in Malaysia? But the thought of getting a house loan approved is stopping you from taking another step further because you have heard a lot of stories on the housing loan gets rejected by the banks or how lengthy it could be. You certainly do not want to prepare so much and finally found the right house for sale in Malaysia only to get your bank loan rejected. All the hard work that you have done in researching, planning and preparing have all gone to waste. 

Fret not, there are many schemes available out there to help you to buy your first house, such as the Rumah Selangorku scheme. In addition, there are some things that you could do to speed up and ensure a seamless house loan approval too. This article will guide you through the steps to ensure a seamless house loan approval.

1. Start saving early 

It is always good and never too early to start saving. Start as early as you can. You will still need some cash in your hands even when you have successfully secured a bank loan. Think about the downpayment as home loans will not give you a full 100% loan, the stamp duty fee, legal fees and repairing fees that will cost you. Bear in mind that they do not come cheap as well. 

Most banks in Malaysia offer home loan up to a maximum of 90% of the property’s cost that you plan to purchase. Therefore, you will need to fork out the remaining 10% of the downpayment from your own savings. After settling the payment for the downpayment, you will still need to fork out money for the legal fees, stamp duty fees, valuation fees and real estate agent’s fee that is normally 2% to 3% of the property’s price if you are buying a property through real estate agent.

2. Postpone other loan applications

Know your priorities. If you plan to buy a car as well, leave it after you get your housing loan approved from the bank. Avoid applying for multiple loans, such as car loan or personal loan at once because this will reduce your chance of getting your home loan approved by the bank. Same goes to the applications for credit cards because this will then indicate an additional financial commitment. 

If you already have credit cards, ry to also reduce the number of credit cards that you have, because having more credit cards is an indication of more commitments. Therefore, be patient. Wait till you get your home loan approved by the bank before applying for the additional loan applications. Also, avoid sending multiple home loan applications at once because it will not increase any chance of getting your house loan approved, it might even bring the reversed result of not getting your house loan approved because this will raise enquiries from the bank making them wonder why have you applied for so many loans or could it be that you have been rejected by multiple banks before? 

Hence, submit your house loan application to  the bank that you think would be most appropriate to prevent unnecessary hassles, and at the same time, maintain a good financial character that will increase your house loan approval. So do your research early and figure out which bank is the most suitable bank for you to apply for house loan.

3. Be on time in paying your bills

If you already have some loans that you have applied earlier, do make sure you pay the bills on time. Keep up with the payments and pay your credit card bills on time. It is true that your credit card history will greatly affect your home loan application. Being a person who pays your bills on time increases the chances of getting your home loan approved by the bank. However, this should be a practice since the day you start paying for your bills as the bank will be checking your payment records since day one and not only the past few months. Make sure you are free from debts as well as the banks will be able to track all the financial history about you, from late payments to bankruptcies. 

4. Be in a steady employment

Tired of your job? Planning to switch your career and leave your current job? Drop that idea, because it will affect the chance of getting your loan approved. Be patient and wait till you get your loan approved before you quit your current job. The change in career and earnings is related to the chance of getting your home loan approved. In addition, a new career is deemed as a risk to the bank as they see it as a destabilization of your finance. 

However, this is not applicable if your new job offers you a higher pay, with the condition that you have already gone through the probational or transitional period and is currently in a stable employment. House loan application will be easier to get approved if you have been in the same career for at least 2 to 5 years. Therefore, the safest bet would always be to wait until the home loan is approved before making a career shift.   In conclusion, getting your home loan approved is not as daunting as it se ems to be, as long as you start preparing and planning earlier. Be sure to read through the conditions on the bank agreement before you sign the loan agreement. 

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10 Creative Ways to Declutter Your Home

10 Creative Ways to Declutter Your Home

Thursday, June 28, 2018

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10 Creative Ways to Declutter Your Home  |   The idea of living with less sounds equal parts attractive and terrifying. We live our whole life being driven by conspicuous consumption and being driven to excess by the marketing ploys of consumerism. Consider the benefits of having less: less to clean, less to worry about, less debt, less to organize, less stress, more money and more energy and time for the things that do matter.

Once you have gotten into the right mindset and want to start decluttering, the next question is where and how do you begin. If your home and your life is filled with clutter, trying to tackle a mountain of clutter all at once can be quite an overwhelming experience. Some people may have it easier than others (for example, if your space is smaller like a Toa Payoh HDB), but this doesn’t make the journey less daunting. So, read onwards for some pretty fun and creative ways to get you started on decluttering your home.

1. Start with 5 minutes

Rome wasn’t built in a day. So, it is important to start with baby steps. Set yourself up for success by devoting 5 minutes of your day to do some decluttering. You can pick even pick one different method of decluttering from this list each day. Although you might think 5 minutes won’t make a dent in the that imaginary mountain, it’s still a good start. 

2. Give one item away each day

Make it a habit to give away things you don’t need. We all have excess possessions lying around without purpose. Identify one item each day and give it away to someone who needs it more than you do. Not only does it get rid of your clutter, it helps instill more generosity.

3. Fill one trash bag

Another great decluttering technique is to grab a trash bag and see how quickly you can fill it up with things that you don’t need. This helps visually attune you to how much excess you have in your life.

4. Try the closet hanger experiment

If you have a problem with clothes, you can try this technique. Identify items of clothing in your wardrobe to clear out by hanging all your clothes with hangers in the reverse direction. If you wear something, return it to the closet with the hanger facing the right direction. After a few months, look through your closet to identify pieces that you have not worn. This makes it easier to have a clear picture of the clothes you really do wear and those that you don’t, which can then be discarded.

5. Make a list

Make a list of places or areas in your home that you want to declutter. Start with the easiest and work your way down the list. Once you have a list, this becomes a set goal that you can work towards during your free time. You can make it as easy or as difficult as you desire, based upon what area you are tackling at the moment.

6. Take the 12-12-12 challenge

The 12-12-12 challenge is a simple technique. Find 12 items to throw away, 12 items to donate and 12 items to be returned to their proper place. It can be a good way of incorporating fun and excitement into organizing your house. What’s great is that you can also involve your children in this technique, setting them up to be able to manage clutter in the future.

7. Change your perspective

Sometimes, it’s not about how you carry out your decluttering, it’s about how you think about your decluttering. It might take a while for you to change your perspective on your clutter. So, consider taking advantage of some strategies to attune yourself to clutter you may have missed. For example, you can take photos of your house and really look at it from a different point of view to identify hiding clutter. The point is to work towards seeing your space in a new light.

8. Experiment with numbers

Invent a challenge for yourself to help yourself come to the realization that you don’t need as much as you think you do. Experiment with numbers to keep the process interesting. For example, if you have problems with having too much clothing in your closets, challenge yourself to wear 20 articles of clothing in 1 month. If it seems too little, adjust the number as you go. The key idea is to challenge yourself to live with less to see what you learn from the process.

9. Use your imagination

We all have those moments of weakness when it comes to decluttering. More often than not, we are conflicted in the process of getting rid of certain items, and some items may seem more difficult to remove than others. This is especially true for certain objects that have sentimental value. In the process of decluttering, the conventional psychological approach is to ask yourself why you need it, and what is convincing you to keep it. This, however, can end up being a never-ending circle of “throw it-but-regret-it-then-keep-it”. An approach with more unique questions like “If I were buying this item new, how much would I pay?” sometimes may help breaking us out of this vicious cycle. More creative questioning may prove to be helpful with overcoming the sentimental barrier in removing unneeded clutter.

10. The four-box method

The four-box method is a good decluttering technique if you have trouble with deciding what goes and what stays. Have four boxes, each for a different purpose: trash, give away, keep or relocate. Work your way through your rooms in your home. Evaluate each item and place it into one of the four categories. Make sure you consider each item individually and don’t pass over any items. Each project in each different space might take shorter or longer, depending on the number of items you have and the size of the space. However, the technique and principles for all your spaces remain the same.

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Things You Need To Know Before Getting a HDB BTO

Things You Need To Know Before Getting a HDB BTO

Sunday, September 3, 2017

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Things You Need To Know Before Getting a HDB BTO | All your friends who are your age are getting their first HDB or BTO, and here you are still wondering of the process and things that you need to know before getting an HDB flat or BTO flat. You browse through HDB website but still unsure of the steps. You start reading many articles regarding the guide to getting a HDB or BTO flat. However, you are still  unsure of where to begin, after all, this is a big decision that involves a lot of money. You do not want to miss out any important steps when it comes to buying your first home. This article will guide you through the important things that you need to know before getting an HDB flat or BTO flat.   

Things you need to know before getting a HDB BTO

1. Minimum Occupation Period 

Firstly, you need to know that when you purchase a new HDB flat, there is a minimum occupation period (MOP) of 5 years to fulfil. In other words, you are required to stay at the HDB flat for at least 5 years. The official 5 years period will start since the day you collect the keys from the HDB office. In addition, you are also prohibited from buying private properties throughout the 5 years of minimum occupation period, whether it is a local private property or an overseas property. Moreover, you are not allowed to rent out the entire unit. However, renting out individual rooms is possible as long as you are staying in the same unit.That being said, if it takes 3 years for your HDB flat to complete, it would then take 8 years to fulfil your minimum occupation period because the minimum occupation period starts on the day you collect your HDB flat keys. This rule applies to individuals buying a resale flat using a CPF Housing Grant as well. This is an important rule that you should keep in mind when it comes to buying your first HDB flat or planning to buy properties for investment purpose in the future.  

2. Resale Levy Payable 

The next important rule that most first time homebuyers missed out: the resale levy payable. A BTO flat is also considered as a subsidised flat. Therefore, if you were to sell your current HDB flat to purchase another new HDB flat, you will then have to pay a resale levy. The resale levy is depending on the size of the HDB flat. The table below will give you an idea how much your resale levy is if you were to sell your current HDB flat.  Size of HDB flat

Size of HDB flat	Resale Levy
2 rooms	15,000
3 rooms	30,000
4 rooms	$40,000
5 rooms	$45,000
Executive	$50,000

Therefore, do your planning ahead. Many young couples did not realise there is a resale levy payable when they first purchase their HDB flat, thinking that they could always upgrade their house when needed. 5 years later when they have children at home and are planning to upgrade to a bigger HDB flat, only then they find out that they are required to pay a resale levy if they were to buy a  new HDB flat. Hence, do your planning ahead if you want to avoid paying for a resale levy.  

3. Bank Loan or HDB Loan 

It is important to understand the difference between a bank loan and an HDB loan before deciding which loan you want to apply. List down the pros and cons of each loan. Do not forget about the downpayment that you would need to pay as well. The difference between a HDB Loan and bank loan is that HDB Loan is 90% LTV whereas bank loan is only 80% LTV. The HDB Loan also allows you to pay for a lower down payment, however, HDB loan offers less flexibility. As for bank loan, it requires a higher down payment but comes with greater flexibility. Do take caution that the validation for HLE is only 6 months. More information on ways to apply can be found here.     

4. HDB Grant 

There are also HDB Grants available for people buying their first BTO flat. Check for the eligibility before applying for these grant. You can start looking for grant available from Special Housing Grant (SHG) and Additional Housing Grant (AHG). SHG is a housing subsidy that covers both the low and middle income families with grant ranging from $5,000 to $20,000, subject to buyer’s income. As for the AHG, it is a scheme that aims to help Singaporeans with lower income to purchase their first flat with grant ranging from $5,000 to $40,000, subject to buyer’s income as well. To qualify for an AHG grant, your household income should not exceed $5,000 per month, for a period of 12 months before your application for the flat. Do note that the time to wait is approximately 2 months to 3 months between the period of  successful ballot and flat choosing.  After the long waiting time, you will then be invited by the HDB person in charge to choose your desired flat and make payment for Option to Purchase (OTP).    

5. Withdrawal 

You are one step nearer to getting your first BTO flat. And that means there is no backing out for you. Once you have applied for bank loans and made payment for the downpayment of your BTO, there is no looking back unless you want to risk forfeiting your downpayment or deposit. Make sure you think thoroughly and be 100% sure that you are ready to commit before buying a HDB or BTO flat.   

In conclusion, it takes effort to prepare when it comes to getting a HDB or BTO. Be patient and you will be satisfied with the end results of it. 

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5 Home Buying Tips to Change Your Life

5 Home Buying Tips to Change Your Life

Monday, July 24, 2017

14 comments

5 Home Buying Tips to Change Your Life  |  Buying a home is a major financial decision, one that could set the course of your financial future for years. That makes it all the more important to find the right property and financing. Read on for five tips :-

5 Home Buying Tips to Change Your Life

   

Mind the Location   

Location is important, reminds The Malay Mail Online. Finding a property that’s at the center of everything you need, with easy access to everywhere, is a great feature to have. Some homebuyers actually choose homes that are far away because they’re more affordable. However, that kind of affordability comes at a cost too. Imagine coming home to a house that’s two to three hours away from where you work. That’s exceedingly inconvenient for you. No matter how much you think you could persevere, have the fortitude to bear the traffic and distance—all for the chance of buying a home that’s affordable—you won’t be able to hold out forever. You’ll either have to rent an apartment or change jobs. Something will eventually give. That’s the true cost of buying a home that’s far out of the city center. By choosing convenience over cost, you’ve got a much better chance of landing the property that’s right for you.   

Read the fine print - Every last bit of it   

The Free Malaysia Today reminds you of the importance of going over the contract until you understand everything in it. Skipping paragraphs because of the legal discourse can land you in a wealth of trouble, if you aren’t careful. If the seller puts in a clause or terms that are particularly unfavorable to you, it’ll be easy to catch those terms and contest them. However, if you skip through reading the contract, you can miss these clauses and end up on the losing side of the bargain. So protect your interests better. Understand and remember what the contract says so you know the minute someone’s trying to give you the short stick.   

Use property finders   

In the past, you had to rely on word of mouth and real estate agents to find you properties. There were open houses, yes, but it all took a long time to set up and all were incredibly time consuming. With modern tools like online property listings, though, you get to browse for properties that much faster. Using sites like PropertyGuru makes it easy to find a house for sale in Seremban wherever you like. No need to pay a visit to the area to scour for properties on sale. You can do your browsing straight from your desk. This also means less work for your real estate agent, so she has more time to devote to other parts of the buying process—like negotiating for a better property price.   

Don’t be an emotional house buyer   

Buying a home is as much an emotional choice as it is a financial one. After all, you want to go for a home that connects to you, that makes you feel at home or at least gives you the sense that you can start something great there, that you can start putting down roots. However, that doesn’t mean you can let your emotions cloud your mind when it’s time to buy. There are plenty of homes that fit your budget and can still make your heart sing when you walk through the door. Find those properties. Don’t go over your budget just to satisfy your need to own a big home. If you’re going to end up in debt to afford that house, then it isn’t the right one for you. Still think that house is worth it? Keep in mind that this is going to take a chunk out of your Happy Fund for years. Make sure you go with the choice that’s right for your needs and your wallet. No one wants to be in debt for years. And that’s even assuming you’ve got a steady source of income. What happens in case of an emergency? Will you have enough to cover your housing costs along with your monthly expenses? So choose a home that’s right for your financial capability. That way, you won’t risk tying a major portion of your financial resources to your mortgage. Save for a down payment. The bigger the down payment you have, the lower your mortgage fees will be. That can make a massive difference later on. Pay the highest amount possible. This way, you can save up on costs that would’ve gone to paying for your interest.   

Have an emergency fund   

No one knows what’s going to happen in the future. You might have an exceptional job now but what about in ten years? Take steps to take care of your assets. Build a financial safety net to ensure you won’t end up defaulting on your mortgage payments and losing your home in the process, whatever happens.

So be ready for a big change when you buy a home. Depending on your financial habits, it can be best change in life—or worst one—you can make. 

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