Buyer’s Guide

Loan Application

PRIVATE LOAN APPLICATION PROCESS


A panel of bankers have been appointed to provide loans to those who qualify, but the final decision lies with you as you are free to choose any bank/finance company of your choice. The documents required to apply a loan are :-

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  • Original copy of the Sale and Purchase Agreement
  • Copy of the title deed if available
  • Photocopy of your IC
  • A copy of your last 3 month’s pay or your last 6 month’s bank statement (if self-employed)
  • Letter of confirmation on income and years of service from your employer
  • A copy of Income tax return/EA form for the past 3 years

Sequence of Loan Processing

  • Submission of loan application form with the necessary documents.
  • Interview by bank/finance company.
  • Letter of Offer upon approval from bank/finance company.
  • The Letter of Offer fully signed by you as acceptance of the offer and returned to the bank/finance company with a copy to the developer.
  • Bank/finance company’s letter of instruction to their solicitor to prepare the loan document which may be either:
    • Deed of Assignment and Loan Arrangement (for Strata Units); or
    • Memorandum of Transfer Form 14A and Charge Form (Landed units with individual titles).
  • Letter from bank/finance company advising you to execute loan documents at solicitor’s office.
  • Loan documents forwarded to bank/finance company for execution.
  • Loan documents returned to solicitors who will forward to developer for execution of Memorandum of Transfer.
  • Executed loan documents returned to solicitor for stamping and registration. Stamped loan documents forwarded to bank/finance company for safe keeping. A copy each is given to purchaser and developer.
  • Bank/finance company will release payments to developer progressively in accordance to the Third Schedule of the Sale and Purchase Agreement upon receipt of our invoice.

 

GOVERNMENT LOAN APPLICATION PROCESS


As a government loan applicant, you may have been advised by your Departmental Head on the requirements for a housing loan or you may refer to the web site Treasury.gov.my for information.

 

FLEXIBLE LOAN REPAYMENTS


Banks offer a variety of flexible loan repayments to suit your financial standing. You can speak to your bank officer about the following loan repayments:

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Graduated payment scheme
This scheme allows lower instalment payments at the beginning of the loan and will gradually increase
over  time. If you wish to allocate more funds for other purposes, this is the scheme you may consider taking.
Prepayment flexibility
Some banks allow you to make prepayments or extra payments so you can save considerable interest
charges on condition that you make prompt monthly repayments..
Partial prepayment of the outstanding loan
Some borrowers find it useful to shorten the loan tenure by making partial prepayments with surplus
savings or annual bonus. This effectively reduces interest charges if prepayments are made during the
early years of the loan tenure.

For more information about housing loans, visit www.bankinginfo.com.my