Whether you’re looking for your first home to buy to raise a family or want to buy one as an investment, you’ll need a home loan to cover the cost of your purchase. Many Malaysians still don’t know what it takes to qualify for a home loan, or how to ensure that their loan application is successful.
Usually, after signing the sales and purchase agreement on a house, a home buyer has about 60-90 days to apply for a home loan. You’ll need to successfully obtain a home loan to pay off the rest of the house price. The loan is usually between 80-95% of the original house price, as it doesn’t take into account the down payment or deposit that you’ve paid.
If you would like to ensure that your loan application comes through, here are some tips to follow:
- Make Sure Your Provide Adequate Documentation
The banker helping you with your loan application should be able to advise you what documents are needed. Be certain you try and provide as many documents as possible, and as accurate as possible. Don’t ever try to submit falsified documents as this is an offense.
- Have a Good Credit Score
If you have previous loans and debts like credit cards or car loans, make sure they’re all paid, so that there’s proof that you’re a responsible lender and can handle your financial matters promptly. These credit scores will be monitored by bodies like CTOS and CCRIS that keep track of everyone’s loans from financial institutions and banks. It’s always a good idea to submit your CTOS and/or CCRIS documents to the bank together with proof of income.
- Have Adequate Savings
Banks are happier if they see proof that you have savings. So if you have any type of savings account, whether a current account, fixed deposit or the like, you might also want to submit it to the bank as proof that you’re more than able to pay the loan.
Housing loans in Malaysia are not difficult to obtain as long as you take a loan that’s within your financial capabilities. Just find a mortgage calculator and determine whether the house you want is within your financial abilities.