We are receiving tremendous request to explain in details for the new ruling “3rd House Financing Facility With Maximum Loan to Value 70%” .We would like to clear the air with the chaos in the housing loan sector. Here, we provide simple example for this new ruling.
These simple conditions apply:
1) Banks will refer to CCRIS report.
What is CCRIS?
CCRIS is a Bank Negara Malaysia (BNM) sponsored system that supports the functions of the Credit Bureau (CB)
What is CREDIT BUREAU (CB)?
Credit Bureau is a unit established by BNM to collect credit information on borrowers from financial institutions and supplies the information back to financial institutions.
The Credit Bureau does not collect any information on deposits or the investment portfolio of any individual or corporation.
2) Bank will only refer to existing home loan or payslip (for government staff). Bank will not base on Sales and Purchase agreement or ownership of the property.
Example 1 :
Mr A has 3 existing home loan with few banks.
Ms B has only 1 existing home loan with bank.
Now, Mr A would like to purchase a new house with Ms B. Sales and Purchase agreement under Mr. A and Ms B.
Scenario 3 :
Today, Mr A purchased a new house.
If he applied a home loan for the new house, what is the entitlement?
Answer: Up to 70%. Because, it is consider 3rd home loan. His existing home loan still appears in CCRIS report.
Mr. A don’t have any property under his name. Basically, he didn’t own any house. But, he has 2 home loans co-joining with his sister and brother. He joined as a co-borrower because both of his brother and sister do not have sufficient income at that moment.
Now, he interested to purchase first house under his name and apply a home loan. What is his entitlement?
Mr A has 10 houses around Malaysia. All houses are fully paid or buying with cash. Now, he is purchasing a new house and would like to apply for a home loan. What is his entitlement?
Answer: Up to 90%.*Checked with Ms Norhana from Bank Negara Malaysia ( 1-300-88-5465 )
For more home loan information, please free to contact us