Need help with home loans?

How To Buy Your First Home?

Buying a first home requires you to go through several important steps – here’s a snapshot of what you will need to do before reaching your final destination. 


Step 1 – Prepare your finances

Your first step should be print your CCRIS report from bank Negara and print your CTOS report from CTOS company. 

These 2 reports are important to be review by the banks. You may want to know your finances outlook before apply for a bank loan. 

Sometimes, you may forget that your family had used your name for bank’s loan facilities. With this, the bank will still calculate you as the paymaster and holding this as commitment. 

Be prepare first hand will be a good way to tackle any issue later.


Step 2 – Check out Eligibility for loan 

You must check how much the loan entitlement before looking for the ideal house. 

If you are entitle for loan amount RM315,000 (90% margin of RM350k), the ideal purchase price will be RM350,000. 

Then, you may want to look for a house price that less than RM350,000. 

There are many ways to check eligibility for loans.  

But, one of the easiest ways is by filling up our contact form. 

By clicking the link here and fill up the necessary information, we shall email you the eligibility report within 24 hours. 

Click here to claim your eligibility report


Step 3 – Calculate the Cash Needed  

How much cash will be needed to buy a house? 

a) Deposit 10% x Purchase Price ( if you are taking 90% margin of finance)

b) Sales and Purchase Agreement (SPA) Stamp Duty and Lawyer Fees : Estimated 3-4% of purchase price 

For Example, if you are buying RM350,000 house. You will need the following cash. 

a) Deposit 10% : RM350,000 x 10% = RM35,000

b) SPA Stamp Duty and Lawyer Fees : RM10,500 – RM14,000

Total Cash needed: RM45,500.00 

Other cash can be finance in the loan*: 

a) Loan Agreement Fees and Stamp Duty : Estimated 2-3% of loan Amount

b) Valuation Fees (for completed property): Estimated 0.50% of Loan amount. 

*Normally, bank allow for financing these fees, however still subject to approval.


Step 4 – Choosing A Home 

After all the finances and deposit sort out. Now, you can start to look for a house within your eligibility budget. 

Few things you may want to consider when choosing a house:

a) Location

Perhaps, you need to consider location near to your work place. Or near to transportation to get you to work. 

While, in klang valley traffic jam is like our normal “Nasi Lemak” breakfast. It’s everywhere. You might want to look for less congested area to stay. 

Easy access to highway and straight up to your work place will be ideal too.


b) Easy Transportation

Look for area that easy commute like near LRT, Star or commuter.  

Because you never know when your car will be break down and you may need to use them.


c)  Population

If you are staying the area, you must understand the population too.  

While, if you are married, you may want to stay at more family oriented area.  

Instead, of area with a lot of students and the rental unit always change hand. 

Look into your purpose of buying the house. 

You should look for area with convenience stores, clinic, market, banks and shops within vicinity too.


d) Property Condition

Look for property in a good condition. If not, you may need to do many works on repairing and maintaining the property.  

If it’s come in cheap price, you need to re-calculate your repairing cost or renovation cost. Do not underestimate the cost of repairing a house. Its can make you nuts! 

*We do not recommend for first time house buyer to buy an auction house. It is complicated process unless you have experience to deal with the problem. If not, just avoid it. 

Take times to check out the surrounding area, avoid high electricity cable, oxidation pond, rubbish dump and other negative factors.  

If you buying a condominium, apartment or any non-landed property. You must look for place that is well maintained too. 


e) Property Title 

Look for property with title issued. Regardless, strata title or individual title.  

Especially for property that had be around for quite sometimes. 

For developer had gone bankrupts and property still under master title try to avoid this. Just to save for headache later.


  Step 5 – Apply For Bank Loan 

After choosing or booked a house, now you have to apply for a loan. 

Since, you have check your finances upfront, then this will not be an issue. 

You can come to us and we will take cares all the application.  

And will definitely look for the best home loan packages for you. 

Did we mention, our services are FREE? 


 Step 6 – Choose For the Best Home Loan 

Boom Boom Bang…. The loan approved within 1-2 weeks (subject to bank). 

We will give you a comparison report for you to review and shall advice you accordingly. 

You choose one best housing loan offer and we shall arrange the next steps.


Step 7 – Arrange Bank’s Panel Lawyer  

Once your loan approved and you signed their letter offer, bank will arrange with theirs’ panel lawyer for loan agreement signing. 

Meanwhile, bank’s panel lawyer also can be engage for doing your Sales and Purchase transaction.  

Once both important documents signed, you just need to wait for property hand over.


Step 8 – Property Hand Over 

On the settlement date, you take the legal ownership of the property. 

This is also the day on which you’ll receive those keys and finally celebrate becoming the owner of your first home! 

Remember, purchasing a property is a complex process and this is only simplified guide to what you can expect.

 To ensure your experience is as stress-free as possible, speak to a malaysiahousingloan consultant and take advantage of our expertise and advice as your work your way through the purchase process.


Enjoy this article? You may wish to read about the Home Loan For First time Home Buyers

Looking for a Home Loan? Check out our awesome video on how we can help you for FREE.

We love to hear from you, please contact us now to claim your eligibility report

If you’d like to discuss your home loan options, contact our malaysiahousingloan consultant.

You may also like:

Raising A Deposit

Stamp Duty & Legal Fees For Purchasing A House

What Documents Are Required For Home Loan?

What To Look For In A First Home?

What you need to know about My First Home Scheme?




By | 2016-11-01T10:40:13+00:00 September 5th, 2013|1st Time Home Buyer, Housing Loan, Latest Article/News, Purchase From Agent/Owner|Comments Off on How To Buy Your First Home?