With effect from 5 November 2010 (Friday), the following rules will apply for loan submissions:
1. Definition of 3rd HL – Borrower has more than 2 Housing Loans (HL) in the Credit reference record. Term Loans (TL) are not considered.
2. Application of Margin of Finance MOF for joint borrowers:
- Existing Housing Loan in credit reference Apply new loan MOF
- Borrower A = 1
- Borrower B = 2
- Borrower = A + B
- New Loan = 3rd Housing Loan 70%
- Borrower = A
- New Loan = 2nd Housing Loan
- As per prescribed MOF
- Borrower = B
- New Loan = 3rd Housing Loan 70%
3. Refinancing & Full Settlement
Example: HL (A) = RM588k
HL (B) = RM250K
Scenario 1: Refinancing
• New Loan to refinance HL(A)) = RM600K, this application will be considered as the 2nd loan
Scenario 2: Full settlement
• New Loan to finance a new Property but borrower has sold off the property under HL(A)
• New Loan will be considered as a 2nd loan
• Condition : Creator to provide proof of sale – Sales & Purchase Agreement OR down-payment of sold property
4. If the HL in Credit reference has an O/S balance of ‘0’ but the limit is still available (meaning the HL has not been closed), this account will be treated as 1 HL, unless customer has proof of account closure from their financier. Approval for such cases will be granted under deviation.
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2 Comments to Guideline to Apply Home Loan for 3rd Property in Malaysia
adam
What is the loan % for the below scenario :
Borrower A = 2 (already have 2 hse loan)
Borrower B = 0 (no hse loan yet)
Borrower = A + B
New Loan = 3rd Housing Loan = ???? %
Malaysia Loan
Hi Adam,
What is the loan % for the below scenario :
Borrower A = 2 (already have 2 hse loan)
Borrower B = 0 (no hse loan yet)
Borrower = A + B
New Loan = 3rd Housing Loan = 70 %
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