(Applicable for Malaysian only)
Planning to buy a new home? Here are some of the guidelines and documents needed for processing;
Assuming you are buying a new apartment valued at RM100,000.
1) Monthly Payment
Property Value : RM100,000
Term Loan : 20 years
Interest Rate : 6.5% per year
Down Payment : 10% or RM10,000
Monthly Payment : RM671
2) Sales and Purchase Agreement (SnP)
– a binding contract between you and developer (for new property)
– Legal fees and stamp duty (1st RM100000 is 1%, subsequence is 0.5%)
– SnP : RM100,000 x 1% = RM1,000
– add another RM300 (approx.) for agreement fees, documentation, transport, photocopy, etc
– Total = RM1,300
3) Loan Agreement
– a binding contract between you and bank
– Legal fees etc (1st RM100,000 is 1%, subsequence is 0.5%)
– Loan : RM100,000 x 1% = RM1,000
– RM300 (approx) for agreement fees, documentation, transport, photocopy, etc
– RM50 – RM200 for bank pocessing fees
– Total = RM1,300 (excluding bank processing fees)
4) Evaluation Fees
– only applicable for used property
– RM300 to RM800
– A RM100,000 property will cost between RM300 – RM400
Initial Investment
Down payment RM10,000 + SnP RM1,300 + Loan Agreement RM1,300 = RM12,600
** Do note that some developer will absorb the loan and SnP agreement. Which mean you only need to fork out down payment only.
** Normally, a new apartment/condo will take 3 years to complete upon signing SnP, and 2 years for landed property
** During these period, the bank will release a progressive payment to the developer to finance their project
** Buyer will have to pay bank interest rate monthly. Once completed, buyer will start serving monthly repayment
** If in case the developer suddenly decided to discontinue the work due to financial problem etc, the buyer might have to continue to serve monthly repayment.
5) Documents required when applying housing loan
– Identity Card
– SnP
– Last Form J or EA form
– 3 months salary slip
– confirmation letter from employer
– monthly payment is 1/3 of your income
** Search around for the best rates, return, discount
Note: The above guidelines are subjected to change. Please check with the relevant authority for latest updates.
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Hi,
Thanks for sharing the information.
I think there is a mistake at initial investment.
Down payment RM10,000 + SnP RM1,300 + Loan RM1,300 = RM22,600
should be RM12,600. Right?
Lik Chin
Lik Chin,
You are right. Thank you for letting me know! I have made the correction. π