Buying House Guide in Malaysia ver 1.0
This guide was not meant to teach you how to find a good house but rather what it takes to buys a house in Malaysia. If you ask 10 ppl they will give you all 10 different answer but my information is correct as of today...
Here it goes:-
1. Find a developer or your dream house. (take your own sweet time the clock is not ticking)
2. Pay the deposit. (Ussually they give you 2 week to make up your mind. some is refundable some not)
They will give you a receipt of booking confirmation receipt.(very important)
You need this to apply for the loan. Dont sign the sales and purchase document before you check whether your loan will be approve or not!! otheriwse you will waste your booking fee as most developer will charge you 10% once you start signing the sales and purchase ageement and the clock is ticking. They will give you 30 days grace period to settle the 10% downpayment but allow up to 60 days if you apply EPF withdrawer to settle the 10%
3. Ok back with the booking receipt go apply for loan. (loan approval goes as fast as 3 days and can be as slow as 1 week.)
Banks like Standard Chartered gives you a good interest rate but the drawback is you need to pay a service fee of $10 every month and the maximum loan amount is only 89% and note 90%. Ok here is the tricky part..not every Standard Chartered bank or i would say not alll loan officer have the same rate..yes they have generic rate but is up to you to bargain..For example as of today the best rate is from Standard Chartered with BLR-2.1 up to the end of tenor (Standard Chartered should pay me for advertising for them!!) buti got it for BLR-2.05!!! So my advice is go up to different bank and get the quatation and if possible same bank get 2 quatation from different branch or officer. you will be surprise to see differrent rates. ( i will publish another article on housing loan later..they are a lot of loan out there and choosing the right one is essential..and no i am not a certified financial planner and it does not take a rocket scientist to understand all these..you just need interest)
4.Once your loan approve you can go sign Sales and Purchase. (1 day needed to sign and the bomb start ticking now..u need to settle the 10% downpayment of your house in 30 day or 60 day. they need 3 week to prepare sales n purchase document)
No they will not give the sales and purchase to you after you sign. They need 3 weeks to legalise it. 3 weeks if you are lucky and can be longer depending on the lawyer. This document is crucial to get the EPF (KWSP) withdrawer to settle your house 10% downpayment.
5. EPF money withdrawer (3 weeks)
After you get the sales and purchase agreement and you should have the letter of offer for the loan from bank then you can goto EPF office to withdraw the money. You need to fill up the EPF withdrawer form and the item above is mandatory!!! i better list it down.
a. Sales n purchase agreement - certified true copy
b. letter of offer (loan offer from bank) - certified true copy
c. bank statement - true copy or photocopy no need certify
d. photocopy of Identification card - they have a format to follow. the instruction is in the form
e. and the fill up form of course!!!
The maximum allowed of money taken from EPF are (10% of the downpayment + 10% of the house value) from your account 2
For example. your house is rm300k you 10% downpayment + 10% house values is approximately rm60k. There fore you are allowed to withdraw up to rm60k from your EPF account 2. If you have a wife you can have joint purchase and withdraw from both account but the maximum value you can withdraw is the same..rm60k (10% downpayment + 10% house value)
and for further details and the form you can go get from here:-
http://www.kwsp.gov.my/index.php?ch=p2members&pg=en_p2members_wdrawtype&ac=1850
6. So there you goes after the EPF is settle they will bank in the money direct to the bank account you specify. What and how you deal with the money no one cares..is up to you..if you decided to donate the money to me to have my own registered web site also can..:)
Ok that is the end of my rev 1.0 House buying guide in Malaysia dated 10 April 2008.
Good luck in finding your dream house!! Please give me comments below if you find my guide is good or bad. Thanks.
Here it goes:-
1. Find a developer or your dream house. (take your own sweet time the clock is not ticking)
2. Pay the deposit. (Ussually they give you 2 week to make up your mind. some is refundable some not)
They will give you a receipt of booking confirmation receipt.(very important)
You need this to apply for the loan. Dont sign the sales and purchase document before you check whether your loan will be approve or not!! otheriwse you will waste your booking fee as most developer will charge you 10% once you start signing the sales and purchase ageement and the clock is ticking. They will give you 30 days grace period to settle the 10% downpayment but allow up to 60 days if you apply EPF withdrawer to settle the 10%
3. Ok back with the booking receipt go apply for loan. (loan approval goes as fast as 3 days and can be as slow as 1 week.)
Banks like Standard Chartered gives you a good interest rate but the drawback is you need to pay a service fee of $10 every month and the maximum loan amount is only 89% and note 90%. Ok here is the tricky part..not every Standard Chartered bank or i would say not alll loan officer have the same rate..yes they have generic rate but is up to you to bargain..For example as of today the best rate is from Standard Chartered with BLR-2.1 up to the end of tenor (Standard Chartered should pay me for advertising for them!!) buti got it for BLR-2.05!!! So my advice is go up to different bank and get the quatation and if possible same bank get 2 quatation from different branch or officer. you will be surprise to see differrent rates. ( i will publish another article on housing loan later..they are a lot of loan out there and choosing the right one is essential..and no i am not a certified financial planner and it does not take a rocket scientist to understand all these..you just need interest)
4.Once your loan approve you can go sign Sales and Purchase. (1 day needed to sign and the bomb start ticking now..u need to settle the 10% downpayment of your house in 30 day or 60 day. they need 3 week to prepare sales n purchase document)
No they will not give the sales and purchase to you after you sign. They need 3 weeks to legalise it. 3 weeks if you are lucky and can be longer depending on the lawyer. This document is crucial to get the EPF (KWSP) withdrawer to settle your house 10% downpayment.
5. EPF money withdrawer (3 weeks)
After you get the sales and purchase agreement and you should have the letter of offer for the loan from bank then you can goto EPF office to withdraw the money. You need to fill up the EPF withdrawer form and the item above is mandatory!!! i better list it down.
a. Sales n purchase agreement - certified true copy
b. letter of offer (loan offer from bank) - certified true copy
c. bank statement - true copy or photocopy no need certify
d. photocopy of Identification card - they have a format to follow. the instruction is in the form
e. and the fill up form of course!!!
The maximum allowed of money taken from EPF are (10% of the downpayment + 10% of the house value) from your account 2
For example. your house is rm300k you 10% downpayment + 10% house values is approximately rm60k. There fore you are allowed to withdraw up to rm60k from your EPF account 2. If you have a wife you can have joint purchase and withdraw from both account but the maximum value you can withdraw is the same..rm60k (10% downpayment + 10% house value)
and for further details and the form you can go get from here:-
http://www.kwsp.gov.my/index.php?ch=p2members&pg=en_p2members_wdrawtype&ac=1850
6. So there you goes after the EPF is settle they will bank in the money direct to the bank account you specify. What and how you deal with the money no one cares..is up to you..if you decided to donate the money to me to have my own registered web site also can..:)
Ok that is the end of my rev 1.0 House buying guide in Malaysia dated 10 April 2008.
Good luck in finding your dream house!! Please give me comments below if you find my guide is good or bad. Thanks.
Comments
I would like to ask on the EPF withdrawal part. I am buying second hand from a previous houseowner (vendor).
I went to EPF and somehow they require the show proof of the Geran Rumah under the vendor's name in addition to the documents that you listed here.
Is it true?
Regards.
Charles A