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1.Have Adequate Down Payment
(5% to 15% of purchase price)
Sign booking form and pay 1% to 2% earnest deposit (booking fee);
Required to pay the remaining down payment that adds up to the total of 10% of purchase price;
Need to finance the rest of the purchase price with a bank loan
2.Estimate How Much You Can Borrow
Debt Service Ratio (DSR)
DSR is equal to your total monthly debt repayment, obligations divided by monthly take-home income (that’s after tax & EPF);
Bank Negara required the bank not to lend borrower more than 60% DSR;
If your home take pay is RM5,000/month, you will be able to serve a loan payment of RM3,000 (not recommended to go for the limit);
Keep your DSR under 30% (and this 30% should include your car loan);
Depending on the loan tenure, the younger you are, the longer term you can take, probably up to 30-40 years to completely pay up the mortgage.
3.Understand How Much You Can Afford
A Thorough Calculation Is Recommended Other related expenses
The maintenance fee (in gated & guarded community or high rise building);
Yearly fire insurance premium, quit rent and assessment;
Regular expenses such as sewage, water & electricity bill, the initial deposits for all these utilities;
Need to understand that your expenses will increase when you are staying at your own house, compare to staying with your parents or renting a place.
4.Transaction Cost
SPA stamp duty rates
1st RM100,000 = 1%
Next RM100,001 to RM500,000 = 2%
Next 500,001 to RM2,000,000 = 3%
Above RM2,000,000 = 4%
Loan Agreement stamp duty rates is 0.5% for any amount.
Solicitors cost
For the first RM150,000 = 1% (subject to a minimum fee of RM300)
For the next RM850,000 = 0.7%
For the next RM2,000,000 = 0.6%
For the next RM2,000,000 = 0.5
For the next RM2,500,000 = 0.4%
Where the consideration or adjudicated value is in excess of RM 7,500,000
Negotiable on the excess (but shall not exceed 0.4% of such excess)
5.Get Ready With Renovation & Furnishing Cost
Ready with a minimum fund to cover this inevitable expense.