The mortgage game has always been a bit of a minefield. The competition is fierce, and the rules are constantly changing.
Getting a mortgage loan can be a bit of a hassle, and even a daunting experience if you don't know what you're doing.
Property guru, Miichael Yeoh, shares his tips and guides on what might just help you get your loan approved. With over 22 years of experience in the property, mortgage and investment industry, shares his knowledge from his vast banking and property experience.
Everyone has their own set of concerns when it comes to getting a mortgage loan. Some people are worried that they won't be approved for a loan, others are concerned about the amount they can afford, and still, others are concerned about the interest rate they'll be paying. Whatever your concerns are, we're here to help you prepare for your first home loan.
“I want to borrow, what can I do?”
The first step is to understand what you're getting yourself into. While it might seem obvious, it's important to understand the importance of financial planning. Not only does it give you an idea of what you can afford, but it also shows you where your money is going and where you need to adjust it.
When you have a plan in place, it reduces the amount of stress you have when it comes to getting a mortgage loan.
When it comes to getting a mortgage loan, banks care a lot about your standing, ability to pay, and your current debt repayment. Banks are constantly monitoring both current and future job security. This means that when you apply for a mortgage, they will look at your employment history to make sure that you'll be able to make your payments on time.
Calculate your Debt Service Ratio(DSR)
The debt service ratio (DSR) is a formula used by banks to determine whether or not you can afford the loan you're looking for. The lower your DSR, the higher your chances are for loan approval.
Here’s a guide on how to calculate your DSR:
Source: Miichael Yeoh
The techniques of calculating differ from one bank to the other. Your DSR at Bank X may be as low as 40%, whereas at Bank Y, it could be as high as 70%.
Banks have a lot of leeway when it comes to determining borrowers' income sources and the acceptable debt-to-service ratio (DSR). However, in some cases, your bank may be able to grant you a 100% loan regardless of your DSR. This is based on a case to case basis and will depend on the circumstances of your application.
Get your CCRIS report
The Central Credit Reference Information System (CCRIS) is a system developed by the Credit Bureau of Bank Negara Malaysia (BNM) to generate standardised monthly credit reports on potential borrowers. This allows financial organisations and lenders to effectively analyse a potential recipient's credit worthiness by referring to their financial history.
This is a list of platforms that allows you to check your CCRIS report:
Getting a personal loan may not be as easy as it first appears, but following these guidelines just might help you. We recommend that you conduct your own research and apply to the lender that best matches your qualifications and criteria.
Head to Property Hunter’s Facebook page to watch Miichael Yeoh share his loan approval tips at https://fb.watch/d5J9YoD4q0/.