Changing banker for housing loan.

[john_unai]

I submit a housing loan application to banker A. He promise me of 90% of the house value loan and legal fee to be included for the loan approval. When the loan approved, its only 89% and legal fee is not included in the loan which mean i need to fork out cash of 11% and legal fee. When I ask him why only 89% approved, he said 'dunno, this is hong leong bank policy'. Since I'm not happy with his service, I was thinking to change for another banker from the same bank branch and resubmit my loan application. Is this possible? :questionmark::questionmark:

 

[Izso]

I submit a housing loan application to banker A. He promise me of 90% of the house value loan and legal fee to be included for the loan approval. When the loan approved, its only 89% and legal fee is not included in the loan which mean i need to fork out cash of 11% and legal fee. When I ask him why only 89% approved, he said 'dunno, this is hong leong bank policy'. Since I'm not happy with his service, I was thinking to change for another banker from the same bank branch and resubmit my loan application. Is this possible? :questionmark::questionmark:

If you haven't signed any documents, then yes you can reject the offer and resubmit with another bank.

 

[john_unai]

I mean resubmit to the same bank but different banker. I haven't sign it yet.

 

[Izso]

I mean resubmit to the same bank but different banker. I haven't sign it yet.

No point. The banker gets their advice from HQ. Unless you know someone in the approval process, the result will likely be the same. You're better off asking another bank. If HL ask you why, you can blast them and say they aren't offering what they said they would hence you rejecting them. Most of the time HLB will try to renegotiate with you, if they do tell them you want them to cover legal fees as originally agreed and 90%. If they can't then just bring your business elsewhere. No need to be nice to them. But be polite.

 

[john_unai]

Thanks for the advice, bro. I've complained to the banker and now in process to renegotiate with the bank. Now very busy with work and really no time to go around checking other bank while the house seller is chasing my ass since he already have another buyer queuing if my loan is not approved. Haizz!!

 

[KenDiriwan]

Take some day off to settle ? I mean how often you get into house thing processing, once done you don't worry for years unless you are ready to afford another unit.

 

[gunnerzz]

U have the right to know why the bank cant give u 90% + legal fee.

In my opinion the officer u r dealing with is either a newbie or a lazy one as 89% and 90% loan has little effect to the installment and DSR calculation.
his practice of promising the goodstuff is not professional when he knew he does not have the approving power.bankers nowadays are just some unethical person,some of them not all.
Before anyone said i am anti banker...i am a former banker.

about the loan
discuss with him why the loan cant be approved according to your criteria.ask for calculation to support the fact.
imho when u want to capitalise the legal fee it show that u cant afford the house.no offence but thats how bankers think.unless u r a high net customer.

i am guessing the legal fee once included increases the dsr into umcomfortable figure for the bank.
bear in mind there is no 100% financing or loan.its banned by bnm.
max loan is 90%.additional 5% is for mrta and other fee.
so its 90%+5%.

U should confirm what is the value of the house as valued by the bank's valuer.90% is based on that value and not the seller's price.
If everything is in order u can appeal at the same bank and provide additional doc if u have.this method is quicker than applying at another bank.u can also appeal and apply at another bank.

on the seller....just relax.tell him yr loan is approved but not up to what u expect and u r negotiating with the bank.also tell him that if he want to let other buyer buy it it will take longer as they havent submitted doc.plus,its not like he will get his money when the lo is sign,heck not even within a month.

 

[vr2turbo]

Loan interest also differs from bank to bank, right?

 

[john_unai]

U have the right to know why the bank cant give u 90% + legal fee.

In my opinion the officer u r dealing with is either a newbie or a lazy one as 89% and 90% loan has little effect to the installment and DSR calculation.
his practice of promising the goodstuff is not professional when he knew he does not have the approving power.bankers nowadays are just some unethical person,some of them not all.
Before anyone said i am anti banker...i am a former banker.

about the loan
discuss with him why the loan cant be approved according to your criteria.ask for calculation to support the fact.
imho when u want to capitalise the legal fee it show that u cant afford the house.no offence but thats how bankers think.unless u r a high net customer.

i am guessing the legal fee once included increases the dsr into umcomfortable figure for the bank.
bear in mind there is no 100% financing or loan.its banned by bnm.
max loan is 90%.additional 5% is for mrta and other fee.
so its 90%+5%.

U should confirm what is the value of the house as valued by the bank's valuer.90% is based on that value and not the seller's price.
If everything is in order u can appeal at the same bank and provide additional doc if u have.this method is quicker than applying at another bank.u can also appeal and apply at another bank.

on the seller....just relax.tell him yr loan is approved but not up to what u expect and u r negotiating with the bank.also tell him that if he want to let other buyer buy it it will take longer as they havent submitted doc.plus,its not like he will get his money when the lo is sign,heck not even within a month.

Everything was in order, house seller's selling price is within what the bank valuer quote.
And when i apply for the loan, i was promised by the banker for 90% + legal fee included. I didn't buy the insurance from the bank, buy it outside is cheaper. When d approval come, the banker cannot explain why the bank only approved 89%. So, i renegotiate lor. Yesterday, the renegotiation result come out and d bank maintain the same loan approval.

Dunno why not approved since base on calculation for my commitment from d bank, i can get at least 1900 of monthly installment but d house installment is less than 1500.

What i don't like about d banker is he cannot explain this 89% loan approval and all he can say is ' I dunno, this is approval from HQ'. the worst case is he even go and inform the house seller that my loan is already approved, then d house seller called me and ask why i did not accept the offer since its already approved. Does he has the right to give this information to the seller? Dats the reason i want to change my banker from the same bank but i dunno if it allowed.

Actually there is 100% financing for 1st house buyer like me but the term & condition make it almost impossible to get the approval.

Loan interest also differs from bank to bank, right?

Yup bro, I've checked and the BLR rate ranged from 4.45 to as high as 4.8 in some bank.

 

[vr2turbo]

If you have the time can try another bank, but since the seller is chasing you, is your call whether to take or not?

 

[gunnerzz]

Bro blr or bfr is at 6.85 right now.
I believe the 4.45 or 4.85 is the package they offer u.
bfr or blr increses,yr installment will follot suit.dont listen to bs telling u for islamic financing the installment is fixed.

the 100% financing is a gomen scheme under cagamas.bank cant offer such scheme.

did i as the banker to show u the dsr calculation?
Do remember some bank take residual income very seriously.

 

[john_unai]

yup, d 100% is under cagamas for 1st buyer. HLB offer me 4.5 because i didn't take d insurance, if take insurance is 4.45. Yesterday i did survey to all bank available in my place and i guess i will take dis HLB offer. the banker oso did show me the dsr calculation.

 

[DanzEterna]

yes u can change bank, if the other bank ask u y reject the previous loan, u need to state that they give u lower loan margin & their customer service not satisfactory.

 

[gunnerzz]

yup, d 100% is under cagamas for 1st buyer. HLB offer me 4.5 because i didn't take d insurance, if take insurance is 4.45. Yesterday i did survey to all bank available in my place and i guess i will take dis HLB offer. the banker oso did show me the dsr calculation.

Congrats on yr new home then.
anyway,lowest interest does not mean the best package.have to read the fine line.banks are running business and if they charge u very low interest then how to make profit right?4.5% is not purely profit,have to deduct cost of fund oso abt 3.95%.

Now,when dealing with lawyers do ask for discount on the legal fee.i have seen 30% off,maybe someone else seen higher discount.

Oso,kaw2 ask gift from the banker since he did not give what he promise...hahaha

 

[john_unai]

yup, i was interested in the hsbc full flexi loan even though the interest rate is slightly higher by 0.1 but their valuation cannot meet the owner selling price. thanks for d advice bro, really appreciate it as a 1st house buyer with no experience. sumore, i have to go settle all by myself since i didn't use agent. wat gift i can ask ar?? hehe

 

[gunnerzz]

Anything u want...
Umbrella is common.ask for backpack or laptop bag.
most probably next year diary has arrived so ask for that.
if happen there is a display rack in the bank then ask for anything u see in the display.last time hong leong have this small yet elegant small clock to put on the table.
Dont be shy despite what people said,u have the right.
fyi,the bank does have gift from a simlle pen to premiun item.They will try not to give to cust and in the end they share it among themselves.

btw,how about the processing fee?
U can ask for waiver.

on the lawyer,u can bring your offer letter and ask around for quotes if u have the time.better option is to go for the bank's panel as they are familiar with the bank's documentation.

on your epf withdrawal if u want to,just bring the letter offer and your stamped s&p to nearest epf office.bring along your prefered ac passbook or if passbookless brings an account confirmation from the bank.

 

[john_unai]

I see.. I will ask the banker for the processing fee waiver. I will take the bank's panel lawyer for the s&p preparation and then withdraw my epf saving once all is ready. The banker did inform me on the discount for 1st house buyer on stamping. Any other fee that i can ask for waiver or discount?

 

[gunnerzz]

If not mistaken the discount on stamping is for islamic financing only so i believe yours is islamic package then.

things u can ask for waiver or discount:
1.processing fee-waiver
2.legal fee s&p-discount
3.legal fee documentation-discount
4.valuation fee-waiver of valuation process or if not allowed then discount on the fee 30%-40%.most of the time they gave 20%.

u should ask in detail what are the fees involve in yr loan.
i seperate the legal fee as most of the time they refered it as one so u wont know how much they charge for each process.

 

[vr2turbo]

on your epf withdrawal if u want to,just bring the letter offer and your stamped s&p to nearest epf office.bring along your prefered ac passbook or if passbookless brings an account confirmation from the bank.

EPF withdrawal after getting the loan? Last time when I bought my unit some time ago, I applied for EPF maximum withdrawal, then cover with bank loan for the balance....:hmmmm:

 

[john_unai]

EPF withdrawal after getting the loan? Last time when I bought my unit some time ago, I applied for EPF maximum withdrawal, then cover with bank loan for the balance....:hmmmm:

there are few types of epf withdrawal for house buying. If i have a lot of epf saving, I will do the same. the problem is my epf acc 2 saving is not even 10% of the house value that i want to buy.hehe