Investing in real estate is a tried and tested way of building wealth. Compared to other types of investments, real estate can guarantee better yields because you can generate from rental income and profits out of price appreciation.
However, buying your dream house is not as easy as it looks. If you are a first-time home buyer, you will be surprised by how much money is needed to have your dream home. In most cases, you have to settle a certain amount for the downpayment. Then add the hidden costs or the ancillary costs as they are called. If you cannot wait to purchase your home, a housing loan can be of great help.
Housing loans in Malaysia vary from bank to bank, but in usual scenario, applications have the same reasons why they get approved or denied. Below are the surefire ways to get your mortgage loan approved in no time:
- Make sure you are eligible for a housing loan
Most banks require that you are at least 18 years old but not more than 70 years old. It is also important that you have a source of income. If you are self-employed, it is necessary that you have a regular income.
- Choose a longer tenure
Increase your chances of getting approved by setting a longer tenure. You can apply for up to 35 years. You will have lesser monthly repayments when you set a longer housing loan term.
- Submit all the required documents in the given timeframe
Show your Identity Card as well as clear copies of relevant documents, such as the Individual Title Deed, and proof of employment.
- Get a co-applicant
When you make your spouse or a parent as a co-borrower, both of your incomes will be computed. This is a good option if your salary does not equal to the minimum income required by the bank.
- Prepare the downpayment
Banks do not lend a hundred percent of the property costs. They can only let you borrow around 80 to 90 percent of it, so get cash in handy. For example, you need to ready at least RM20,000 if the cost of a property is RM200,000.
Take note that you can use a housing loan not just for a new house purchase. It can also be used for construction, renovation, and overseas property. If you have a lot where you are planning to a build your dream home, you can apply for a construction loan.