{"id":4550,"date":"2022-06-20T15:01:24","date_gmt":"2022-06-20T07:01:24","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=4550"},"modified":"2022-06-20T20:23:47","modified_gmt":"2022-06-20T12:23:47","slug":"home-loan-mistakes","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/home-loan-mistakes","title":{"rendered":"5 Common Home Loan Mistakes To Avoid"},"content":{"rendered":"<p>Taking a home loan? Here are 5 common mistakes that people make especially when they\u2019re applying for it for the very first time. Read on so you can avoid these pitfalls too.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Diving-in-when-youre-not-qualified\"><\/span><strong>Diving in when you\u2019re not qualified<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Banks, by nature, are generally eager to offer property loans to qualified homebuyers. The keyword, though, is \u201cQualified\u201d. In Malaysia, a qualified housing loan applicant generally refers to one with the appropriate Debt Service Ratio (DSR) and has no red marks on the Central Credit Reference Information System (CCRIS) report collated by Bank Negara. If you don\u2019t fit the criteria, they\u2019ll have no problem rejecting your application. So before you apply you\u2019ll want to make sure you\u2019ve done the necessary preparations and are not fighting a lost cause right from the start.<\/p>\n<p><strong>Tips on DSR and CCRIS<\/strong><\/p>\n<ul>\n<li>You can easily check your DSR by dividing your total monthly debt or loan commitment (including the loan you plan to take) against your monthly income. Say the bank has a DSR requirement of 50% and your monthly income is RM10,000; you\u2019re considered a qualified candidate if your total loan or debt commitment is RM5,000 or less.<\/li>\n<li>You can make sure your CCRIS is clean simply by servicing all your existing loans, debts and credit card bills on time.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Going-straight-for-the-lowest-interest-rate-and-nothing-else\"><\/span><strong>Going straight for the lowest interest rate and nothing else<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You\u2019re going to borrow a big sum of money. Obviously, you\u2019ll sign up with whoever that offers you the lowest interest rate. Right? To a certain extent, it is. Your priority should definitely lies with getting the lowest possible interest rate, but you shouldn\u2019t forget about things like margin of finance, lock-in period, and simple stuffs like making sure a branch is within your vicinity.<\/p>\n<p>For a list of things you should consider when chosing your home loan, check out <a href=\"https:\/\/www.imoney.my\/articles\/types-of-home-loans-in-malaysia\" target=\"_blank\" rel=\"noopener\">which type of home loan is right for you<\/a> to find out more.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Applying-with-just-one-bank-and-telling-them-so\"><\/span><strong>Applying with just one bank and telling them so<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In Malaysia, it has become a general practice for seasoned homebuyers to \u201cshop around\u201d for the best loan package before committing to one.\u00a0 Apply with only one bank, and what you\u2019re really doing is giving yourselves no other options even if the terms offered to you are appallingly bad.<\/p>\n<p>The even worse mistake you could be making is telling a loan officer that \u201cthey are the only bank you\u2019re applying with\u201d. It\u2019s pretty much the same as giving them the license to give you the worst possible rate, because they\u2019d know you have no where else to turn to as the 2-or-3-weeks deadline you\u2019re usually given by the housing developers runs down.<\/p>\n<div class=\"block\"><div>Compare more home loan options and calculate your monthly repayments options <a href=\"https:\/\/www.imoney.my\/home-loan\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/div><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Not-factoring-in-your-home-loan-costs\"><\/span><strong>Not factoring in your home loan costs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Property financing involves fees, charges and even home insurances that may come as a surprise for the inexperienced homebuyers. Some banks absorb part of these charges, whilst others may not. Most homebuyers have limited funds (and hence the need to take a loan), so it is imperative that you understand these charges involved before you commit.<\/p>\n<p>There are various fees and charges home buyers must take into consideration when buying a property. Check if you are financially ready to buy a house in Malaysia before taking the plunge.<\/p>\n<p><a href=\"https:\/\/www.imoney.my\/articles\/buy-house-in-malaysia\" target=\"_blank\" rel=\"noopener\"><strong>Read more: Are You Financially Ready To Buy A House In Malaysia?<\/strong><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Not-reading-the-terms-conditions\"><\/span><strong>Not reading the terms &amp; conditions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before making any financial decisions, it is important to read all the fine prints. This goes for your loan agreement as well. If you don\u2019t have the capacity to do so, make sure you get the loan officer to point out all the things that matter (such as loan amount, interest rate, instalment amount, loan period, margin of finance, lock-in period, early settlement penalty and fees and charges).<\/p>\n<p>The general rule is\u00a0if it doesn\u2019t appear in your agreement, it doesn\u2019t take effect. Period. So if your housing loan shows a lock-in period of three years while your officer is telling you it\u2019s one year, the former wins. All the time.<\/p>\n<p>Getting a property of your own is great but make it greater without making these mistakes.<\/p>\n<p>Find out how affordable are Malaysian homes in different parts of the country. Use our interactive map <a href=\"https:\/\/www.imoney.my\/articles\/average-home-prices-malaysia\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Choosing a home loan can almost be as hard as choosing the property itself!<\/p>\n","protected":false},"author":1,"featured_media":53151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[239,21],"tags":[365],"class_list":["post-4550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-loan","category-properties","tag-property"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 Common Home Loan Mistakes To Avoid<\/title>\n<meta name=\"description\" content=\"You will need to commit to this loan for more than 20 to 30 years so make sure you read the fine print before choosing your home loan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.imoney.my\/articles\/home-loan-mistakes\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Common Home Loan Mistakes You Should Avoid\" \/>\n<meta property=\"og:description\" content=\"You will need to commit to this loan for more than 20 to 30 years so make sure you read the fine print before choosing your home loan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.imoney.my\/articles\/home-loan-mistakes\" \/>\n<meta property=\"og:site_name\" content=\"iMoney Malaysia\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-20T07:01:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-20T12:23:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2013\/04\/20201122\/new-house-.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"iMoney Editorial\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"iMoney Editorial\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.imoney.my\/articles\/home-loan-mistakes\",\"url\":\"https:\/\/www.imoney.my\/articles\/home-loan-mistakes\",\"name\":\"5 Common Home Loan Mistakes To Avoid\",\"isPartOf\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/home-loan-mistakes#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/home-loan-mistakes#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2013\/04\/20201122\/new-house-.jpg\",\"datePublished\":\"2022-06-20T07:01:24+00:00\",\"dateModified\":\"2022-06-20T12:23:47+00:00\",\"author\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/2dc429bac9840e75ad08ab242c57dcbb\"},\"description\":\"You will need to commit to this loan for more than 20 to 30 years so make sure you read the fine print before choosing your home loan.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/home-loan-mistakes#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.imoney.my\/articles\/home-loan-mistakes\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.imoney.my\/articles\/home-loan-mistakes#primaryimage\",\"url\":\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2013\/04\/20201122\/new-house-.jpg\",\"contentUrl\":\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2013\/04\/20201122\/new-house-.jpg\",\"width\":1200,\"height\":630,\"caption\":\"Image source: Asian family photo created by tirachardz - 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