Whether you want to buy a new home or refinance your current home, you’ll need to choose the housing loan that’s right for you. Let our mortgage broker help you to save time, stress and cash with our easy-to-access housing loan options. We serve variety choices of housing loan provided by local bank institutions to ensure you’ve got the best deal possible. Explore the Glossary to understand more about the home loan that you may acquire. [toggle title_open="Close" title_closed="Application Form" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A form to be completed when applying for housing loans, financing, or other banking products or services from banking institutions.[/toggle] [toggle title_open="Close" title_closed="Appraisal/Valuation Report" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A written analysis of the estimated value of real estate prepared by a licensed Valuer/Appraiser.[/toggle] [toggle title_open="Close" title_closed="Asset" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Any item of economic value owned by an individual or a corporation. Examples are cash, securities, accounts receivables, stocks, office equipment, houses, cars, and other properties.[/toggle] [toggle title_open="Close" title_closed="Base Lending Rate (BLR)" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A minimum interest rate calculated by banking institutions based on a formula which takes into account the institutions’ cost of funds and other administrative costs. Check the latest BLR rate [/toggle] [toggle title_open="Close" title_closed="Collateral" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Legal property, fixed deposits or other tangible securities charged to the financial institution for loan granted.[/toggle] [toggle title_open="Close" title_closed="Deposit" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Initial cash payment required to be paid before entering into the sales & purchase agreement.[/toggle] [toggle title_open="Close" title_closed="Disbursement Fee" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Various types of fees such as registration of charge fee, land search fee, bankruptcy search fee incurred by banking institutions and solicitors attending to the loan documentation, in relation to the loan, which are payable by borrowers.[/toggle] [toggle title_open="Close" title_closed="Documentation" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A set of agreements, forms, and other documents to be signed in connection with a loan. The documentation will form a full set of records for the loan. Housing Loan Application Documents Checklist[/toggle] [toggle title_open="Close" title_closed="Down Payment" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]An initial payment made by the buyer to the developer or seller of the property.[/toggle] [toggle title_open="Close" title_closed="Financing Tenure" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Number of years taken to fully pay the financing amount and profit margin as agreed under a specific payment programme.[/toggle] [toggle title_open="Close" title_closed="Fixed Rate Loan" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A term used to describe a loan, where interest charged is fixed throughout the tenure of the loan.[/toggle] [toggle title_open="Close" title_closed="Flat Rate" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A term to describe interest that is charged as a fixed percentage of the loan amount throughout the tenure of the loan. The flat repayment amount is usually determined before the commencement of the repayment programme. For example, interest charged on a RM 10,000 loan at a flat rate of 10% per annum is RM 1,000 annually until the loan is fully settled.[/toggle] [toggle title_open="Close" title_closed="Floating Rate Loan" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A term used to describe a loan, where the interest charged fluctuates due to the rise and fall of a certain indicator such as the Base Lending Rate.[/toggle] [toggle title_open="Close" title_closed="Foreclosure" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Legal action available to the banking institution for recovering outstanding sums owed by a borrower who has defaulted on his/her loan. The property pledged by the borrower to secure the loan is sold and the proceeds of the sale used to settle the outstanding loan amount.[/toggle] [toggle title_open="Close" title_closed="Graduated Payment" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A scheme that allows the borrower the flexibility to pay a lower instalment sum at the beginning of the loan tenure before progressing onto a higher instalment sum as the borrower’s purchasing power improves.[/toggle] [toggle title_open="Close" title_closed="Gross Monthly Household Income" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]The sum of gross monthly pay of all working family members before deducting income tax, Socso, EPF, loan instalment or other deductions plus any additional income from overtime, commissions and other sources.[/toggle] [toggle title_open="Close" title_closed="Guarantor" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Person or entity who is legally bound to pay a debt incurred by the borrower if that borrower fails to pay.[/toggle] [toggle title_open="Close" title_closed="Houseowner Insurance" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]An insurance policy that combines liability coverage for a homeowner together with protection from damages caused by wind, fire, vandalism and other risks. Mortgage Term Assurance Comparison - MLTA vs MRTA[/toggle] [toggle title_open="Close" title_closed="Installment" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Monthly payment that the borrower has to pay to the banking institution as stated in the loan or financing agreement.[/toggle] [toggle title_open="Close" title_closed="Interest Rate" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]The amount charged by the lender to the borrower for borrowing a sum of money expressed as percentage of sum borrowed.[/toggle] [toggle title_open="Close" title_closed="Late Chargers" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A penalty charged by banking institutions for not paying instalment due on time.[/toggle] [toggle title_open="Close" title_closed="Late Payment Chargers" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Interest charged on the overdue instalment payment, calculated on a daily basis.[/toggle] [toggle title_open="Close" title_closed="Legal fee on Loan Agreement" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Legal fees incurred for loan agreement. The current rate is 1% for the first RM100,000 and 0.5% for the next RM4,900,000. Calculate Mortgage Legal Fees[/toggle] [toggle title_open="Close" title_closed="Loan Lock in Period" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]This is the minimum period borrowers are required to maintain their loans with banking institutions without being subjected to any penalty.[/toggle] [toggle title_open="Close" title_closed="Loan Tenure" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Number of years taken to fully repay the loan principal and interest as agreed under a specific repayment program.[/toggle] [toggle title_open="Close" title_closed="Margin of Financing" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"] The loan amount granted by the banking institution, expressed as a percentage of the value of property pledged to secure the loan.[/toggle] [toggle title_open="Close" title_closed="Monthly Rest Interest" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"] Interest on housing loan calculated on a monthly basis based on current outstanding balance.[/toggle] [toggle title_open="Close" title_closed="Mortgage Reducing Term Assurance (MRTA)" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"] A term insurance which reduces over the tenure of the loan. This form of insurance is used to provide cover for the outstanding loan amount, in the event of death or total permanent disability of the insured. MRTA is normally calculated to meet the outstanding loan amount.[/toggle] [toggle title_open="Close" title_closed="Net worth analysis" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A method to determine one’s net assets by comparing total assets against total liabilities. [/toggle] [toggle title_open="Close" title_closed="Non-Zero Entry/Moving Cost Loan Package" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A loan package where borrowers have to pay for all charges and fees involved in obtaining / refinancing a loan, such as legal fees, stamp duty or disbursement charges. [/toggle] [toggle title_open="Close" title_closed="Offer Period" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]The availability period for the housing loan package. [/toggle] [toggle title_open="Close" title_closed="Outstanding Loan" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Remaining loan not yet paid, including interest and other charges. [/toggle] [toggle title_open="Close" title_closed="Overdraft" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A type of credit facility granted to the eligible current account holder. The borrower is allowed to issue cheques exceeding the credit balance in the current account but subject to a certain pre-approved limit granted by the financial institution. [/toggle] [toggle title_open="Close" title_closed="Power of Attorney" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A formal legal document giving authority to one person to act on behalf of another person. [/toggle] [toggle title_open="Close" title_closed="Property" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]Landed properties such as houses, apartments and condominiums, and land such as bungalow lots. [/toggle] [toggle title_open="Close" title_closed="Refinancing" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]The process of paying off a portion or the entire amount of the existing loan with the intention of obtaining another loan from the same or another banking institution. Housing Loan Refinance[/toggle] [toggle title_open="Close" title_closed="Repayment Mode" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"] Fixed monthly repayment A scheme that allows borrowers to pay a fixed instalment sum every month until the end of the loan tenure. Flexi monthly repayment A scheme that allows borrowers to repay a higher repayment amount than its monthly instalment anytime without the need to seek banking institutions’ approval. [/toggle] [toggle title_open="Close" title_closed="Sale and Purchase Agreement" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A written contract signed between the intended buyer of the property and the developer or seller of the property, stating among others, the terms and conditions under which the property will be sold.[/toggle] [toggle title_open="Close" title_closed="Selling Price" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]The price agreed for the Islamic banking institution to sell the property back to the customer which consists of the Islamic banking institution’s purchase price (financing amount) plus its profit margin.[/toggle] [toggle title_open="Close" title_closed="Stamp Duty on Loan Agreement" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]The duty payable to the Government (Stamp Office) for the stamping of an agreement, in this case, the Loan/Facility Agreement. Duty payable is based on the loan/facility amount. Housing Loan Stamp Duty [/toggle] [toggle title_open="Close" title_closed="Title" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A legal document establishing the right of ownership on a property. [/toggle] [toggle title_open="Close" title_closed="Valuation Fee" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"]A fee charged by property valuers to appraise the properties. The valuation fees start from a few hundred ringgit upwards, depending on the value of the properties. [/toggle] [toggle title_open="Close" title_closed="Zero Entry/Moving Cost" hide="yes" border="yes" style="default" excerpt_length="0" read_more_text="Read More" read_less_text="Read Less" include_excerpt_html="no"] A loan package where banking institutions financed certain types of fees and charges incurred by borrowers. Examples of these fees and charges are legal fees, stamp duty or disbursement charges. These costs however, exclude stamp duty and legal fees, pertaining to Transfer of Ownership (Memorandum of Transfer) and maintenance / administration fees imposed by developers (components of the costs vary between banks). [/toggle]
View original post: Home Loan Glossary
No comments:
Post a Comment