Things You Need to Consider When Getting a Mortgage

Hello, Jason, the Mr Malaysian Real Estate here at your service. Well, well, well…looks like you are on your way to getting your very own home. Congratulations on this milestone in your life! One step at a time, little by little and you’re almost having your home sweet home. If you haven’t done so already, read my guide on selling your house for better perspective.

Have you fixed your mortgage plan yet? Have you decided which mortgage lender to go to? There’s just so many banks in Malaysia like Maybank, RHB, CIMB, Affin Bank and such. If mortgage and other related issues are yet a haze to you, maybe this list can help you arrange everything! Here are some of the most important things that you would have to consider and take note of before finalizing your decision and getting your home.

Getting A Mortgage In Malaysia – A Quickie Guide

  1. Price of the House – while the payment is mostly centered on the monthly dues you make to your mortgage lender, the sum price of the house will still matter. After all, it will still be a deciding factor on how much your monthly amortization would be, and basically the length of time you would have to pay for it. Make sure the price and fees – monthly and sum both – are still very much agreeable to your monthly income. Additionally, look for properties with good capital yields! Current I have got a cool Dua Residency (KLCC) apartment for sale by one of our long-time clients – give me a buzz if you want a viewing :)
  2. Credit Score – How much your lender is willing to give you – or whether or not your lender is willing to actually give you anything – depends largely on your credit score or credit rating. Prior to buying a house, as in years ahead, make sure your credit score is good. If you have had a bad credit rating in your history, make sure you fix that and clear your name up. Avail of amnesties on credit ratings, this will really come in helpful in getting your mortgage loan. Here’s a good resource on credit scores on Zillow – click here.
  3. Mortgage Lender – choosing the right money lender will make a whole lot of difference to your entire mortgage loan experience. Do not commit spot on to the first financing company you go to. Take the time to talk with them and clear everything that is hazy – monthly fees, duration of loan, penalties, repossession policies, and even their policies on changing your policies or moving to a place mid-contract. Make sure you understand everything. Compare the rates of interests among other things between lenders – this will help you get a better view of which lender to go to.
  4. Fixed Rate Mortgage vs Adjustable Rate Mortgage – fixed rate mortgages are the type of mortgage loans whose interest rates remain the same until the end of the contract. Adjustable rates, on the other hand, are mortgage loans whose interest rates rise after a period of time. The benefit of fixed rate loans is that the payment will remain the same through and through. The benefit, on the other hand of adjustable rate loans is that it is offered lower than current market rates and remains the same for some time. Both choices will be beneficial given the right circumstances and from the right financial lender.

A mortgage loan is no small thing. There is a lot of technical stuff to take in and one sitting may never be enough to understand it. Take time to talk with your lending consultant and even your real estate agent about it. They are those who can best explain everything to you. Have fun looking for your new home!

-Jason

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