When looking for your dream home, the most important thing to do is research and look for a home that fits your needs and affordability. An easy way to help you remember what to look for is to use Myra’s SCALP!
S :  Size and Space - Size matters because your family needs room!
C :  Community - Consider a community that is safe and suits your lifestyle.
A :  Amenities- Look for amenities such as schools, banks, grocers, and restaurants!
L :  Location - Where do you need your home to be near at?
*A good location will increase the appreciation of your home!*
P :  Price - The biggest consideration. Find The One you can afford!
How much should you commit to The One? Myra’s Golden Rule is here to help!
It’s where your home loan instalment should sit below 40% of your nett income!
•Let’s say you earn a monthly nett income of RM5000
•40% of Nett Income = RM2000
•So your monthly home loan repayment should not exceed RM2000!
•A monthly repayment of RM2000 = a RM500K home!
Once you’ve found the home that you’re willing to commit to, you’ll need to pay a booking fee to reserve your unit. This ranges from RM500 to 5% of the purchase price! (Don’t forget to check if it’s refundable!)
To get a loan, you’ll need to do a credit check which you can get it from Bank Negara. This report will show all the debt you have and how well you’ve been paying them off. So if your credit score isn’t where you want it to be, it’s time to work on that! Here are some useful tips on how to improve your credit score from Myra.
You will need a good 10-12 month record to improve your loan approval!
Besides your credit score, the banks will do a calculation called the Debt Service Ratio (DSR) which measures your commitment against your income. If it’s time to make the banks love you, follow this “How to Woo the Banks” guide and try out Myra’s Super Calculator!
The lower the DSR %, the higher your chances are in getting a loan.
Myra’s Golden Rule suggests that you keep your commitments below 60% in general!
It’s time to shop! Don’t pick the first loan you get as there are other options too! Remember to research, compare, and stick to your budget. Be sure to check out “Myra’s Guide to Housing Loans” and don’t forget;
•Longer Loan = Lower monthly repayments but with a higher total interest
•Shorter Loan = Lower interest in total but has a higher monthly repayment
The most important document is your Sales and Purchase Agreement (SPA) because this document protects your rights as a homebuyer. It is crucial that you understand the contents of the document before you sign!
Developers will have a panel of lawyers who will be there at the signing. Alternatively, you may get your personal lawyer! But be sure to ask them any questions for clarification.
The SPA protects your rights as a homebuyer as the developer will need to fulfill everything that’s stated in it. Both parties must respect the terms!
Here comes the hidden costs that many don’t know about and they’re calculated based on the price of your house. These costs fall under 2 categories; stamp duty (which is a tax by the government) and legal fees.
•Memorandum of Transfer (MOT)
•Memorandum of Charge (MOC)
•Loan Stamp Duty
•Sales and Purchase Agreement (SPA)
•Loan Legal Feesy
To get an accurate figure, check out Myra’s Super Calculator!
Your home’s construction will be broken down into stages. When each stage is completed, the bank will release a bit of your loan amount to the developer until your home is completed! As the bank releases the $$, you’ll need to pay something called progressive interest.
These stages and amounts are set by the Ministry of Housing and Local Government (KPKT). This is called Progressive Billing, and the interest payments you’ve made will help reduce the original loan amount and interest charged on top of it earlier!
To make sure that your home is fit to live in, the officials will need to certify your home with the Certificate of Completion & Compliance (CCC)!
Factors that will be looked into are:
It’s Vacant Possession time! This is when you collect your key and you get a warranty called the Defect Liability Period (DLP), where the developer is responsible to fix any defects in your home for free!
DLP Period: 24 Months
DLP is only for homeowners who have bought their house before CCC!
But remember, your DLP becomes void if you do any major renovations to your home.