Q.
How do you best benefit from housing loans?
A.
- 1st and 2nd loans - up to 90% of the value of the property (residential).
- 3rd and beyond - up to 70% of the value of the property (residential).
If you have loans paid off, you will not count the property paid off. Meaning, you only use this allocation on existing loans. Those paid off will be taken off from this list, irrespective of how many properties. For example, 5 paid off 3, you can get 90% loans for the 2 existing properties. However, it has to wait until the record is updated in CTOS or CCRIS.
Third thing is that all loans are counted. Despite being join borrower, it is considered as still your loan. So, you have 3 properties, you join name for 2 properties, the 4th property is still considered as property No.4, NOT No.2. However, if one of the loans is Government Loan (LPPSA - Lembaga Pembiayaan Perumahan Sektor Awam), then it is a bit different. The Government Loan will itself stand at 100%, no matter which property it is. However, it will still follow the rule of first 2 properties at 90%, like the two scenario below:
- Property 1 - Government Loan - 100%
- Property 2 - Bank Loan - 90%
- Property 3 - Bank Loan - 70%
If you MOVE Government Loan to Property 3, then
- Property 1 - Bank Loan - 90%
- Property 2 - Bank Loan - 90%
- Property 3 - Government Loan - 100% (instead of 70%)
Some government loans (old ones) do not show in CTOS or CCRIS. Hence, the bank only get to know when you submit your payslip.
Therefore, you can strategize your maximum loan.