Unless you’re born with a silver spoon in your mouth, a mortgage loan for a property is a decades-long commitment, one that you may not be able to qualify for by yourself at the present time. When that happens, you can choose to either wait a while longer to build up your savings and credit rating, or to co-sign a loan with someone, usually a family member or someone you trust.What Co-Signing Means
A co-signed loan is, as its name implies, a loan that is taken out by more than one person, up to a maximum of six. Joint home loans can only be obtained by an applicant and their spouse, parents, or siblings. Unless your co-signees are genuine Good Samaritans [...]
Congratulations! You’ve made it this far on your own earning power, loans, and familial aid, and you’ve yet to sink the financial boat. That must mean you’re doing something right, right? But how right are you, and is there anything you can do better? Ask yourself these questions and see!Compound Interest
Both you and your friend aim to open a savings account with an interest of 3.15% per month. You opened one at 21 years old, deposited RM20,000 in it, and let it be for 10 years. Your friend opens one at 25 years old, deposits RM5,000 in it, and continues to bank in RM350 every month. Who has more money when you reach 30 years old, assuming both of you are [...]
If you’re new to real estate with a small fund to start with, you’re probably worried about the high loan rejection rates by Bank Negara Malaysia, which is reportedly as high as 70%, although several states such as Penang has tried to overcome this problem by creating new, lower-value categories of affordable housing, for starters, and parties have been mulling the reintroduction of DIBS (Developers Interest Bearing Scheme). Even without intervention from the government, though, you yourself have the ability to influence your loan application’s success rate, and part of that can be achieved by making a bigger down-payment.Higher Chances of Approval
Your credit score reflects your ability and reliability to repay your debts. Lending institutions, largely banks, use your credit score to determine your eligibility for loans and the interest rates you’ll receive, among other perks. That’s all you need to know about it…or is it really? What if what you think you know is actually wrong?Myth 1: Going Cash-Only Ensures a Good Credit Score
Sure, dealing entirely with hard cash is one way to not fall into debt, but it proves absolutely nothing to creditors regarding your ability to repay credit.
Your credit score is zero because you’re not dealing with credit at all! For some of us, going cash-only [...]