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 [...]
The loan-to-value (LTV) ratio, also known as the margin of finance is a calculation used to estimate how much you owe compared to your asset’s current market value. It is usually used to evaluate the risk in a mortgage loan.
In most cases, the appraised value is the same as the selling price, but the bank will request for an official appraisal anyway. Here’s how the calculation works:
Loan to value ratio = Mortgage Amount / Appraised Value of the Property
So lets say the current appraised value of market value of your home is RM500,000 and your outstanding balance on the mortgage is RM150,000. Your LTV ratio is:
RM150,000 / RM500,000 = [...]
Ask any employee about what their dreams are and chances are they’ll tell you that one of their dream is to move into their own home. For first-time home buyers, nothing can be as exciting as finally getting the keys to a house you can call your own.
There’s that thrill you get when viewing a property for sale. Images start to form in your head about how you’re going to settle down in your new house. You can see yourself spending weekend nights looking out at the view from your balcony or imagining how you’ll decorate the kids’ room.
Emotions come into play in the home-buying process and all these happy thoughts of the future may push you to tell the agent to remove the [...]