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
Ever wondered how exactly banks calculate a person’s eligibility for a housing loan? Some forms are filled in, keyboards are pounded on, calculations are penciled in and suddenly your loan application is either accepted or rejected! How does this happen?
If you are as baffled as many people are about the loan eligibility determination methods used by banks, then you should know that one of the main parameters used by banks to calculate a person’s loan eligibility after taking into account all the other debt they have is the Debt-Service Ratio.What is a Debt-Service Ratio?
The Debt-Service Ratio, acronym DSR, determines your ability to repay, in instalments, the [...]
Do you need a personal loan but feel terrified by the thick-paged, small-printed terms and conditions stipulated in your agreement that you may not have even read? You’re not alone. After all, deciphering legal jargon is not exactly a walk in the park for most of us.
While your agreement is that thick and wordy for a reason, rest assured that the key items that you need to note in it is thankfully few – now you just need to look out for them in order to make an informed and budget-savvy decision!Processing and Handling Fees Plus Stamp Duty
One of the things you want to look out for is if the bank is going to charge you processing and handling fees, usually [...]