Unless you earn a substantial amount of money or own a business, a mortgage is likely to be the biggest loan of your lifetime, with repayment periods typically lasting for decades and often requiring a loan of several hundred thousand Malaysian Ringgit. Given the magnitude of this burden, it is important to carefully consider and understand the reasons for applying for a housing loan before doing so.
Deciding whether to buy or rent a house is crucial, as it will affect your financial management for years to come. It is therefore essential to consider whether this is the right choice for you. If you value liquidity, flexibility, or anticipate moving at some point in the future, then buying a house may not be the best option for you.
Take some time to sit down and think about your intentions, goals, and financial situation for buying a property. If you plan to buy a house to start a family, then discuss it with your partner. Make sure that purchasing a property is really what you want.
Understand the value of your property.
Once you have decided that buying your own property is the right move, it is time to visit the property you are interested in. Just like buying a car, you may need to understand the eventual resale value of the asset you are buying. There are many factors that can affect the value of a property, so it is important to consider all of them.
For example, location, convenience, nearby future developments, and the reputation of the developer are all important factors to consider, to ensure that the property you want is not only suitable for you, but also a valuable investment in the future.
Understand the details of your loan.
Now that you have decided on the property, it is time to explore the housing loan that is right for you. You can approach different loan institutions to inquire about their representatives, or you can look at home loan comparison websites to see which one is best suited for your budget, borrowing capacity, and price.
Remember that there are several different types of housing loans, including Islamic house loans with different profit rates, flexible house loans linked to your account, and other schemes that can help you manage your burden in different ways.
Calculate whether you can afford a higher down payment. A typical 10% deposit is a common amount that can save you more, but if you can afford it, we recommend saving a little more so that you can pay a little more than this amount. Why? A larger down payment indicates that the borrower is a good enough payer, which may increase your chances of getting approved for a loan.
In addition, a higher down payment can help you save more interest, which is a good way to reduce your burden if you want to.
Make sure your credit report is good.
Paying a higher down payment is not the only way to increase your chances of loan approval. However, you also need to ensure that your credit health and credit score are in the best possible condition. A good credit score reflects your position in the eyes of banks and lenders, so the best first step is to get a complete credit report with a credit score, such as the MyCTOS Score report.
The easiest way to obtain a complete MyCTOS Score report is to log on to the CTOS website and register online as a CTOS user. CTOS is a credit.