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Comparing Life Insurance, MLTA, and MRTA for Mortgage Protection

When it comes to protecting your family’s financial future, especially in the context of mortgage liabilities, several options are available. Life insurance, Mortgage Level Term Assurance (MLTA), and Mortgage Reducing Term Assurance (MRTA) are three common choices. Each offers unique benefits and considerations. In this guide, we’ll compare these options to help you make an informed decision based on your needs and circumstances.

Life Insurance:

Life insurance provides financial protection to your beneficiaries in the event of your death. It pays out a lump sum or regular income to your chosen beneficiaries, helping them cover living expenses, debts, and future financial needs. Here are some key features:

  1. Flexibility: Life insurance offers flexibility in coverage amount, policy duration, and premium payments. You can customize your policy to suit your needs and budget, whether you want coverage for a specific term (term life insurance) or lifelong protection (whole life insurance).
  2. Comprehensive Protection: In addition to mortgage repayment, life insurance can provide financial security for your family’s long-term needs, such as education expenses, daily living costs, and retirement income.
  3. Investment Component: Some life insurance policies come with an investment component, allowing you to accumulate cash value over time. This can serve as a source of emergency funds or supplemental income during retirement.
  4. Cost Considerations: The cost of life insurance premiums varies depending on factors such as your age, health, coverage amount, and policy type. While life insurance premiums may be higher than MLTA or MRTA initially, they provide broader coverage and long-term financial protection.

MLTA (Mortgage Level Term Assurance):

MLTA is a mortgage insurance product that offers level coverage throughout the policy term. It provides protection against mortgage liabilities while offering additional benefits such as critical illness coverage and investment opportunities. Here are some key features:

  1. Fixed Coverage Amount: MLTA provides a fixed coverage amount that remains constant throughout the policy term. This ensures that your beneficiaries receive a predetermined sum in the event of your death or disability.
  2. Premium Flexibility: MLTA offers flexibility in premium payments, allowing you to choose between single premium, regular premium, or hybrid payment options. You can tailor the premium payment schedule to suit your financial preferences and budget.
  3. Comprehensive Protection: MLTA offers comprehensive protection by covering not only the outstanding mortgage balance but also additional benefits such as critical illness coverage and total and permanent disability coverage.
  4. Investment Opportunities: Some MLTA policies come with an investment component, allowing you to accumulate cash value over time through investment-linked funds. This provides an opportunity for potential returns on investment while simultaneously providing protection against mortgage liabilities.

MRTA (Mortgage Reducing Term Assurance):

MRTA is a mortgage insurance product designed to cover the outstanding loan balance in the event of your death or permanent disability. The coverage amount decreases over time as the mortgage is gradually repaid. Here are some key features:

  1. Decreasing Coverage: MRTA provides decreasing coverage over the policy term, reflecting the declining outstanding loan balance. This ensures that the outstanding mortgage balance is fully covered at any given time.
  2. Single Premium: MRTA typically involves a one-time premium payment, which is calculated based on factors such as the loan amount, loan tenure, and borrower’s age. The premium is usually included in the total loan amount and financed by the borrower through the mortgage.
  3. Creditor Protection: MRTA primarily protects the lender (creditor) by ensuring that the outstanding loan balance is settled in the event of your death or disability. While your family indirectly benefits from having the mortgage debt cleared, they do not receive any additional financial compensation beyond the loan settlement.
  4. Limited Flexibility: MRTA offers limited flexibility in coverage customization or investment options. Borrowers have little control over the policy, and the coverage is typically tied to the specific mortgage loan.

Comparing Life Insurance, MLTA, and MRTA:

  1. Coverage Flexibility: Life insurance and MLTA offer greater flexibility in coverage customization and premium payment options compared to MRTA. Borrowers can tailor their coverage amount and premium payment schedule according to their individual needs and financial circumstances.
  2. Comprehensive Protection: Life insurance and MLTA provide more comprehensive protection by offering benefits beyond mortgage loan settlement, such as critical illness coverage and total and permanent disability coverage. MRTA primarily focuses on settling the outstanding loan balance.
  3. Investment Opportunities: MLTA and some life insurance policies come with an investment component, allowing policyholders to accumulate cash value over time through investment-linked funds. MRTA does not offer investment opportunities and solely serves to settle the outstanding loan balance.
  4. Cost Considerations: While life insurance and MLTA may offer more comprehensive coverage and flexibility, they often come with higher premiums compared to MRTA. Borrowers should carefully evaluate the cost-benefit ratio and consider their budgetary constraints when choosing between these options.

Conclusion:

Choosing the right mortgage protection option depends on your individual needs, preferences, and financial circumstances. Life insurance provides broad financial protection beyond mortgage liabilities, while MLTA offers comprehensive coverage with investment opportunities. MRTA, on the other hand, primarily focuses on settling the outstanding loan balance. Consider consulting with a qualified financial advisor to assess your options and make an informed decision based on your specific requirements. Ultimately, selecting the most suitable mortgage protection option ensures that you and your loved ones are adequately protected against unforeseen circumstances while repaying your mortgage loan.

I personally recommend MRTA or MLTA options for a simple reason, it is usually finance into your loan! You won’t be able to miss payment like a life insurance policy (even if you miss your mortgage monthly payment, your loved ones are still financially protected).

Elijah is an esteemed real estate agent who has dedicated his expertise to the RUMAWIP program since 2018. With a reputation for unwavering honesty, he navigates the real estate landscape with straightforwardness and analytical insight. Alongside his role as a real estate agent, Elijah shines as a marketing consultant collaborating closely with RUMAWIP developers. His dual perspective and commitment to affordability make him a trusted figure in the industry, consistently guiding clients and stakeholders toward informed decisions and successful outcomes.

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice. I will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. I do not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, I do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person. on this site. I assume no liability for any mistake or omission on this website, or for any subsequent loss or damage experienced by the receiver or any other person, save to the extent that liability under legislation cannot be avoided.

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Retire Comfortably With RUMAWIP

Unlocking Home Equity: Understanding Skim Saraan Bercagar (SSB) Reverse Mortgage

As Malaysia’s population ages, many seniors are faced with the challenge of ensuring financial security during retirement as it is no longer a secret that most Malaysians do not have sufficient savings in EPF. For homeowners aged 55 and above, reverse mortgage presents a unique opportunity to leverage the equity in their homes to supplement their retirement income. In this comprehensive guide, we’ll delve into the concept of reverse mortgage in Malaysia, its mechanics, benefits, potential drawbacks, and considerations for interested homeowners.

Understanding Reverse Mortgage in Malaysia:

Reverse mortgage is a financial product tailored for Malaysian citizens or permanent residents aged 55 and above who own a freehold property or leasehold property with remaining lease tenure not less than 90 years. It allows eligible homeowners to convert a portion of their home equity into cash without having to sell their property or make monthly repayments. The scheme is regulated by Bank Negara Malaysia (BNM) and administered by participating financial institutions.

How Does Reverse Mortgage Work?

  1. Eligibility and Application: To qualify for reverse mortgage in Malaysia, homeowners must meet certain eligibility criteria, including age, property type, and ownership status. Upon meeting the requirements, homeowners can apply for reverse mortgage through participating banks or financial institutions.
  2. Property Valuation: Once the application is submitted, the property undergoes a valuation process to determine its market value. The maximum loan amount that can be obtained through reverse mortgage is calculated based on factors such as the appraised value of the property, the homeowner’s age, and prevailing interest rates.
  3. Disbursement of Funds: Upon approval, the homeowner can choose to receive the loan proceeds as a monthly payment. The funds can be used to cover living expenses, healthcare costs, home renovations, or other financial needs.
  4. No Repayment Required: Unlike traditional mortgages, reverse mortgage borrowers are not required to make monthly repayments. The loan is repaid only when the homeowner permanently moves out of the property, sells the home, or passes away. At that time, the loan balance, including accrued interest and fees, is settled through the sale of the property, with any remaining proceeds going to the homeowner or their estate.

Benefits of Reverse Mortgage in Malaysia:

  1. Supplemental Income: Reverse mortgage provides seniors with a valuable source of supplemental income during retirement, allowing them to maintain their standard of living and cover expenses apart from depending on their EPF and savings.
  2. Security of Homeownership: Reverse mortgage allows homeowners to access the equity in their homes while retaining ownership and the right to live in the property for as long as they choose. This provides a sense of security and stability during retirement.
  3. No Negative Equity Guarantee: In Malaysia, reverse mortgage comes with a “no negative equity guarantee,” which means that the homeowner or their estate will not be required to repay more than the value of the property at the time of repayment. This protects the homeowner and their heirs from owing more than the property is worth.
  4. Tax Free: The money you receive monthly is not taxable!

Considerations and Potential Drawbacks:

  1. Accrued Interest: The loan balance of a reverse mortgage increases over time as interest accrues on the principal amount borrowed. This can reduce the equity available to heirs when the loan becomes due.
  2. Fees and Charges: Reverse mortgage transactions may involve fees and charges, including valuation fees, legal fees, administrative fees, and insurance premiums. These costs can impact the overall cost of the loan and should be carefully considered.
  3. Impact on Heirs: Upon the homeowner’s death or when the property is sold, the loan balance, including accrued interest and fees, must be repaid. Depending on the circumstances, this repayment obligation may impact the inheritance received by heirs.

Conclusion:

Reverse mortgage by Cagamas offers a valuable financial tool for Malaysian seniors seeking to unlock the equity in their homes to supplement their retirement income. While it provides flexibility, security, and peace of mind, it’s essential for homeowners to carefully consider the terms, costs, and potential implications before proceeding with a reverse mortgage arrangement. Consulting with a qualified financial advisor and exploring alternative options is advisable to ensure that reverse mortgage aligns with one’s long-term financial goals and circumstances. With careful consideration and proper planning, reverse mortgage can be a valuable resource in achieving financial stability and security during retirement in Malaysia. As for Millennials and Gen Z, RUMAWIP offer best value for your money and with it’s low monthy loan repayment it is a practical option to be purchase as a first home and upon paying off it; you can opt for a Reverse Mortgage if EPF savings is not sufficient for retirement life.

Please take note, IT IS ONLY APPLICABLE IF YOUR RUMAWIP IS FREEHOLD.

Please subscribe to our TELEGRAM CHANNEL for RUMAWIP updates.

Elijah is an esteemed real estate agent who has dedicated his expertise to the RUMAWIP program since 2018. With a reputation for unwavering honesty, he navigates the real estate landscape with straightforwardness and analytical insight. Alongside his role as a real estate agent, Elijah shines as a marketing consultant collaborating closely with RUMAWIP developers. His dual perspective and commitment to affordability make him a trusted figure in the industry, consistently guiding clients and stakeholders toward informed decisions and successful outcomes.

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice. I will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. I do not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, I do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person. on this site. I assume no liability for any mistake or omission on this website, or for any subsequent loss or damage experienced by the receiver or any other person, save to the extent that liability under legislation cannot be avoided.

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RUMAWIP OF THE YEAR (2024)

Are you dreaming of owning an affordable yet desirable home in the coveted neighborhoods of TTDI (Malay Reserve Land)? The wait is finally over! In this blog, we unveil the most anticipated RUMAWIP (Federal Territories Affordable Housing Project) developments in TTDI that are set to make waves in 2024. These projects offer an incredible opportunity for aspiring homeowners to own a property in prime locations without breaking the bank. Read on to discover the exciting details and secure your spot in these highly sought-after communities.

TTDI RUMAWIP (MALAY ONLY): Embrace Tranquility in the Heart of the City TTDI, renowned for its greenery and tranquility, welcomes you to experience the perfect balance between urban living and nature. This RUMAWIP development offers residents the opportunity to live amidst lush parks, jogging trails, and serene surroundings. Enjoy the convenience of nearby shopping malls, reputable educational institutions, and a wide range of dining options. TTDI RUMAWIP presents an ideal sanctuary for those seeking solace in the midst of the city’s hustle and bustle.

Why You Shouldn’t Miss Out:

  • Unbeatable Affordability: The RUMAWIP initiative ensures that these properties are priced well below the market value, making homeownership a reality for many Malaysians who previously thought it was out of reach price only at RM 300,000.
  • Prime Locations: TTDI are highly sought-after neighborhoods known for their excellent connectivity, proximity to amenities, and vibrant communities. Living in these areas grants you access to a myriad of lifestyle options, from renowned restaurants to trendy shopping destinations.
  • Thoughtfully Designed Units: The RUMAWIP projects in TTDI boast thoughtfully designed units that optimize space utilization and incorporate modern features. Each unit is crafted with your comfort and convenience in mind.

Join Our Telegram Channel for Exclusive Updates: To stay up-to-date with the latest news, project updates, and exclusive opportunities for these highly anticipated RUMAWIP developments in TTDI, we invite you to join our Telegram channel. Don’t miss out on the chance to be among the first to know about the official launch dates, floor plans, pricing details, and booking procedures.

Conclusion: The 2024 RUMAWIP projects in TTDI have captured the attention of homebuyers and investors alike. These developments present an incredible opportunity to own an affordable yet prestigious property in two of Kuala Lumpur’s most coveted neighbourhoods. Act now, join our Telegram channel, and embark on your journey towards owning your dream home in TTDI. Secure your spot and be part of the exclusive community that awaits you in these remarkable RUMAWIP projects.

Elijah is an esteemed real estate agent who has dedicated his expertise to the RUMAWIP program since 2018. With a reputation for unwavering honesty, he navigates the real estate landscape with straightforwardness and analytical insight. Alongside his role as a real estate agent, Elijah shines as a marketing consultant collaborating closely with RUMAWIP developers. His dual perspective and commitment to affordability make him a trusted figure in the industry, consistently guiding clients and stakeholders toward informed decisions and successful outcomes.

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice. I will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. I do not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, I do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person. on this site. I assume no liability for any mistake or omission on this website, or for any subsequent loss or damage experienced by the receiver or any other person, save to the extent that liability under legislation cannot be avoided.

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0% Interest Loan Sshhhhhhhh

This post is created to address the cash flow issue that some RUMAWIP buyers have when it’s time to pay legal fees required (when bank is unable to finance) or fork over money to renovating their RUMAWIP. This approach will only work if your CCRIS is in good working order. To begin, if you are applying for a housing loan, please do so after your application has been approved and the letter of offer has been received, or it may have a negative impact on your housing application (exceed DSR during mortgage application).

Using Credit Card Balance Tranfer

Say you have a Credit from Bank A with zero outstanding.

1st Step

Google out all the balance transfer option in the market, most of the time you will be able to find bank’s promotion on credit application for new client with 0% interest offer on balance tranfer. Apply for that credit card.

2nd Step

When it is approve, call in for the balance transfer and request the amount you need to be transfer into your credit card from Bank A.

3rd Step

When the funds are transferred to your existing credit card, you can contact your Bank A call centre and request that the extra funds be transferred to your personal account.

Please take note that if you miss up the payment, YOU WILL BE CHARGE 18% PER ANNUM by the bank. It is advisable that you do not use the new credit card until the Balance Transfer offer is paid up. During application for this, best find out on are you allow to use the new credit card without being charge of interest before paying off the balance transfer!

From the 1st of January 2023 to the 31st of December 2023, RHB is giving a deal to new credit card applicants: 0% Cash Excess for a maximum of RM 30,000 over 12 months (draw money from the credit card without interest or the hassle from the suggestion above) This subject to bank’s approval.

Elijah is an esteemed real estate agent who has dedicated his expertise to the RUMAWIP program since 2018. With a reputation for unwavering honesty, he navigates the real estate landscape with straightforwardness and analytical insight. Alongside his role as a real estate agent, Elijah shines as a marketing consultant collaborating closely with RUMAWIP developers. His dual perspective and commitment to affordability make him a trusted figure in the industry, consistently guiding clients and stakeholders toward informed decisions and successful outcomes.

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice. I will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. I do not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, I do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person. on this site. I assume no liability for any mistake or omission on this website, or for any subsequent loss or damage experienced by the receiver or any other person, save to the extent that liability under legislation cannot be avoided.

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Saving RM 100,000 in RUMAWIP Purchase!

The majority of RUMAWIP buyers choose for 100% financing, known as SKJP, with Maybank and RHB as the leading players. I’m going to tell you how to save money by making larger monthly payments. Mortgages can be taken out for up to 35 years or until the borrower reaches the age of 70. To achieve this, we will use a RHB package with 4.55% interest rates and 35 years tenure as an example.

First google for a amortization calculator or simply click THIS

Step 1: Key in loan amount RM 300,000

Step 2: Key in the interest rates 4.55%

Step 3: Key in the tenure 35 years is you are age 35 and below (if you are above 35, use this formula 70 – your age = max tenure)

Step 4: Key in the extra amount of monthly payment you can afford to pay.

After entering your information, you can plainly see how much money you can save if you pay an extra RM 257.15. There are no precise methods for calculating this as interest rates fluctuates (Unless you have one of those hard-to-find fixed-rate mortgages). Iif you wish to aim higher say RM 150,000 of interest savings, just repeat the steps above.

Now as we use RHB as a model here, please take note that RHB Conventional is Full Flexi (A flexi loan allows borrowers to not only make advance payments to reduce their mortgage interest, but also to withdraw the extra payments whenever they need them) & RHB Islamic is Semi Flexi ( allow to make advance payment to save on profit rate but unable to withdraw the extra payments).

As for Maybank it is a Term Loan but slightly Flexi. You can make advance payment to save on interest but you have to inform the bank via phone call to branch or walk in after the payment is made. MBSB offers SKJP financing; advance payment to principal requires you to notify bank 1 month in advance.

Elijah is an esteemed real estate agent who has dedicated his expertise to the RUMAWIP program since 2018. With a reputation for unwavering honesty, he navigates the real estate landscape with straightforwardness and analytical insight. Alongside his role as a real estate agent, Elijah shines as a marketing consultant collaborating closely with RUMAWIP developers. His dual perspective and commitment to affordability make him a trusted figure in the industry, consistently guiding clients and stakeholders toward informed decisions and successful outcomes.

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice. I will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. I do not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, I do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person. on this site. I assume no liability for any mistake or omission on this website, or for any subsequent loss or damage experienced by the receiver or any other person, save to the extent that liability under legislation cannot be avoided.

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How to Book a RUMAWIP?

“The Official Way:

Just click on this link, JWP, to be directed to the official government website. From there, you can select the available projects and apply accordingly. After applying, you’ll need to wait for approval. Once the project is approved, the developer will contact you for viewing, and if you wish to proceed, you can apply for a loan. Alternatively, you can visit the gallery to view the project and apply for a loan concurrently with the application for government approval. The developer’s contact number is always provided on the website. All of this occurs after developer successfully obtain the APDL (Advertising Permit and Developer’s License).

The Kiasu Way:

Please note that the 110% home financing program, My First Home Scheme, which was backed by CAGAMAS, has been replaced with the SKJP loan. Currently, only Maybank and RHB actively provide this package in most RUMAWIP (Residensi Wilayah) projects. It’s important to understand that banks usually finance 25-30% of the project initially, with an increase occurring when the quota is met. This increase typically takes an average of 2 weeks from the time the bank manager submits the application after the quota is full.

If there are only two banks providing the SKJP package for RUMAWIP projects, we can conclude that as the sales of a specific RUMAWIP project reach 50-60% of the total units, the process may slow down. This is because more than 90% of RUMAWIP buyers opt for full financing, which means that buyers can’t be selective about loan packages. As a result, those who can afford the 10% down payment will be able to secure units easily. As for examples, these two RUMAWIP projects Dutamas Dahlia was fully taken in 2 days, and Alamanda (located close to Bangsar) was fully taken in less than 7 days, just to name a few examples.

So, what do we, as experience RUMAWIP agents do in this situation? We help you in

  • providing you the insider news before APDL is released to give you the first mover advantage
  • loan pre-approved (there is limited quota for FULL FINANCING)
  • prepare your documentation
  • lock your prefer units with the developer
  • brief you on what to look out for when buying a BARE UNIT condominium such as a RUMAWIP

We earn by successfully getting you your desired units therefore, we will always do our best to assist with the purchasing process.

Please subscribe to our Telegram Channel for RUMAWIP insider news and gain a first-mover advantage.”

Elijah is an esteemed real estate agent who has dedicated his expertise to the RUMAWIP program since 2018. With a reputation for unwavering honesty, he navigates the real estate landscape with straightforwardness and analytical insight. Alongside his role as a real estate agent, Elijah shines as a marketing consultant collaborating closely with RUMAWIP developers. His dual perspective and commitment to affordability make him a trusted figure in the industry, consistently guiding clients and stakeholders toward informed decisions and successful outcomes.

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RUMAWIP FULL FINANCING OPTIONS

This information is as of 10th October 2023.

This professional analysis focuses on full home financing for RUMAWIP called SJKP loan offered by 3 banks:

RHB 100% FINANCING

Maybank 100% FINANCING (main player in RUMAWIP financing). These banks provide full financing options for individuals seeking to purchase a home.

MBSB 100% FINANCING (least preferred option)

Applicants must not earn above a gross of RM 11,000 or joint income (spouse) RM 22,000 (Individual who earn more than RM 11,000 and after combine with spouse end up with the total income of less than RM 22,000 IS NOT ELIGIBLE)

RHB

RHB Bank offers a housing loan with an interest rate of 4.6%. This rate remains constant throughout the loan tenure. RHB’s debt service ratio has a maximum limit of 65% (T&C must have nett disposable income of RM 800, in other words money left after servicing all loan including the one you are applying). The debt service ratio is a crucial factor as it determines the percentage of an individual’s monthly nett income (after deducting EPF & SOCSO) that can be allocated towards debt repayments. RHB Bank’s maximum debt service ratio of 65% implies that the borrower’s total monthly debt payments, including the housing loan you are applying, should not exceed 65% of their monthly income. Kindly be aware that variable income will be recognise as 50% net amount only. As for full commission earner; it’s either recognise at 50% or 80% of the nett amount of the commission earned. Lock in period 3 years. (early settlement will have penalty). If selected loan is under Conventional and NOT Islamic; it is a full flexi loan (individual is able to deposit and withdraw advance payment)

For example

Commission earned recognized as 80% when monthly differences not more than 30%

Latest 6 months commision earned (sample for 80% income recognition)

RM 7,000
RM 7,300
RM 7,500
RM 6,990
RM 7,250
RM 7,800

TOTAL RM 43,840 divide by 6 (months) = RM 7306.6 X 80% = RM 5845 is the recognized nett income.

Latest 6 months commission earned (sample for 50% income recognition)

RM 7,000
RM 3,500
RM 7,200
RM 7,800
RM 7,500
RM 7,700

TOTAL RM 40,700 DIVIDE BY 6 (months) = RM 6783.3 x 50% = RM 3391.66 is the recognized nett income.

Maybank

Maybank provides a housing loan with interest rates ranging from 4.25% to 4.5%. The specific interest rate offered may vary based on factors such as the loan amount, tenure, and the borrower’s creditworthiness. Maybank allow a maximum debt service ratio of 60%. This indicates that the borrower’s total monthly debt payments, including the housing loan, should not exceed 60% of their monthly nett income. Maybank recognise all variable income at 70% (latest 6 months average) & take in share margin account into DSR calculation (the mechanism can’t be obtain). Zero lock in period. Non flexi loan (Individual is allow to pay extra to save on interest but won’t be able to withdraw it out again)

You may want to read more about DSR (debt service ratio) HERE

MBSB

MBSB term financing interest rates for RUMAWIP is 4.65% (as of 6th Sept 2023). DSR set at the maximum of 80% with condition of NDI per applicant of RM 1000 (Nett Disposable Income or in simple term, the left over cash after all loan payment is made inclusive of the current application instalment). Tenure of financing is limit to only 30 years and up to age 70. Variable income recognition is at 60% (latest 6 months average) but capped max at 20% of fixed gross income (salary before deduction of EPF & SOCSO). For example, if the individual salary is RM 3000; no matter how much commission that person has earned for the last 6 months; the variable income recognition will be capped at RM600. Advance payment to principal is allow; but individual need to inform bank 1 MONTH IN ADVANCE! Lastly the lock in period is 5 years.

Please take note that individual banks have their own scoring system which play factor before approving a loan application; this I won’t be able to find out. (For example, during the covid lockdown, loan applicants from the airline industry will most probably be rejected)

Summary

RHB Housing Loan

Pros

Higher DSR of 65% for loan approval (NDI RM 800 & above)

Slight chance of recognition of variable income up to 80%

Conventional loan option is full flexi

Cons

Most probably higher interest rates

Lock in period of 3 years

Variable income recognition may go as low as 50% only

Islamic loan is semi flexi (can’t withdraw advance payment made)

Maybank Housing Loan

Pros

Most probably lower interest rates (as low as 4.25%)

No lock in period

Standardised recognition of variable income of 70%

Maybank is offering a better package for SKJP loan (in term of financing rates) as of 6th September 2023.

Cons

Loan approval subject to DSR of 60% only (please take not that due to the lower interest rates, DSR outcome will be lower too)

Term Loan which allow advance payment of principal to save on interest (need to inform bank via phone call to branch or walk in after payment made)

MBSB Housing Loan

Pros

Easy Approval – DSR allow up to 80% (benefit income earner of RM 4000 & above due to prerequisite of NDI of RM 1000 per applicant). Most applicant of RUMAWIP usually have taken up a car loan.

Cons

High Interest Rates 4.65%

Advance payment to principal requires 1 months notice to bank.

Max Tenure of 30 years (normally 35 years)

Lock in period of 5 years

Elijah is an esteemed real estate agent who has dedicated his expertise to the RUMAWIP program since 2018. With a reputation for unwavering honesty, he navigates the real estate landscape with straightforwardness and analytical insight. Alongside his role as a real estate agent, Elijah shines as a marketing consultant, collaborating closely with RUMAWIP developers. His dual perspective and commitment to affordability make him a trusted figure in the industry, consistently guiding clients and stakeholders toward informed decisions and successful outcomes.

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Low Cost Marketing Solution for RUMAWIP Property Developers

Rumawip.Com.My is a is a platform that connects potential buyers with the latest real estate listings & insiders information. A cost-effective and high-impact marketing solution for your Residensi Wilayah property developers.

The portal boasts a significant email newsletter (18,500) and telegram (13,000) subscribers list as of 6th of August 2023, which are high quality leads unlike leads from social media. By using this property portal to market your affordable housing projects, you can cut costs associated with traditional advertising methods and reach a wider audience. This will help you avoid the high payout commissions that you would get from using the traditional methods and filter out low quality leads from social media ads.

In addition, my portal also allows for easy tracking and measurement of your marketing campaigns, providing valuable insights and data to inform future marketing strategies. This will help you to evaluate the effectiveness of your marketing campaigns, and thus you can then optimize your investments in marketing. We use our experience in RUMAWIP sales to educate potential clients on how to prepare for bank loan applications months before they begin their purchase, which reduces sales turn-around time by reducing workload and making the selling process more efficient.

By utilising this property portal, you will see an increase in interest and sales for your affordable housing projects and definitely contribute positively to the process of obtaining the bridging loan as we are unrivalled in speed reaching your target audience. Please WhatsApp us if you would like to discuss this opportunity further.

  • Reaching more than five figure numbers of client within 24 hours (NOT social media leads)
  • Potential buyer are filtered for JWP & Bank Loan (educated months before they make purchase)
  • Prevent the delay of sales when hundreds of applicants without bank loan stuck awaiting for approval in JWP
  • Cost control ( One off charge without timeframe and NOT charge by cost per lead)
  • Unrivalled turn around time, proper SOP focusing on being efficient. (most developer got delay in having too much JWP approval, used up quota for banking loan with not serious buyer)

For Corporate Enquiries

Tsalach Property Management Services

Address: A-5-10 Empire Tower, Jalan SS16/1, 47500 Subang Jaya Selangor

Phone  : 0350218220

Fax        : 0350218221

Email : 88@tsalach.com.my

© 2023 by Tsalach Property Management Services

Person in Charge Elijah Woo

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MOST PRACTICAL RUMAWIP (2023) : Vista Adesa Residensi Desa Timur

  • Proximity to Highways: Strategically situated near major highways such as the KL Seremban Highway, Sungai Besi Highway, Salak South Highway and MEX Highway, residents enjoy seamless commuting and easy connectivity to their desired locations. (Save Time)
  • Hassle-free Parking: Residensi Desa Timur provides direct access to parking level, eliminating the frustration of circling around in going the upper level. This convenience saves residents valuable time and ensures a daily stress-free parking experience. (Save Time)
  • Efficient Vertical Transportation: With 1218 units and 12 lifts, Residensi Desa Timur ensures a decent lift-to-unit ratio, minimizing waiting times and enhancing convenience for residents. (Save TIme)
  • Embracing Minimalist Living: With its smaller unit sizes, Residensi Desa Timur encourages residents to adopt a minimalist lifestyle, promoting a clutter-free living environment and a more intentional way of living. (Save Money)
  • Encouragement for Home Cooking: While eateries may not be within walking distance, this encourages residents to explore their culinary skills and enjoy the benefits of home-cooked meals. This is especially beneficial considering the rising prevalence of diabetes in Malaysia, where a low-carb, home-cooked meal is a healthier choice. (Save Money)
  • Curbing Excessive Online Shopping: By embracing minimalism, residents are encouraged to control excessive online shopping, fostering a sustainable and mindful approach to consumption. (Save Money)
  • Essential Facilities: Residents have access to basic facilities, including a rejuvenating swimming pool and a well-equipped gymnasium, providing opportunities for relaxation, fitness, and well-being. (Save Money & Time)
  • Enhanced Safety and Comfort: The absence of a mid water tank ensures middle-floor residents are safeguarded from potential water leakages and sound pollution, creating a secure and serene living environment.
  • Adapting to Changing Economic Landscape: Residensi Desa Timur, being a RUMAWIP development, is an ideal choice for Malaysians facing challenges such as inflation and job mobility. Its affordable pricing ONLY RM 300,000 and emphasis on minimalist living enable residents to save money and adapt to a more streamlined lifestyle.

Residensi Desa Timur the latest RUMAWIP located Sungai Besi MAY NOT BE YOUR DREAM HOME but it is definitely an exceptional RUMAWIP development that offers residents the perfect blend of convenience, comfort, and minimalist living. With its strategic location, easy highway access, and thoughtful amenities, this residential gem provides an excellent opportunity for individuals and families to embrace a simpler lifestyle while enjoying the benefits of convenient urban living.

The common mistake of first time home buyer is they choose to buy their first house close to their workplace; the problem is most of these people change their jobs before moving in. Residensi Desa Timur is located in between Selangor & Wilayah Persekutuan (1st RUMAWIP in Sg Besi); even during peak hours one can reach anywhere in PJ or KL WITHIN 1 HOUR! Residensi Desa Timur is for Malaysian who sees the coming challenges as the middle class, bracing for impact for the coming recession. A location that enable you to be versatile, ever ready to accept an offer letter which offers you 15% increment without much thought of the journey to work, sufficient lifts, a direct access to level for you to speed off the work, highways to practically anywhere where the jobs are located, encourage to cook because you don’t have the convenience to eat out within walking distance and there is facilities like the gym and pool for you to exercise too!

The downside is

  1. Aesthetic of the building average.
  2. Flipping for profit from capital appreciation may not be ideal as there is plenty of land around this project.
  3. Lack of public transportation (Salak South LRT Station 12 minutes walk)

Please WhatsApp us if you wish to visit the gallery.

Elijah is an esteemed real estate agent who has dedicated his expertise to the RUMAWIP program since 2018. With a reputation for unwavering honesty, he navigates the real estate landscape with straightforwardness and analytical insight. Alongside his role as a real estate agent, Elijah shines as a marketing consultant collaborating closely with RUMAWIP developers. His dual perspective and commitment to affordability make him a trusted figure in the industry, consistently guiding clients and stakeholders toward informed decisions and successful outcomes.

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What is RUMAWIP?

Introduction:

In Malaysia, providing affordable housing for its citizens has always been a priority for the government. Recognizing the need for affordable homes, the Malaysian government introduced the Rumah Mampu Milik Wilayah Persekutuan (RUMAWIP) program. RUMAWIP aims to address the housing needs of low- to middle-income earners in the Federal Territories, making homeownership more accessible and affordable. In this article, we will delve into what RUMAWIP is, its eligibility criteria, and its benefits for aspiring homeowners.

What is RUMAWIP?

RUMAWIP is a government-led initiative under Jabatan Wilayah Persekutuan (JWP). It offers affordable housing options to eligible Malaysians within the Federal Territories of Kuala Lumpur, Labuan, and Putrajaya. The program strives to bridge the gap between the rising property prices and the affordability constraints faced by many Malaysians, particularly those in the middle-income bracket.

Eligibility Criteria:

To be eligible for RUMAWIP, individuals must meet specific criteria set by the program. These criteria may vary slightly depending on the respective state guidelines. Typically, the following requirements are applicable:

  1. Malaysian Citizenship: Applicants must be Malaysian citizens, ensuring the program is exclusively for locals.
  2. Age and Income: There are certain age and income restrictions to ensure the program targets low- to middle-income earners. Typically, applicants should be at least 18 years old and earn a gross income of RM 10,000 or RM 15,000 for joint salary between husband and wife.
  3. Residential Status: Applicants should not own any other property within the Federal Territories where the RUMAWIP project is located. This condition ensures that the program caters to first-time homebuyers.
  4. Priority to Residents: Priority is often given to residents living or working within the Federal Territories, further promoting accessibility for those already connected to the area.

Benefits of RUMAWIP:

  1. Affordable Housing: RUMAWIP offers homes at lower-than-market prices, enabling low- to middle-income Malaysians to own their own properties. This program aims to reduce the financial burden and make homeownership a reality for many who may otherwise struggle to enter the property market.
  2. Strategic Locations: RUMAWIP projects are strategically located within the Federal Territories, providing residents with convenient access to amenities, transportation networks, educational institutions, and employment opportunities.
  3. Quality Construction and Amenities: RUMAWIP developments maintain high construction standards and provide various amenities for the residents’ comfort and convenience. These amenities may include communal spaces, recreational facilities, security systems, and green areas.
  4. Long-Term Value: RUMAWIP properties are designed to appreciate in value over time. This aspect ensures that homeowners can secure a valuable asset and potentially build equity for their future.
  5. Priority for Upgrading: Upon meeting certain requirements and after residing in a RUMAWIP unit for a specified period, homeowners may be eligible to upgrade to other property types under government schemes or in the open market, allowing for greater flexibility and potential growth in property ownership.
  6. Minumum of 800 sqft consist of 3 Room & 2 Bathroom.

Conclusion:

The RUMAWIP program plays a vital role in addressing the housing needs of low- to middle-income Malaysians within the Federal Territories. By providing affordable housing options, it offers an opportunity for aspiring homeowners to enter the property market, improve their quality of life, and build a secure future. With strategic locations, quality construction, and various benefits, RUMAWIP serves as a crucial avenue for achieving homeownership dreams while contributing to the overall well-being and socioeconomic development of Malaysia. Now it is rebranded to Residensi Wilayah.

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