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Get In TouchCongratulations! Taking the step to buy your first home is one of the biggest and most exciting decisions you’ll make. Here at Asiabina, we are committed to building not just your house, but also your knowledge.
The biggest hurdle for any first-time buyer is often securing that all-important home loan. Don’t worry, we’ve broken down the process into simple, manageable steps for you.
🚀 Phase 1: The Pre-Game (Getting Your Finances Ready)
Before you even step into a bank, you need to know exactly where you stand. Banks are looking for stability and responsibility.
1. Check Your Financial Health (CCRIS & CTOS)
- What it is: These are your credit reports. They show banks your entire debt history—credit cards, car loans, PTPTN, and personal loans—for the last 12 months.
- The Goal: Everything should be marked as ‘0’ (meaning payments were made on time). Any missed payment (‘1’, ‘2’, etc.) will lower your credit score and make banks hesitate.
- Action: Get your CCRIS report from Bank Negara Malaysia and your CTOS report. Clear up any outstanding or late payments immediately.
2. Calculate Your Debt Service Ratio (DSR)
- What it is: The DSR is a ratio that banks use to determine your ability to repay the loan. It’s your total monthly debt divided by your gross monthly income.
- Formula:
DSR = Total Monthly Debt Commitments / Gross Monthly Income x 100%
- The Goal: While the limit varies by bank and your income level, aim for a DSR of below 60% (preferably lower). If your DSR is too high, you must reduce your existing debt (e.g., settle your credit card balance) before applying.
3. Save for Upfront Costs (It’s More Than Just the Down Payment!)
For most first-time buyers, the bank will finance up to 90% of the property price. You must prepare the remaining 10% as the down payment, plus an additional 5-8% to cover related transaction costs.
| Upfront Cost | Estimated % of Property Price | Notes |
| Down Payment | ~ 10% | Paid to the developer/seller. |
| Legal Fees | ~ 1% -3% | For the Sale & Purchase Agreement (SPA) and Loan Agreement. |
| Stamp Duty | ~1%- 4% | Tax on the SPA and Loan Agreement (Varies based on property value). |
| Valuation Fee *only for subsale/completed properties | ~ 0.25-0.5% | Fee for the bank’s valuer to assess the property’s worth. |
| MRTA/MLTA | Varies widely | Mortgage insurance (MRTA is cheaper, MLTA is more flexible). |
🔑 Phase 2: The Application Process (Go Get That Loan!)
Once your finances are in check, it’s time to apply.
Step 1: Shop Around and Get Pre-Approval
- Compare Banks: A small difference in interest rate (e.g. 0.1%) can save you thousands over 30 years. Compare rates and loan features (Term Loan, Flexi Loan, Islamic Financing).
- Pre-Approval: Submit basic documents (IC, payslips, EPF statement) to a few banks. This preliminary check tells you roughly how much the bank is willing to lend you. This is crucial before signing the SPA!
Step 2: Formal Loan Application and Document Submission
After the developer gives you the Letter of Offer (LO) for the property, you submit your formal loan application to the bank(s) of your choice.
| Document Checklist (Salaried Employee) | Document Checklist (Self-Employed) |
| Copy of NRIC | Copy of NRIC |
| Latest 3 to 6 months Payslips | Business Registration Documents (SSM) |
| Latest 3 to 6 months Bank Statement | Latest 6 to 12 months Company Bank Statements |
| Latest 1 to 2 year EPF Statement | Latest 2 years Form B (Income Tax) |
| Latest 1 to 2 year Form BE (Income Tax) | Property Documents (Registration Form/LO/SPA) |
| Property Documents (Registration Form/LO/SPA) |
Step 3: Receive the Letter of Offer (The Bank’s Official OK)
If approved, the bank issues a Letter of Offer (LO). This is the official document detailing:
- The approved loan amount.
- The interest/profit rate.
- The loan tenure (e.g., 30 or 35 years).
- The monthly installment amount.
- The lock-in period (how long you must stay with the bank).
Review the LO carefully with your lawyer. If you agree, sign it and return it to the bank.
Step 4: Sign the Legal Documents
Your lawyer will manage the two main legal agreements:
- Sale and Purchase Agreement (SPA): The contract between you and Asiabina (the developer).
- Loan Agreement: The contract between you and the bank.
Once signed and stamped, the bank handles the rest—disbursing the loan funds to the developer according to the schedule!
đź’ˇ Pro-Tip: Government Schemes for First-Time Buyers
Always ask your bank or a financial advisor about current government schemes. Schemes like the Skim Jaminan Kredit Perumahan (SJKP) are sometimes available to help gig workers or those without fixed income documents secure up to 100% or 110% financing, eliminating the need for a down payment.
The take-away is simple: Preparation is power. Get your DSR low, clean up your CCRIS, save your cash, and you’ll be one step closer to getting the keys to your new home with Asiabina!
Check out our properties and speak to our team to understand more!
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