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Tuesday, December 22, 2009
Monday, December 14, 2009
How Will you Qualify for a mortgage after foreclosure?
Getting a mortgage after foreclosure may be tough as lenders treat you as a risky borrower to deal with. If you have a foreclosure on your credit report, it will take a considerable amount of time before you can win back the confidence of a lender again. It is best to defer your plans of taking out a mortgage after foreclosure because you may not qualify for one as per favorable terms. And you may not be able to get one immediately. So, the best is to improve your credit score.
You have to identify the reasons that have de-stabilized your finances. If it due to your impulsive spending habits, you have to curtail your unnecessary expenses and prioritize them. If a sudden financial hardship was due to an emergency like illness, death in the family, divorce etc, you have to gradually repair your finances in this case. You cannot set your finances straight overnight. It takes a lot of determination to streamline your finances against all odds.
Steps you can take to become eligible for a mortgage after foreclosure
1. You stand a better chance of getting a mortgage after foreclosure if you make a good down payment. So, keep aside some cash even if it means saving USD$20 each month.
2. Budget your finances. Make note of your income and expenses. Assign your paycheck to expenses according to your priority
3. Make sure you are regular with your payments. Whether it is your utility bills, medical bills or payment of store cards, try not to fall behind on your payments. In this way you can repair your credit.
4. As you are putting in efforts to repair your credit, check your affordability from time to time. You can make use of mortgage calculators to find out.
Your monthly mortgage payments should be affordable and you should avoid repeating the same errors as you did which forced you to lose your home in foreclosure. Remember your mortgage payments are for the next couple of years and you have to be consistent in making payments. A failure to do so will force you to be in the state you’re currently in. So, repair your credit and shop around for a lender that will agree to give you a mortgage after foreclosure as per favorable terms.
You have to identify the reasons that have de-stabilized your finances. If it due to your impulsive spending habits, you have to curtail your unnecessary expenses and prioritize them. If a sudden financial hardship was due to an emergency like illness, death in the family, divorce etc, you have to gradually repair your finances in this case. You cannot set your finances straight overnight. It takes a lot of determination to streamline your finances against all odds.
Steps you can take to become eligible for a mortgage after foreclosure
1. You stand a better chance of getting a mortgage after foreclosure if you make a good down payment. So, keep aside some cash even if it means saving USD$20 each month.
2. Budget your finances. Make note of your income and expenses. Assign your paycheck to expenses according to your priority
3. Make sure you are regular with your payments. Whether it is your utility bills, medical bills or payment of store cards, try not to fall behind on your payments. In this way you can repair your credit.
4. As you are putting in efforts to repair your credit, check your affordability from time to time. You can make use of mortgage calculators to find out.
Your monthly mortgage payments should be affordable and you should avoid repeating the same errors as you did which forced you to lose your home in foreclosure. Remember your mortgage payments are for the next couple of years and you have to be consistent in making payments. A failure to do so will force you to be in the state you’re currently in. So, repair your credit and shop around for a lender that will agree to give you a mortgage after foreclosure as per favorable terms.
Saturday, September 5, 2009
Bigger write back for EPF likely
The Star
Saturday September 5, 2009
By LEONG HUNG YEE
PETALING JAYA: The Employees Provident Fund (EPF), which made a RM4.69bil provision for the diminution in value of its equities investment last year, could write back a bigger amount this year as equity markets continue to improve.
The pension fund Thursday announced that it recorded a RM4.8bil investment income for the second quarter ended June 30, reflecting a 46.64% increase from RM3.27bil achieved in the first quarter.
For the first six months, the EPF had an investment income of RM8.07bil.
Chief executive officer Tan Sri Azlan Zainol said although there were signs of stabilisation in the local markets, it was too early to see how it would affect EPF for the rest of the year.
“
While we cannot say that the worst is over, should this trend continue or at least maintain at current levels, we are positive that we can reverse the bulk of the allowances for diminution in value of equity investments that we made last year,’’ he had said.
In an earlier interview with StarBiz, Azlan said EPF expected to recover the bulk of its investments when the Dow Jones reached 9,000 points.
The fund has invested in major overseas markets and local banking stocks rank high in its portfolio.
The Dow Jones Industrial Average closed at 9,344.61 points overnight.
Inter-Pacific Research head Anthony Dass believed that if the market continued to recover, EPF could probably write back part or all of its provision.
However, he said the current third quarter would be “very tricky” for the pension fund to write back its provision as trading on the local bourse had slowed down.
“We are not seeing that kind of huge trading volume nowadays. However, EPF is investing in fundamentally good stocks and these are the stocks that hold up the FTSE Bursa Malaysia KL
composite Index,” Anthony said.
He added that the potential of recovering last year’s RM4.69bil provision was there, given the EPF’s strong portfolio.
The EPF is heavily invested in index-linked stocks such as Sime Darby Bhd, RHB Capital Bhd,
Tenaga Nasional Bhd, Public Bank Bhd, Malayan Banking Bhd and Bumiputra-Commerce Holdings Bhd.
The EPF had earlier warned that this year’s dividend payout might be less than the 4.5% in 2008.
On the dividend for this year, Anthony said it would somewhat be “in line with” or even “slightly better” than last year.
A head of research with a local bank-backed research house expects this year’s dividend to be around 4.7%. “Based on the figures in the first half, it (dividend) could be around 4.7% or less,” he said, adding that 4.7% “was not too bad”.
He said the RM4.69bil provision was not really an issue but the mark-to-market could be more material.
He added that the provisions would only be realised when EPF sold its equity investment and the provision would be written back once the equity markets recovered.
Meanwhile, another head of research at a local brokerage said EPF should be able to write back part of its provisions this year, given that the local market had risen more than 30% over last year.
On dividend from EPF, he said it had not been very spectacular but he expected it to be between 4.5% and 5% this year.
Saturday September 5, 2009
By LEONG HUNG YEE
PETALING JAYA: The Employees Provident Fund (EPF), which made a RM4.69bil provision for the diminution in value of its equities investment last year, could write back a bigger amount this year as equity markets continue to improve.
The pension fund Thursday announced that it recorded a RM4.8bil investment income for the second quarter ended June 30, reflecting a 46.64% increase from RM3.27bil achieved in the first quarter.
For the first six months, the EPF had an investment income of RM8.07bil.
Chief executive officer Tan Sri Azlan Zainol said although there were signs of stabilisation in the local markets, it was too early to see how it would affect EPF for the rest of the year.
“
While we cannot say that the worst is over, should this trend continue or at least maintain at current levels, we are positive that we can reverse the bulk of the allowances for diminution in value of equity investments that we made last year,’’ he had said.
In an earlier interview with StarBiz, Azlan said EPF expected to recover the bulk of its investments when the Dow Jones reached 9,000 points.
The fund has invested in major overseas markets and local banking stocks rank high in its portfolio.
The Dow Jones Industrial Average closed at 9,344.61 points overnight.
Inter-Pacific Research head Anthony Dass believed that if the market continued to recover, EPF could probably write back part or all of its provision.
However, he said the current third quarter would be “very tricky” for the pension fund to write back its provision as trading on the local bourse had slowed down.
“We are not seeing that kind of huge trading volume nowadays. However, EPF is investing in fundamentally good stocks and these are the stocks that hold up the FTSE Bursa Malaysia KL
composite Index,” Anthony said.
He added that the potential of recovering last year’s RM4.69bil provision was there, given the EPF’s strong portfolio.
The EPF is heavily invested in index-linked stocks such as Sime Darby Bhd, RHB Capital Bhd,
Tenaga Nasional Bhd, Public Bank Bhd, Malayan Banking Bhd and Bumiputra-Commerce Holdings Bhd.
The EPF had earlier warned that this year’s dividend payout might be less than the 4.5% in 2008.
On the dividend for this year, Anthony said it would somewhat be “in line with” or even “slightly better” than last year.
A head of research with a local bank-backed research house expects this year’s dividend to be around 4.7%. “Based on the figures in the first half, it (dividend) could be around 4.7% or less,” he said, adding that 4.7% “was not too bad”.
He said the RM4.69bil provision was not really an issue but the mark-to-market could be more material.
He added that the provisions would only be realised when EPF sold its equity investment and the provision would be written back once the equity markets recovered.
Meanwhile, another head of research at a local brokerage said EPF should be able to write back part of its provisions this year, given that the local market had risen more than 30% over last year.
On dividend from EPF, he said it had not been very spectacular but he expected it to be between 4.5% and 5% this year.
Saturday, July 25, 2009
A Careless Mistake...by a legal firm
Dear Readers,
I would like to share with you a recent case that I attended.
Mandy (not her real name), bought an apartment in Penang 3 months ago. She went to a bank and got her loan approved. The next step, she needs to engage a lawyer to represent her on the sale. She chooses my legal firm for the said transaction, but the banker told her that our firm is not listed as the Banks panel.
As this is her 1st house purchase she just follow the banker's recommendation and use his chossen legal firm. Ironically, she did not check with me as my firm is in the ad-hoc panel of the bank and we have done many cases for them. So, why did the banker cheated her and told her we cannot do the loan documentation. Simple, a lot of legal firms offer kickbacks to bankers for reffering such cases.
The worst have yet to come. She signed all the legal documentation and the loan is due for release. What happen is that, the legal firm did not do a bankruptcy or ctos check on the Vendor. It turns out that the property is already in auction. Such a careless mictake. This should have been done on the very 1st step before execution of Sales & Purchase Agreement. At the end, the loan cannot be disbursed. Who is to be blame for this?
How I know about this case is because, Mandy just appointed our legal firm to handle her documentation as she has found a new apartment. I really pity her having to go through such an odeal. She in an innocent party.
From the Desk of
Michael Yeoh
To all of you out there, please make sure that you check throughly before listenning to anyone.
I would like to share with you a recent case that I attended.
Mandy (not her real name), bought an apartment in Penang 3 months ago. She went to a bank and got her loan approved. The next step, she needs to engage a lawyer to represent her on the sale. She chooses my legal firm for the said transaction, but the banker told her that our firm is not listed as the Banks panel.
As this is her 1st house purchase she just follow the banker's recommendation and use his chossen legal firm. Ironically, she did not check with me as my firm is in the ad-hoc panel of the bank and we have done many cases for them. So, why did the banker cheated her and told her we cannot do the loan documentation. Simple, a lot of legal firms offer kickbacks to bankers for reffering such cases.
The worst have yet to come. She signed all the legal documentation and the loan is due for release. What happen is that, the legal firm did not do a bankruptcy or ctos check on the Vendor. It turns out that the property is already in auction. Such a careless mictake. This should have been done on the very 1st step before execution of Sales & Purchase Agreement. At the end, the loan cannot be disbursed. Who is to be blame for this?
How I know about this case is because, Mandy just appointed our legal firm to handle her documentation as she has found a new apartment. I really pity her having to go through such an odeal. She in an innocent party.
From the Desk of
Michael Yeoh
To all of you out there, please make sure that you check throughly before listenning to anyone.
Tuesday, July 14, 2009
OCBC Launches Ideal Mortgage
Some details that I would like to share with all of you on OCBC's latest loan package.
This type of loan does not follow the normal BLR but is determine but the Bank's internal Mortgage Lending Rate (MLR). MLR is calculated from the bank's cost of fund.
There are lots of advertisement on this new product. The interest rate as advertise is 2.5% fixed. Actually the rate is for the 1st year only (as usual marketing gimmick). Thereafter, the interest rate is calculated based on MLR - 1.3%.
Here are some pros and cons that I would like to share with all of you. I think this package is more suitable for borrowers who seek short term borrowing and minimum penalty for early exit.
Pros
a) Shorter lock in period (3years)
b) Low penalty for early exit at 2% on loan amount
c) Low cost of lending for the 1st year at 2.5% p/annum
d) Very suitable for investors
e) Current MLR is less than BLR
Cons
a) MLR is more volatile than BLR as it is determine daily.
From the Desk of
Michael Yeoh
This type of loan does not follow the normal BLR but is determine but the Bank's internal Mortgage Lending Rate (MLR). MLR is calculated from the bank's cost of fund.
There are lots of advertisement on this new product. The interest rate as advertise is 2.5% fixed. Actually the rate is for the 1st year only (as usual marketing gimmick). Thereafter, the interest rate is calculated based on MLR - 1.3%.
Here are some pros and cons that I would like to share with all of you. I think this package is more suitable for borrowers who seek short term borrowing and minimum penalty for early exit.
Pros
a) Shorter lock in period (3years)
b) Low penalty for early exit at 2% on loan amount
c) Low cost of lending for the 1st year at 2.5% p/annum
d) Very suitable for investors
e) Current MLR is less than BLR
Cons
a) MLR is more volatile than BLR as it is determine daily.
From the Desk of
Michael Yeoh
Wednesday, July 8, 2009
Mortgage Tips #3 (Conventional Term Loan VS Flexi Loan)
Hi All,
Do you know, the difference between Term Loan and Flexi Loan?
Here's a brief explanation before I proceed further:-
Term Loan
a) You pay fixed amount of installment every month(as long as the BLR do not Fluctuate)
b) You will have to inform your Bank if you wish to make extra payment
c) If you wish to withdraw any extra amount prepaid, you will need to get approval from your
bank.
Flexi - Loan
a) Combination of Term Loan and Overdraft account.
b) You pay a fixed amount of i nstallment every month (as long as the BLR do not Fluctuate)
c) You do not have to inform the bank if you wish to make extra payment
d) You can withdraw and extra payment made any time witour informing the bank via ATM or
by writing a cheque.
Now you judge for yourself.
Imagine if you combine all your other accounts such as Savings Account (which pays you peanuts in interest), FD's and your current account deposit the your money into your flexi account, immedietly you will save the daily interest. You only withdraw the amount you need. As long as your money is in the flexi-account you will save interest and reduce your principal at a faster pace. As a result your tenure will be shorten.
Now ask your self.
Do you want to finish your loan earlier or use the conventional way and finish at your stipulated year?
From the Desk of
Michael Yeoh
Do you know, the difference between Term Loan and Flexi Loan?
Here's a brief explanation before I proceed further:-
Term Loan
a) You pay fixed amount of installment every month(as long as the BLR do not Fluctuate)
b) You will have to inform your Bank if you wish to make extra payment
c) If you wish to withdraw any extra amount prepaid, you will need to get approval from your
bank.
Flexi - Loan
a) Combination of Term Loan and Overdraft account.
b) You pay a fixed amount of i nstallment every month (as long as the BLR do not Fluctuate)
c) You do not have to inform the bank if you wish to make extra payment
d) You can withdraw and extra payment made any time witour informing the bank via ATM or
by writing a cheque.
Now you judge for yourself.
Imagine if you combine all your other accounts such as Savings Account (which pays you peanuts in interest), FD's and your current account deposit the your money into your flexi account, immedietly you will save the daily interest. You only withdraw the amount you need. As long as your money is in the flexi-account you will save interest and reduce your principal at a faster pace. As a result your tenure will be shorten.
Now ask your self.
Do you want to finish your loan earlier or use the conventional way and finish at your stipulated year?
From the Desk of
Michael Yeoh
Monday, June 29, 2009
Mortgage Tips # 2
"How you structure your loan is more important than the rates itself"
A lot of my customers always ask me the same question. Can you recommend me the lowest interest rate in town?
My answer is always the same:- Choose the loan that best suits you (your profile). It need not be the lowest interest rate. Sometimes by choosing the right type of loan package although the interest rate is higher will save you more interest. ( That's what I have been doing with my Customers. Show them the right passage) Different pakages have different features. It might suit your friend but not you.
Stay Tune for more Mortgage Tips.
From the Desk of
Michael Yeoh
A lot of my customers always ask me the same question. Can you recommend me the lowest interest rate in town?
My answer is always the same:- Choose the loan that best suits you (your profile). It need not be the lowest interest rate. Sometimes by choosing the right type of loan package although the interest rate is higher will save you more interest. ( That's what I have been doing with my Customers. Show them the right passage) Different pakages have different features. It might suit your friend but not you.
Stay Tune for more Mortgage Tips.
From the Desk of
Michael Yeoh
Thursday, June 25, 2009
Mortgage Tips #1
Dear Readers,
Let me share with you a simple tip to save thousands in bank's interest.
Let's use this senario as an example:-
Loan Amount: RM 100,000.00
Loan Tenure: 30 years
Interest rate: 3.5%
Monthly Installment: RM449.00 p/month
Do you know that by paying an extra RM100.00 a month on top of you installment you will save:-
RM 26,978.00 in Interest
You will finish your loan in 18 years
"Stay tune for more mortgage tips"
From the Desk of
Michael Yeoh
Let me share with you a simple tip to save thousands in bank's interest.
Let's use this senario as an example:-
Loan Amount: RM 100,000.00
Loan Tenure: 30 years
Interest rate: 3.5%
Monthly Installment: RM449.00 p/month
Do you know that by paying an extra RM100.00 a month on top of you installment you will save:-
RM 26,978.00 in Interest
You will finish your loan in 18 years
"Stay tune for more mortgage tips"
From the Desk of
Michael Yeoh
Friday, June 19, 2009
Banks Cuts Margin Of Finance
Lately, I noticed that the banks are slashing the margin of finance for housing loans. The banks are also tightening on the approval in view of the economy down turn. We can see that more properties are up for auction this year.
More banks are using computerized scoring system for the approval process. If the borrower does not meet the minimum scoring criteria the loan will be rejected or loan amount will be reduced. Gone are the days where human decide whether or not the borrower gets the loan. I will still prefer the human touch as certain areas the computer system will not be able to capture for the approval process in which human interference is needed for decision making.
From the Desk of
Michael Yeoh
RFC(USA),B.Com (Aust)
More banks are using computerized scoring system for the approval process. If the borrower does not meet the minimum scoring criteria the loan will be rejected or loan amount will be reduced. Gone are the days where human decide whether or not the borrower gets the loan. I will still prefer the human touch as certain areas the computer system will not be able to capture for the approval process in which human interference is needed for decision making.
From the Desk of
Michael Yeoh
RFC(USA),B.Com (Aust)
Wednesday, June 17, 2009
Deposit-taking firm reined in
Wednesday June 17, 2009
By LOURDES CHARLES
The Star
KUALA LUMPUR: Bank Negara Malaysia (BNM) and the Securities Commission (SC) has raided an illegal deposit-taking company that is believed to have raked in hundreds of millions of ringgit involving gold investments and the issuance of redeemable preference shares.
The joint operation saw BNM and SC officers raid Bestino Group Berhad and its related companies in Ipoh and Petaling Jaya yesterday.
The raids were conducted following numerous complaints and inquiries from the public who claimed the company promised a whopping 36% dividend a year or 3% returns per month.
“The SC has ordered the company concerned to immediately cease issuing preference shares or securities of any kind to the public with immediate effect.
“Through a scheme it marketed, Bestino Group claimed to be involved in gold investments and the issuance of redeemable preference shares, promising monthly returns of 3% in dividend payments.
“Bestino Group has failed to seek the SC’s approval for the offering of their preference shares to the public and to register a prospectus with the SC as required under the law,” BNM and SC said in statement.
It is learnt such schemes were also in breach of subsection 25(1) of the Banking and Financial
Institutions Act 1989 (BAFIA) and the offering for subscription or purchase of preference shares breached Section 212(2) of the Capital Markets and Services Act 2007.
Both BNM and the SC have advised members of the public to be cautious of deposit-taking and investment schemes offering extraordinarily high returns within a short period. They want the public to seek verification on such investment offers through various channels such as the
Internet, phone calls or seminars organised by individuals or companies that are not licensed, approved or authorised by the relevant authorities.
The public can refer to the list of licensed institutions authorised to accept deposits which is available on BNM’s website (www.bnm.gov.my) and the list of licensed intermediaries authorised to conduct regulated activities which is available on the Securities Commission’s website (www.sc.com.my).
For further inquiries, the public can also contact:
> BNMTELELINK (Customer Service Call Centre) at 1-300-88-5465.
BNMLINK - Customer Service Walk in Centre) Block D Bank Negara Malaysia, Jalan Dato Onn Kuala Lumpur. (Mon to Friday between 9am - 5pm).
By LOURDES CHARLES
The Star
KUALA LUMPUR: Bank Negara Malaysia (BNM) and the Securities Commission (SC) has raided an illegal deposit-taking company that is believed to have raked in hundreds of millions of ringgit involving gold investments and the issuance of redeemable preference shares.
The joint operation saw BNM and SC officers raid Bestino Group Berhad and its related companies in Ipoh and Petaling Jaya yesterday.
The raids were conducted following numerous complaints and inquiries from the public who claimed the company promised a whopping 36% dividend a year or 3% returns per month.
“The SC has ordered the company concerned to immediately cease issuing preference shares or securities of any kind to the public with immediate effect.
“Through a scheme it marketed, Bestino Group claimed to be involved in gold investments and the issuance of redeemable preference shares, promising monthly returns of 3% in dividend payments.
“Bestino Group has failed to seek the SC’s approval for the offering of their preference shares to the public and to register a prospectus with the SC as required under the law,” BNM and SC said in statement.
It is learnt such schemes were also in breach of subsection 25(1) of the Banking and Financial
Institutions Act 1989 (BAFIA) and the offering for subscription or purchase of preference shares breached Section 212(2) of the Capital Markets and Services Act 2007.
Both BNM and the SC have advised members of the public to be cautious of deposit-taking and investment schemes offering extraordinarily high returns within a short period. They want the public to seek verification on such investment offers through various channels such as the
Internet, phone calls or seminars organised by individuals or companies that are not licensed, approved or authorised by the relevant authorities.
The public can refer to the list of licensed institutions authorised to accept deposits which is available on BNM’s website (www.bnm.gov.my) and the list of licensed intermediaries authorised to conduct regulated activities which is available on the Securities Commission’s website (www.sc.com.my).
For further inquiries, the public can also contact:
> BNMTELELINK (Customer Service Call Centre) at 1-300-88-5465.
BNMLINK - Customer Service Walk in Centre) Block D Bank Negara Malaysia, Jalan Dato Onn Kuala Lumpur. (Mon to Friday between 9am - 5pm).
Sunday, May 31, 2009
24-hour deadline for most-wanted Ah Longs
Sunday May 31, 2009
EXCLUSIVEBy SIRA HABIBU and HARIATI AZIZAN
PETALING JAYA: Surrender or be exposed and hunted down — this is the warning police are giving Ah Longs high on their wanted list. The Ah Longs have 24 hours to surrender or their identities will be exposed to the public.
At least three or four loan-sharking kingpins involved in kidnappings and assault cases have been identified.
They include the Ah Longs involved in the recent Seri Kembangan case in which three men who failed to repay their debts were chained like animals in a vacant shoplot and fed scraps for about two months.
Inspector-General of Police Tan Sri Musa Hassan told Sunday Star police had identified the culprits and were hot on their trail.
“If they don’t surrender, we will release their pictures to the media.
“The police are going on the offensive to hunt down the Ah Longs. We will hunt them until we find them, even if they go underground,” said Musa, adding that he had directed his men to concentrate on nailing down the criminals.
Police are also seeking public assistance to provide information on any Ah Long activities.
The authorities have been stepping up their efforts in the fight against the loan shark menace following a spate of Ah Long-related kidnappings prior to the Sri Kembangan case.
On Friday, the Home Ministry announced that it had formed a task force to deal with the problem.
MCA Public Services and Complaints Department head Datuk Michael Chong commended the efforts taken by the authorities to nab the loan sharks.
However, he cautioned that the Ah Long syndicates were big and sophisticated.
“Stronger enforcement will prevent loan sharks from becoming too violent in recovering their debt. However, many will now lie low; not only the police are after them but also the public.
“Even licensed moneylenders are more careful because they know people are angry with loan sharks at the moment,” he said.
Chong added that in the long run, the demand for loans from Ah Longs has to be nipped in order to solve the problem.
“The Government needs to look at how to educate people on managing their finances as well as warn them of the dangers of borrowing money from these unlicensed moneylenders. Only when they stop going to them and put the Ah Longs out of business can we eradicate this menace from
society.”
Growing violence
Ah Longs are getting bolder and using more violence in recovering their debts.
May 27, 2009Police rescued three men who had been chained like dogs in a prison-like cell at an unoccupied shoplot in Seri Kembangan for around two months. They were beaten daily and fed only water and bread while the loan sharks waited for their families to pay up what was owed, which ranged from RM1,500 to RM4,000.
May 11, 2009A three-year-old boy was kidnapped in Perak after his relative failed to repay his debt of RM300,000 to loan sharks. His body was found fl oating in a river a few days after he went missing.
May 7, 2009An 86-year-old-woman was killed after two men slammed her head against the wall of her house. The two men were believed to be looking for her son who owed them RM2,000.
April 6, 2009Sisters Sandra Tung, 16, (right) and Susan, 15, were locked inside their Kuala Lumpur apartment for two hours by loan sharks who also threw kerosene on the door and glued their padlock because their father had borrowed RM5,000, which ballooned to RM87,000. They were rescued by police.
May 2008Police found body parts strewn on the railway tracks between the Padang Jawa and Bukit Badak stations in Klang. The victim, a 51-year-old businessman, was allegedly kidnapped and killed by Ah Longs after his family was unable to come up with the debt repayment of RM100,000. His original loan was RM30,000.
March 2008A 51-year-old woman was ambushed by three men, who took turns to sexually assault her in an isolated stairwell near her offi ce. They then lit a bunch of joss sticks and tried to burn her arms, thighs and private parts. She had borrowed RM7,000 from loan sharks but could not repay the sum in full as they demanded.
EXCLUSIVEBy SIRA HABIBU and HARIATI AZIZAN
PETALING JAYA: Surrender or be exposed and hunted down — this is the warning police are giving Ah Longs high on their wanted list. The Ah Longs have 24 hours to surrender or their identities will be exposed to the public.
At least three or four loan-sharking kingpins involved in kidnappings and assault cases have been identified.
They include the Ah Longs involved in the recent Seri Kembangan case in which three men who failed to repay their debts were chained like animals in a vacant shoplot and fed scraps for about two months.
Inspector-General of Police Tan Sri Musa Hassan told Sunday Star police had identified the culprits and were hot on their trail.
“If they don’t surrender, we will release their pictures to the media.
“The police are going on the offensive to hunt down the Ah Longs. We will hunt them until we find them, even if they go underground,” said Musa, adding that he had directed his men to concentrate on nailing down the criminals.
Police are also seeking public assistance to provide information on any Ah Long activities.
The authorities have been stepping up their efforts in the fight against the loan shark menace following a spate of Ah Long-related kidnappings prior to the Sri Kembangan case.
On Friday, the Home Ministry announced that it had formed a task force to deal with the problem.
MCA Public Services and Complaints Department head Datuk Michael Chong commended the efforts taken by the authorities to nab the loan sharks.
However, he cautioned that the Ah Long syndicates were big and sophisticated.
“Stronger enforcement will prevent loan sharks from becoming too violent in recovering their debt. However, many will now lie low; not only the police are after them but also the public.
“Even licensed moneylenders are more careful because they know people are angry with loan sharks at the moment,” he said.
Chong added that in the long run, the demand for loans from Ah Longs has to be nipped in order to solve the problem.
“The Government needs to look at how to educate people on managing their finances as well as warn them of the dangers of borrowing money from these unlicensed moneylenders. Only when they stop going to them and put the Ah Longs out of business can we eradicate this menace from
society.”
Growing violence
Ah Longs are getting bolder and using more violence in recovering their debts.
May 27, 2009Police rescued three men who had been chained like dogs in a prison-like cell at an unoccupied shoplot in Seri Kembangan for around two months. They were beaten daily and fed only water and bread while the loan sharks waited for their families to pay up what was owed, which ranged from RM1,500 to RM4,000.
May 11, 2009A three-year-old boy was kidnapped in Perak after his relative failed to repay his debt of RM300,000 to loan sharks. His body was found fl oating in a river a few days after he went missing.
May 7, 2009An 86-year-old-woman was killed after two men slammed her head against the wall of her house. The two men were believed to be looking for her son who owed them RM2,000.
April 6, 2009Sisters Sandra Tung, 16, (right) and Susan, 15, were locked inside their Kuala Lumpur apartment for two hours by loan sharks who also threw kerosene on the door and glued their padlock because their father had borrowed RM5,000, which ballooned to RM87,000. They were rescued by police.
May 2008Police found body parts strewn on the railway tracks between the Padang Jawa and Bukit Badak stations in Klang. The victim, a 51-year-old businessman, was allegedly kidnapped and killed by Ah Longs after his family was unable to come up with the debt repayment of RM100,000. His original loan was RM30,000.
March 2008A 51-year-old woman was ambushed by three men, who took turns to sexually assault her in an isolated stairwell near her offi ce. They then lit a bunch of joss sticks and tried to burn her arms, thighs and private parts. She had borrowed RM7,000 from loan sharks but could not repay the sum in full as they demanded.
Monday, May 4, 2009
Choose Your Legal Firm Wisely when you buy your property..
Recently I received a case from my real estate agent seeking my help to assist his customer to solve his problem. I would like to share with all of you the case details so that if you purchased a property you will not be caught in this tight situation.
When I received this case it is already 5 months since the customer signed the Sales & Purchase Agreement. What amused me is that the appointed Legal Firm told the customer that there are unable to release the Bank Loan because the Developer do not give consent on the sale of the property. The Legal firm is not even aware that the new law states that Developers do not have to give consent anymore. The firm should have check with the Bank on this issue rather than dragging the whole matter. Based on my experience on previous cases, we just need a letter from the developer confirming that no consent will be given out in order for the loan to be released.
After going through his file, I also noticed that the legal firm did not send the documents for adjudification (government valuation to determine how much stamp duty to be paid). The legal firm should have done it 5 months ago after the SPA has been stamped.
The customer tried to call the legal firm many times and could not find the lawyer. In actual fact, the firm do not even open everyday. The vendor also threaten to forfeit the 10% because the due date is over.
At the end, I advised the customer to discharge his present lawyer and appoint an experince legal firm to takeover the case. It took the new lawyer only one month to get the loan released.
To my readers please choose your legal firm wisely. Do not choose Legal Firms because they give discount on their professional fees (by the way this is against the law). Cheap is not always good.
From the Desk of
Michael Yeoh
Thursday, April 23, 2009
Tuesday, April 21, 2009
Banks set to increase interest on borrowings for non-national car buyers
By YAP LENG KUEN
The Star
PETALING JAYA: Despite the economic slowdown, several banks are believed to be raising interest rates on car loans.
And the move may be implemented today.
It is learnt that these hikes, probably on a tiered basis, are likely to affect non-national cars.
The current reasoning for the hike in loan rates for non-national cars is to make up for provisions set aside for losses and administrative costs.
This could indicate that non-performing loans in the auto segment could be creeping up.
Sources said talk was rife in the banking and auto industries late last week that under the tiered proposal, better rates could be quoted on shorter term loans for non-national cars.
The duration of the car loans could stretch to five, seven and nine years.
Currently, a flat rate of about 2.7% to 2.8% is charged on loans for non-national cars although the effective rate over the duration of the loan could be higher.
It is believed that for a five-year loan for a non-national car, the hike could be only a few basis points, expected to be in the region of 0.4% to 0.5%.
However, rates which are higher at around 3.75% for national cars could see a reduction as the tiered scheme is supposed to provide more attractive rates for shorter term loans.
Car loans were adjusted sometime in the middle of last year as a lot of the rates were below or slightly above the interest rate of around 3.6%.
However, many are asking why should car loans go up when the base lending rate to which housing loans are tied is on a downtrend.
Car loans, however, are fixed rate loans and not tied to the BLR.
The Star
PETALING JAYA: Despite the economic slowdown, several banks are believed to be raising interest rates on car loans.
And the move may be implemented today.
It is learnt that these hikes, probably on a tiered basis, are likely to affect non-national cars.
The current reasoning for the hike in loan rates for non-national cars is to make up for provisions set aside for losses and administrative costs.
This could indicate that non-performing loans in the auto segment could be creeping up.
Sources said talk was rife in the banking and auto industries late last week that under the tiered proposal, better rates could be quoted on shorter term loans for non-national cars.
The duration of the car loans could stretch to five, seven and nine years.
Currently, a flat rate of about 2.7% to 2.8% is charged on loans for non-national cars although the effective rate over the duration of the loan could be higher.
It is believed that for a five-year loan for a non-national car, the hike could be only a few basis points, expected to be in the region of 0.4% to 0.5%.
However, rates which are higher at around 3.75% for national cars could see a reduction as the tiered scheme is supposed to provide more attractive rates for shorter term loans.
Car loans were adjusted sometime in the middle of last year as a lot of the rates were below or slightly above the interest rate of around 3.6%.
However, many are asking why should car loans go up when the base lending rate to which housing loans are tied is on a downtrend.
Car loans, however, are fixed rate loans and not tied to the BLR.
Wednesday, April 15, 2009
Reduction in Installment Payment
Dear Readers,
Please be inform that reduction in installment payments because of reduction in Base Lending Rate will not take effect immedietly for certain Banks.
I just received a letter from CIMB informing me on the reduction in Base Lending Rate but it states that the lower installment payment will only take effect later this year. If I want effect the change immedietly, I will have to call their toll free number. This does not mean that the Bank is short changing us. The extra payment that you made will go towards principal repayment. Maybe the bank needs more time to do the adjustment because they have many borrowers.
For more info please visit http://drmortgage-at-work.blogspot.com/2009/02/banks-to-cut-loan-repayments.html#links
From the Desk of
Michael Yeoh
Please be inform that reduction in installment payments because of reduction in Base Lending Rate will not take effect immedietly for certain Banks.
I just received a letter from CIMB informing me on the reduction in Base Lending Rate but it states that the lower installment payment will only take effect later this year. If I want effect the change immedietly, I will have to call their toll free number. This does not mean that the Bank is short changing us. The extra payment that you made will go towards principal repayment. Maybe the bank needs more time to do the adjustment because they have many borrowers.
For more info please visit http://drmortgage-at-work.blogspot.com/2009/02/banks-to-cut-loan-repayments.html#links
From the Desk of
Michael Yeoh
Wednesday, April 8, 2009
House Buyers, Take Note of Differences
The Star
Wednesday April 8, 2009
WE at the HBA view with interest some housing project advertisements in the newspapers recently. They prominently state 10-90 as the mode of payment and went on to say, “Pay 10% and no payment until vacant possession.”
It would appear as if the mode of payment is similar to the Build-then-sell (BTS) 10-90 that HBA has been lobbying for and for which the Government is offering incentives to developers to adopt the system.
HBA feels that it is incumbent upon us to explain to potential house buyers the differences between the advertised 10-90 and the BTS 10-90 promoted by the Government under the amended Housing Act .
The advertised 10-90 system is actually a loan package deal whereby the buyer pays 10% upon signing the Sales and Purchase Agreement and the balance is progressively paid through the buyer’s housing loans. The loan is progressively disbursed to the developer as he builds the houses.
Hence the “… no payment until vacant possession” is not wholly true because, in actual fact, the buyer’s loan is used to progressively pay the developer. However, the interest payable for the progressive payments during the construction phase is shouldered by the developer.
In the BTS 10-90 system, the buyer pays 10% upon signing the SPA and does not make any more payment until the house is completed, with all the certifications obtained. Only then does the housing loan kick in and the buyer then pays the remaining 90%.
The vital difference between the advertised 10-90 system and the BTS 10-90 is that in the advertised 10-90 system, should the developer abandon the project, the buyer is left with a partially disbursed housing loan to settle.
The primary borrower is still the buyer and it is his sole responsibility to continue with the proper conduct of his loan from the financiers.
Banks have not been known to be sympathetic to victims of abandoned projects and the loans still have to be settled, house or no house. This is the predicament presently faced by tens of thousands of naïve and innocent buyers.
We would like to categorically state that we are by no means implying that the advertised project is likely to be abandoned. This letter is only to inform potential buyers the differences between the advertised 10-90 and the BTS10-90 systems.
CHANG KIM LOONG,
Secretary General,
National House Buyers Association.
Wednesday April 8, 2009
WE at the HBA view with interest some housing project advertisements in the newspapers recently. They prominently state 10-90 as the mode of payment and went on to say, “Pay 10% and no payment until vacant possession.”
It would appear as if the mode of payment is similar to the Build-then-sell (BTS) 10-90 that HBA has been lobbying for and for which the Government is offering incentives to developers to adopt the system.
HBA feels that it is incumbent upon us to explain to potential house buyers the differences between the advertised 10-90 and the BTS 10-90 promoted by the Government under the amended Housing Act .
The advertised 10-90 system is actually a loan package deal whereby the buyer pays 10% upon signing the Sales and Purchase Agreement and the balance is progressively paid through the buyer’s housing loans. The loan is progressively disbursed to the developer as he builds the houses.
Hence the “… no payment until vacant possession” is not wholly true because, in actual fact, the buyer’s loan is used to progressively pay the developer. However, the interest payable for the progressive payments during the construction phase is shouldered by the developer.
In the BTS 10-90 system, the buyer pays 10% upon signing the SPA and does not make any more payment until the house is completed, with all the certifications obtained. Only then does the housing loan kick in and the buyer then pays the remaining 90%.
The vital difference between the advertised 10-90 system and the BTS 10-90 is that in the advertised 10-90 system, should the developer abandon the project, the buyer is left with a partially disbursed housing loan to settle.
The primary borrower is still the buyer and it is his sole responsibility to continue with the proper conduct of his loan from the financiers.
Banks have not been known to be sympathetic to victims of abandoned projects and the loans still have to be settled, house or no house. This is the predicament presently faced by tens of thousands of naïve and innocent buyers.
We would like to categorically state that we are by no means implying that the advertised project is likely to be abandoned. This letter is only to inform potential buyers the differences between the advertised 10-90 and the BTS10-90 systems.
CHANG KIM LOONG,
Secretary General,
National House Buyers Association.
Thursday, March 12, 2009
RM10,000 Tax Deduction for New House Purchase
Source:Garis Panduan Bajet Mini 2009
Lembaga Hasil Dalam Negeri Malaysia
I think this is great news to all house buyers. This will help to stimulate the economy by enticing more people to purchase property. Please take note that the Tax Relief is only for 3 years and not the whole loan tenure. There are Terms and Conditions to be fulfilled. Please read the following article publish by KPMG.
Tax Relief on Interest Paid on Housing Loans
Tax Relief on Interest Paid on Housing Loans
To stimulate the housing sector, the Government proposes that house buyers be given tax relief on interest paid on housing loans of up to RM10,000 a year for 3 years.
The claim for deduction is subject to the following conditions:
i. the taxpayer is a Malaysian citizen and a resident;
ii. limited to one residential house including flat, apartment or condominium;
iii. the sale and purchase agreement is executed between 10 March 2009 and 31 December 2010; and
iv. the taxpayer has not derived any income in respect of that residential property.
The tax deduction is given for 3 consecutive years from the first year the housing loan interest is paid.
The proposal is effective from YA 2009.
Source: KPMG
From the Desk of
Michael Yeoh
BANKS LOWER CREDIT CARD INTEREST RATES TO HELP CUSTOMERS COPE WITH WEAKENING ECONOMIC INDICATORS
The Association of Banks in Malaysia announces a downward revision of the credit card interest rate and penalty for late payment with effect from 31 March 2009.
Kuala Lumpur, February 12, 2009 – On behalf of its commercial bank members, The Association of Banks in Malaysia (ABM) is pleased to announce a downward revision of the interest rate to 13.5 percent per annum from the current 15 percent for "Tier-I" credit cardholders who promptly settle their monthly minimum payments for retail purchases for 12 consecutive months.
"Tier-II" cardholders who promptly settle their minimum payments for 10 months or more in a 12-month cycle will also benefit as the relevant interest rate will be reduced to 16 percent per annum from the current 17 percent. In addition, cardholders who do not fall within the two categories and who are generally termed "Tier-III" cardholders will see the interest rate for them come down to 17.5 percent per annum versus the current 18 percent.
To make it even easier for credit cardholders given the challenging year ahead, the present late payment fee of a minimum of RM10 or 1% of the total outstanding balance, subject to a maximum of RM100 will be revised to a minimum amount of RM5 and a maximum of RM75.
"The banks have listened and taken a lead in the region in effecting such reductions even though existing local credit card charges are already amongst the lowest in Asia (they range from 18% to 42% elsewhere in the region). Thus, the revisions not only demonstrate a reasonable, responsive and dynamic Malaysian financial system but are also in line with the underpinning principle of the tiered interest rate scheme which was introduced last year, that is, to encourage good repayment habits and financial discipline," explained ABM Chairman, Dato’ Sri Abdul Hamidy Abdul Hafiz.
Press Release – Page 2
Banks hope these latest measures will motivate credit cardholders to diligently make at least the monthly minimum payment of 5 percent of their total outstanding balance promptly since credit cardholders will now stand to have significant savings in the form of interest rate differentials of up to 4 percent when moving up the Tiers, i.e from 17.5% for "Tier-III" to 13.5% for "Tier-1".
The reductions in interest rates should give rise to savings for all credit cardholders to better enable them to make the minimum payment. It is also envisaged that more "Tier-I" credit cardholders can now afford to plan to settle their amount outstanding in full monthly. The different incremental margins of reduction in interest rates, Tier to Tier, of 1.5 percent (between
"Tier-III" and "Tier-II") and 2.5% (between "Tier-II" and "Tier-I") also serve to reward prudent repayment habits and instil strong management of personal finances.
These measures will take effect from March 31st 2009 to enable the banks to implement the requisite system changes and will be subject to further review from time to time and in any event, after a period of 12 months.
Dato’ Sri Abdul Hamidy went on to clarify that apart from funding costs, the other large components of costs in respect of credit cards are credit risk (non-performing credit) particularly since the amount outstanding is unsecured, fraud risk, infrastructure, administration and customer services costs. Credit risk costs would be expected to climb in a worsening economic environment. Under the circumstances, banks will be monitoring credit risk costs closely in the months ahead. "The public must still exercise great caution and control over personal spending and live within one’s means," he said.
As of December 31st 2008, total outstanding credit card debt owed by Malaysians stands at RM23 billion.
About The Association of Banks in Malaysia
The Association of Banks in Malaysia was formed in November 1973 with the primary objective of establishing and promoting a sound banking system in Malaysia in cooperation and consultation with Bank Negara Malaysia. Its members comprise the 22 commercial banks that currently operate in Malaysia.
Press Release – Page 3
ABM aims to facilitate, and create a conducive banking environment while promoting orderliness, and ethical banking practices. ABM also pursues wide-ranging issues to assist the industry in its efforts to remain competitive. Policies affecting banking infrastructure, interest rates and clearing system, as well as areas on consumer education, risk management, and human resource development are part of the ABM platform. Member banks’ contributions to socio-economic planning and development of the country are some of the issues that form ABM’s agenda. The public can also call a toll-free service called ABMConnect at 1-300-88-9980 for information on banking issues in the country. For more information, visit www.abm.org.my.
Source
Banking Info
Kuala Lumpur, February 12, 2009 – On behalf of its commercial bank members, The Association of Banks in Malaysia (ABM) is pleased to announce a downward revision of the interest rate to 13.5 percent per annum from the current 15 percent for "Tier-I" credit cardholders who promptly settle their monthly minimum payments for retail purchases for 12 consecutive months.
"Tier-II" cardholders who promptly settle their minimum payments for 10 months or more in a 12-month cycle will also benefit as the relevant interest rate will be reduced to 16 percent per annum from the current 17 percent. In addition, cardholders who do not fall within the two categories and who are generally termed "Tier-III" cardholders will see the interest rate for them come down to 17.5 percent per annum versus the current 18 percent.
To make it even easier for credit cardholders given the challenging year ahead, the present late payment fee of a minimum of RM10 or 1% of the total outstanding balance, subject to a maximum of RM100 will be revised to a minimum amount of RM5 and a maximum of RM75.
"The banks have listened and taken a lead in the region in effecting such reductions even though existing local credit card charges are already amongst the lowest in Asia (they range from 18% to 42% elsewhere in the region). Thus, the revisions not only demonstrate a reasonable, responsive and dynamic Malaysian financial system but are also in line with the underpinning principle of the tiered interest rate scheme which was introduced last year, that is, to encourage good repayment habits and financial discipline," explained ABM Chairman, Dato’ Sri Abdul Hamidy Abdul Hafiz.
Press Release – Page 2
Banks hope these latest measures will motivate credit cardholders to diligently make at least the monthly minimum payment of 5 percent of their total outstanding balance promptly since credit cardholders will now stand to have significant savings in the form of interest rate differentials of up to 4 percent when moving up the Tiers, i.e from 17.5% for "Tier-III" to 13.5% for "Tier-1".
The reductions in interest rates should give rise to savings for all credit cardholders to better enable them to make the minimum payment. It is also envisaged that more "Tier-I" credit cardholders can now afford to plan to settle their amount outstanding in full monthly. The different incremental margins of reduction in interest rates, Tier to Tier, of 1.5 percent (between
"Tier-III" and "Tier-II") and 2.5% (between "Tier-II" and "Tier-I") also serve to reward prudent repayment habits and instil strong management of personal finances.
These measures will take effect from March 31st 2009 to enable the banks to implement the requisite system changes and will be subject to further review from time to time and in any event, after a period of 12 months.
Dato’ Sri Abdul Hamidy went on to clarify that apart from funding costs, the other large components of costs in respect of credit cards are credit risk (non-performing credit) particularly since the amount outstanding is unsecured, fraud risk, infrastructure, administration and customer services costs. Credit risk costs would be expected to climb in a worsening economic environment. Under the circumstances, banks will be monitoring credit risk costs closely in the months ahead. "The public must still exercise great caution and control over personal spending and live within one’s means," he said.
As of December 31st 2008, total outstanding credit card debt owed by Malaysians stands at RM23 billion.
About The Association of Banks in Malaysia
The Association of Banks in Malaysia was formed in November 1973 with the primary objective of establishing and promoting a sound banking system in Malaysia in cooperation and consultation with Bank Negara Malaysia. Its members comprise the 22 commercial banks that currently operate in Malaysia.
Press Release – Page 3
ABM aims to facilitate, and create a conducive banking environment while promoting orderliness, and ethical banking practices. ABM also pursues wide-ranging issues to assist the industry in its efforts to remain competitive. Policies affecting banking infrastructure, interest rates and clearing system, as well as areas on consumer education, risk management, and human resource development are part of the ABM platform. Member banks’ contributions to socio-economic planning and development of the country are some of the issues that form ABM’s agenda. The public can also call a toll-free service called ABMConnect at 1-300-88-9980 for information on banking issues in the country. For more information, visit www.abm.org.my.
Source
Banking Info
IRB:Tax Cut for One Property
The Star
Thursday March 12, 2009
KUALA LUMPUR: The RM10,000 tax deduction for interest on housing loans will only be applicable for one property which is not being rented out.
The incentive, announced in the mini-budget on Tuesday, applies to Malaysian citizens who will live on the property, whether it’s a house. flat, apartment or condominium.
Inland Revenue Board (IRB) chief executive officer Datuk Hasmah Abdullah said the sales and purchase agreement for the property had to be executed between March 10, 2009, and Dec 31, 2010.
“The tax deduction is given for three consecutive years from the first year the housing loan interest is paid and is effective from the year of assessment 2009.
“Also, if there are two or more individuals who are eligible for the tax deduction, each individual is allowed a deduction which is proportionate to the interest they had paid,” she told a press conference yesterday.
Hasmah said this deduction, however, would not exceed RM10,000 in total.
At Parliament yesterday, Deputy Finance Minister Datuk Husni Hanadzlah tabled the Income Tax (Amendment) Bill 1967 to provide for the changes in the tax regime.
Hasmah explained the other tax incentives announced and said retrenched workers would now benefit from a higher tax exemption on the monies they received from voluntary or mutual separation schemes.
“Such workers are now eligible for a RM10,000 exemption per year of service as compared to RM6,000 before and this takes effect from July 1 last year.”
She added that those who were retrenched from July 1 last year and had received the RM6,000 exemption could file an appeal at the IRB to get the RM10,000 exemption.
Hasmah said banks had also agreed to observe a moratorium on housing loans for retrenched workers from March 10, 2009, to March 9, 2010.
“This means banks would not have to pay tax on the interest accrued for the 12 months, whereas the individual who takes the loan must be a citizen and would have to be retrenched from July 1 last year,” she said.
Hasmah added that for employers to benefit from the double tax deduction incentive for hiring retrenched workers, the position being filled would have to be a full-time one and the workers would have to be registered with the Human Resources Ministry.
Hasmah said businesses also stood to benefit from the introduction of carrying back of losses, renovation allowances and accelerated capital allowances for machinery.
For the carrying back of losses of up to RM100,000, Hasmah said it would apply for the years of assessment 2009 and 2010, and all businesses would be eligible including sole proprietors and partnerships.
As for the renovation allowance, it is limited to RM100,000 from March 10 this year till Dec 31, 2010.
There are 16 categories of renovations eligible for the allowance but consultation fees, fine art or antique items are not eligible.
Hasmah said accelerated capital allowances for machinery could now be claimed within two years instead of four.
For more information please visit http://drmortgage-at-work.blogspot.com/2009/03/tax-deduction-for-new-house-purchase.html
Thursday March 12, 2009
KUALA LUMPUR: The RM10,000 tax deduction for interest on housing loans will only be applicable for one property which is not being rented out.
The incentive, announced in the mini-budget on Tuesday, applies to Malaysian citizens who will live on the property, whether it’s a house. flat, apartment or condominium.
Inland Revenue Board (IRB) chief executive officer Datuk Hasmah Abdullah said the sales and purchase agreement for the property had to be executed between March 10, 2009, and Dec 31, 2010.
“The tax deduction is given for three consecutive years from the first year the housing loan interest is paid and is effective from the year of assessment 2009.
“Also, if there are two or more individuals who are eligible for the tax deduction, each individual is allowed a deduction which is proportionate to the interest they had paid,” she told a press conference yesterday.
Hasmah said this deduction, however, would not exceed RM10,000 in total.
At Parliament yesterday, Deputy Finance Minister Datuk Husni Hanadzlah tabled the Income Tax (Amendment) Bill 1967 to provide for the changes in the tax regime.
Hasmah explained the other tax incentives announced and said retrenched workers would now benefit from a higher tax exemption on the monies they received from voluntary or mutual separation schemes.
“Such workers are now eligible for a RM10,000 exemption per year of service as compared to RM6,000 before and this takes effect from July 1 last year.”
She added that those who were retrenched from July 1 last year and had received the RM6,000 exemption could file an appeal at the IRB to get the RM10,000 exemption.
Hasmah said banks had also agreed to observe a moratorium on housing loans for retrenched workers from March 10, 2009, to March 9, 2010.
“This means banks would not have to pay tax on the interest accrued for the 12 months, whereas the individual who takes the loan must be a citizen and would have to be retrenched from July 1 last year,” she said.
Hasmah added that for employers to benefit from the double tax deduction incentive for hiring retrenched workers, the position being filled would have to be a full-time one and the workers would have to be registered with the Human Resources Ministry.
Hasmah said businesses also stood to benefit from the introduction of carrying back of losses, renovation allowances and accelerated capital allowances for machinery.
For the carrying back of losses of up to RM100,000, Hasmah said it would apply for the years of assessment 2009 and 2010, and all businesses would be eligible including sole proprietors and partnerships.
As for the renovation allowance, it is limited to RM100,000 from March 10 this year till Dec 31, 2010.
There are 16 categories of renovations eligible for the allowance but consultation fees, fine art or antique items are not eligible.
Hasmah said accelerated capital allowances for machinery could now be claimed within two years instead of four.
For more information please visit http://drmortgage-at-work.blogspot.com/2009/03/tax-deduction-for-new-house-purchase.html
Wednesday, March 4, 2009
Friday, February 27, 2009
Maybank to reduce BLR next month
The Star
Thursday February 26, 2009
KUALA LUMPUR: Malayan Banking Bhd (Maybank) will reduce its base lending rate (BLR) from 5.95% to 5.55% effective March 2.
President and chief executive officer Datuk Seri Abdul Wahid Omar said the revision would enable all borrowers with loans pegged to the BLR to enjoy lower installments on their repayments.
The base financing rate (BFR) of Maybank Islamic Bhd will also be revised downwards from 5.95% to 5.55% effective the same date, Maybank said in a statement.
Maybank and Maybank Islamic last revised their BLR and BFR respectively on February 3, when rates were reduced from 6.5% to 5.95%.
Thursday February 26, 2009
KUALA LUMPUR: Malayan Banking Bhd (Maybank) will reduce its base lending rate (BLR) from 5.95% to 5.55% effective March 2.
President and chief executive officer Datuk Seri Abdul Wahid Omar said the revision would enable all borrowers with loans pegged to the BLR to enjoy lower installments on their repayments.
The base financing rate (BFR) of Maybank Islamic Bhd will also be revised downwards from 5.95% to 5.55% effective the same date, Maybank said in a statement.
Maybank and Maybank Islamic last revised their BLR and BFR respectively on February 3, when rates were reduced from 6.5% to 5.95%.
Thursday, February 26, 2009
Banks to cut loan repayments
The Star
Thursday February 26, 2009
PETALING JAYA: Banks will reduce loan instalment payments, an exercise that will be completed by the first quarter of this year, the Association of Banks said.
Customers who prefer to retain their repayment amounts need to get in touch with their banks, it said in a statement.
The association said that the move by all commercial banks to cut instalment amounts follows the request by the Government to help borrowers facing difficult economic times.
“Lower monthly loan repayments will allow for more disposable income to be in the hands of the public and we reaffirm our member banks’ commitment to continue to be reasonable as well as responsive to the public’s needs,” it said in a statement yesterday.
The association said the move to reduce repayments was now possible following Bank Negara’s announcement of the reduction in the Overnight Policy Rate on Tuesday.
That move would bring about the reduction in the base lending rates of banks.
With the reduction, the association said all commercial banks had agreed to cut loan repayment amounts across the board and maintain the original repayment period.
However, it said borrowers also had the option of maintaining their monthly instalment amounts and have a shorter repayment period.
The association said borrowers could consult their banks’ hotlines if they have queries on the proposed revision and other facilities.
The hotlines are published at the association’s website www.abm.org.my.
Customers can also call the association’s toll-free service ABMConnect at 1-300-88-9980.
Thursday February 26, 2009
PETALING JAYA: Banks will reduce loan instalment payments, an exercise that will be completed by the first quarter of this year, the Association of Banks said.
Customers who prefer to retain their repayment amounts need to get in touch with their banks, it said in a statement.
The association said that the move by all commercial banks to cut instalment amounts follows the request by the Government to help borrowers facing difficult economic times.
“Lower monthly loan repayments will allow for more disposable income to be in the hands of the public and we reaffirm our member banks’ commitment to continue to be reasonable as well as responsive to the public’s needs,” it said in a statement yesterday.
The association said the move to reduce repayments was now possible following Bank Negara’s announcement of the reduction in the Overnight Policy Rate on Tuesday.
That move would bring about the reduction in the base lending rates of banks.
With the reduction, the association said all commercial banks had agreed to cut loan repayment amounts across the board and maintain the original repayment period.
However, it said borrowers also had the option of maintaining their monthly instalment amounts and have a shorter repayment period.
The association said borrowers could consult their banks’ hotlines if they have queries on the proposed revision and other facilities.
The hotlines are published at the association’s website www.abm.org.my.
Customers can also call the association’s toll-free service ABMConnect at 1-300-88-9980.
Saturday, February 21, 2009
Monday, February 16, 2009
Ministry feels interest rate reduction not good enough
By MEERA VIJAYAN
The Star
JOHOR BARU: Credit cardholders clamoured for a cut in interest rates and the banks obliged.
But it’s not good enough, as far as the Domestic Trade and Consumer Affairs Ministry is concerned.
Although determining interest rates is out of its jurisdiction, the ministry wants to get involved as the issue concerned the interest of consumers.
Ministry secretary-general Datuk Mohd Zain Mohd Dom said he would meet with Bank Negara and financial institutions, possibly this week, to seek a further reduction in credit card interest rates.
He said minister Datuk Shahrir Abdul Samad wanted the meeting held soon, adding that it was the ministry’s view that the interest rate reduction announced by the Association of Banks on Thursday “was not good enough”.
“I can’t deny that the interest rates are still high. Although the interest rates have come down, we can’t sit still and say it cannot be reduced by more,” he said here yesterday.
The association had announced that credit card interest rates and penalty fees were going down, with cardholders who paid at least the minimum amount promptly over 12 consecutive months (Tier-I) to pay 13.5% in annual interest from March 31, from the present 15%.
For those who paid promptly for at least 10 consecutive months (Tier-II), the interest rate will be 16%, down from 17%.
For those who did not fall into both these categories (Tier-III), the interest rate will be 17.5%, a minimal 0.5% reduction from 18%.
The present minimum late payment fee of RM10, or 1% of the total outstanding balance will also be reduced to RM5, and the RM100 maximum fee cut to RM75.
However, consumer groups said the reductions were too low, adding that the Tier III reduction of 0.5% was insignificant.
“The total credit card debt is RM23bil, and most of those affected are in Tier III. This is the group which needs help,” said a consumer official.
Mohd Zain said banks could be persuaded to further reduce credit card interest rates if Bank Negara, as the regulating body, supported such me asures.
The reduction was also criticised by consumers who felt the Tier III concession was too little and insufficient to help them get out of debt.
There are 10.3 million cardholders in the country.
Federation of Malaysian Consumers Association (Fomca) president Datuk N. Marimuthu said banks had to offer substantial interest rate cuts if they were serious about helping consumers counter economic dif ficulties.
He urged banks to slash interest rates “without waiting for ins tructions.”
The Star
JOHOR BARU: Credit cardholders clamoured for a cut in interest rates and the banks obliged.
But it’s not good enough, as far as the Domestic Trade and Consumer Affairs Ministry is concerned.
Although determining interest rates is out of its jurisdiction, the ministry wants to get involved as the issue concerned the interest of consumers.
Ministry secretary-general Datuk Mohd Zain Mohd Dom said he would meet with Bank Negara and financial institutions, possibly this week, to seek a further reduction in credit card interest rates.
He said minister Datuk Shahrir Abdul Samad wanted the meeting held soon, adding that it was the ministry’s view that the interest rate reduction announced by the Association of Banks on Thursday “was not good enough”.
“I can’t deny that the interest rates are still high. Although the interest rates have come down, we can’t sit still and say it cannot be reduced by more,” he said here yesterday.
The association had announced that credit card interest rates and penalty fees were going down, with cardholders who paid at least the minimum amount promptly over 12 consecutive months (Tier-I) to pay 13.5% in annual interest from March 31, from the present 15%.
For those who paid promptly for at least 10 consecutive months (Tier-II), the interest rate will be 16%, down from 17%.
For those who did not fall into both these categories (Tier-III), the interest rate will be 17.5%, a minimal 0.5% reduction from 18%.
The present minimum late payment fee of RM10, or 1% of the total outstanding balance will also be reduced to RM5, and the RM100 maximum fee cut to RM75.
However, consumer groups said the reductions were too low, adding that the Tier III reduction of 0.5% was insignificant.
“The total credit card debt is RM23bil, and most of those affected are in Tier III. This is the group which needs help,” said a consumer official.
Mohd Zain said banks could be persuaded to further reduce credit card interest rates if Bank Negara, as the regulating body, supported such me asures.
The reduction was also criticised by consumers who felt the Tier III concession was too little and insufficient to help them get out of debt.
There are 10.3 million cardholders in the country.
Federation of Malaysian Consumers Association (Fomca) president Datuk N. Marimuthu said banks had to offer substantial interest rate cuts if they were serious about helping consumers counter economic dif ficulties.
He urged banks to slash interest rates “without waiting for ins tructions.”
Thursday, February 5, 2009
Be carefull on the fine prints when you buy Auction Properties
When you buy any auction properties please make sure that you get a copy of Proclaimation of Sale (POS) from the auctioner before you bid for the property. There are a lot of Terms and Conditions that you will need to be aware before making a decision to bid.
2 months,ago I accepted a case to finance an auction properties. What actually happen is that the buyer tought that the Auction Bank will pay for all outstanding fees owed by the actual owner. When our Legal Firm wrote to claim from the aution Bank on the fees, the Bank paid everything except the interest on the maintenance fee acccumulated for the past 5 years totalling RM3,000.00. The customer argued that the Bank should pay for the interest but when I look back at POS, it stated very clearly under the Terms and Conditions that the buyer will have to pay the interest. There is no point arguing with the Bank on this issue.
For more info on Auction Properties please read my previous post on " 10 tips on Buying Auction Properties" http://drmortgage-at-work.blogspot.com/2008/06/tips-on-buying-auction-properties.html#links
From the Desk of
Michael Yeoh
Banks Latest Base Lending Rate (BLR)
The following is the Latest updated BLR from all banks in Malaysia as of 6th March 2009
- Alliance Bank Malaysia Berhad - 5.55%
- Affin Bank Berhad - 5.50%
- AmBank (M) Berhad - 5.55%
- Bank of America Malaysia Berhad - 5.55%
- Bangkok Bank Berhad - 5.55%
- Bank of China (Malaysia) Berhad - 5.55%
- Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad - 5.25%
- CIMB Bank Berhad - 5.55%
- Citibank Berhad - 5.60%
- Deutsche Bank (Malaysia) Berhad - 5.55%
- EON Bank Berhad - 5.55%
- Hong Leong Bank Berhad - 5.55%
- HSBC Bank Malaysia Berhad - 5.55%
- J.P. Morgan Chase Bank Berhad - 5.25%
- Malayan Banking Berhad - 5.5%
- OCBC Bank (Malaysia) Berhad - 5.55%
- Public Bank Berhad - 5.55%
- RHB Bank Berhad - 5.55%
- Standard Chartered Bank Malaysia Berhad - 5.55%
- The Bank of Nova Scotia Berhad - 5.55%
- The Royal Bank of Scotland Berhad - 5.25%
- United Overseas Bank (Malaysia) Berhad - 5.55%
From the Desk of
Michael Yeoh
Monday, February 2, 2009
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