Category: Finance (4)

how_to_check_ccris_credit_report_malaysia

CCRIS stands for Central Credit Reference Information System. It is a system created by Bank Negara Malaysia (BNM) which synthesizes credit information about a borrower or potential borrowers into standardized credit reports. The information is available to financial institutions (Banks) and the individuals (or company directors) themselves upon request.

 

Individual banks’ systems are typically already tightly integrated to the CCRIS system and automatically extract an individual’s/entity’s credit report during the credit approval process.

 

Every participating financial institution (Includes all licensed commercial banks, Islamic banks, investment banks, development banks, some of insurance companies, payment instrument issuers and rehabilitation institutions) is required to submit their customer’s credit conduct to this centralised system.

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10 Things You Should Know Before Refinancing

There’s more than one way to tie a shoe, and many more ways to botch a refinancing concern. The following are the top 10 mistakes refinancers make:

  1. Automatically refinancing with your current lender without shopping around
  2. Assuming lower rates will automatically save you money without considering overall cost versus savings
  3. Procrastinating over applying for a home loan while waiting for interest rates to drop. Don’t gamble on better future rates.
  4. Failing to get your new rate locked in writing
  5. Not doing your sums. Decreasing your interest rate by at least 0.75% to 1% will save you about $100 a month on a $150,000 mortgage
  6. Switching loans or lenders without clarifying whether the total costs (including establishment fees, legal fees, stamp duty fees, ongoing fees) are outweighed by the savings in interest
  7. Not having a lender or broker evaluate your credit rating and regularly revise your financial position
  8. Not knowing the true cost of refinancing. Make sure your lender provides you with written statements on application fees, deferred establishment fees, or break costs on fixed loans.
  9. Falling prey to the lure of honeymoon rates, which ultimately revert back to their original or higher rates at the end of the introductory period.
  10. Taking out money to pay off credit cards with no intention of changing spending behavior, racking up further debts while drawing out more home equity. Don’t turn what could be a short-term debt into a long-term debt
Mar
15

Housing Loans

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Introduction

Buying a house is an exciting event. It will probably be the biggest purchase you will ever make in your life. Understanding the steps involved in securing a housing loan will help you save time and avoid uncertainty and anxiety.This information in the following pages will give you an insight into the various issues on financing a house and outlines the major steps in the overall process of financing a house. It guides you through the basics, explains the technical terms and gives you invaluable tips on financing a house.

 

Buying a House

Buying a house is a major step, so it deserves careful thought and planning. If you are buying a property under construction, you should check the background of the developer. You should ensure that the developer:

  • Has a valid licence issued by the Ministry of Housing and Local Government which is still in force (not expired)
  • Has a valid advertising and selling permit issued by respective local authority which is still in force
  • You have the right to enquire from the developer, information on licence and permit. You can also refer to the Ministry of Housing and Local Government for further clarification. A developer with a good track record reduces the risk of the project being abandoned.

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These are the basic information that every home buyer should equip themselves with pertaining to Base Lending Rate.

ec-realtycom
What is Base Lending Rate (BLR)?

  • A minimum interest rate calculated by financial institutions based on a formula which takes into account the institutions cost of funds and other administrative costs.
  • Typically similar amongst major banks.
  • Adjustments to the BLR are made by banks at the almost same time, though not regularly.
  • BLR adjustments correlate with adjustments of the Overnight Policy Rate (OPR) which is determined by Bank Negara Malaysia (BNM) during Monetary Policy Meeting
  • Effective 1 November 1995, BNM imposed a ceiling on the BLRs quoted by banking institutions. The ceiling rate would be determined by a formula. This framework was further revised on 1 September 1998 to enhance the speed of transmission of changes in BNM’s monetary policy (via revisions to intervention rate and SSR) to changes in the economy’s interest rate levels.
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