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Buying a home can be one of the most stressful events in one’s life – especially if it is your first time. Where should you start? Can you afford your dream home? What about all the legalities and the hidden costs everyone talks about? Yes, it is a highly stressful time. We understand and are here to help with these 10 most asked questions by our readers and fans. As you scroll through hundreds of property listings, these questions will likely run through your mind. Don’t freak out, read on! 10 First Home Buying Questions 1. How would I be eligible for a housing loan?2. Should I refinance my home?3. How do I save up for the down payment?4. How can I get a 100% housing loan?5. How do I value my house?6. Can I get cash from my home?7. Why would the bank reject my housing loan application?8. How do I safeguard myself if the OPR increases?9. Should I get a mortgage life insurance?10. Should I get a basic term home loan or a flexi home loan? 1. How would I be eligible for a housing loan? Housing loan eligibility depends heavily on your monthly income and existing loan commitments. These can be personal loans, the dreaded but inseparable credit cards, or other bank loans, including softer ones like ASB. The banks will check your CCRIS report to see all your active loans and payment status. Thus, it is crucial to ensure all your loans and credit cards are up to date. Then, the banks will decide how much you are eligible for and your risk as a borrower. To find out how much you need to pay based on the price of a home, you may use this home loan calculator by iMoney Malaysia. 2. Should I refinance my home? Many homeowners do just that to earn extra cash—though it is very normal and you may have friends, relatives, and neighbours doing it, don’t do it for the wrong reason! Here are 3 things you need to know about refinancing your property, according to HSBC Malaysia: You use your property’s rising value to obtain a larger financing amount. Your refinanced loan pays off your current housing loan. You are free to use the balance as you wish. However, only do it if there is a valid reason why you need the money. 3. How do I save up for the down payment? This depends entirely on yourself. Down payments usually make up 10% of the asking price, depending on your margin of finance (the total loan amount you are eligible for). Remember, this 10% can be withdrawn from Account 2 of your Employee Provident Fund (EPF)! With EPF’s introduction of Account 3, you can also consider withdrawing from Account 3 to help with any costs incurred during the home buying. 4. How can I get a 100% housing loan? If you are unable to save up 10% of the down payment, you can still consider buying a home through various government subsidised schemes, such as: My First Home Scheme or Skim Rumah Pertamaku (SRP) – If your monthly income is RM5,000 and below, you can get 100% financing for a residential property. In Budget 2025, the government also clarified that it is committed to providing more avenues for first-time house buyers through further initiatives and programmes. However, it’s also important to note that you can pay the down payment using money from your EPF Account 2, which allows for withdrawal for homebuying purposes. For this reason, it is imperative that you do your own research and find the best home loan rates in Malaysia. 5. How do I value my house? For sub-sale (a pre-owned home), you need to do a house valuation to determine the property's market value. Former owners may set a price according to the market, but it is always good to have second, third, or as many opinions as possible. (Careful, though; too many will confuse you, so stick to reliable sources.) You can also check the classified sections on online and offline media or talk to a few property agents to get an idea. Banks usually do valuations to gauge the loan amount to offer, but you can also do them yourself to determine if the selling price is according to the market value. However, only get the valuation done by an accredited agency for better accuracy. Keep in mind that sometimes, your valuation price may not be accurate at all. 6. Can I get cash from my home? Your home is your asset, and its value will likely go up. However, how good is the home if you can’t get cash out of it when needed? Be it for your child’s college education or to purchase your second property, consider these few ways to free up your home equity or refinance your home. 7. Why would the bank reject my housing loan application? There are various factors banks look into when approving a housing loan application. The factors range from the property’s location, borrower’s income, lack of a credit facilities record (it pays to have a credit card that you pay punctually), bad CCRIS reports, or the debt service ratio (DSR) may be over the maximum limit. Therefore, it is essential to keep a clear record by making your existing loan payments on time. 8. How do I safeguard myself if the OPR increases? Most property loans available in Malaysia are based on the Overnight Policy Rate (OPR), which is currently set at 3%. You can read more about OPR and how it affects your loan. To safeguard oneself from the volatility of OPR, one can consider a fixed rate home loan. 9. Should I get a mortgage life insurance? As the household's primary breadwinner, buying a home for your dependents is just half of the battle. You must ensure that your loved ones are protected as well, in the event you can no longer pay the mortgage of your house. This is where mortgage life insurance comes into the picture. You can either get a Mortgage Reducing Term Assurance (MRTA) or a Mortgage Level Term Assurance (MLTA) to safeguard your home in the event of death or total permanent disability (TPD). Find out which one suits your needs in our MRTA versus MLTA comparison. 10. Should I get a basic term home loan or a flexi home loan? The difference between a conventional home loan and a flexi one lies in how much you can pay monthly. Going for a basic term loan makes more sense if you are a fixed salary worker, as you pay a set monthly amount for the entire tenure. The drawback is that you won’t be able to save on interest charges if you decide to pay a lump sum or more every month. Unlike flexi loan, you can make an advance payment to lower your loan interest and withdraw the additional costs you’ve made whenever you like, without complicated procedures. However, usually flexi loans come with a fixed monthly fee (usually RM10 per month) to maintain the current account. Compare the basic term, semi-flexi, and full-flexi home loans to determine the type of loan that is suitable for your income. As a first-time home buyer, you will have many questions about buying your first home, but these 10 are likely to pop into your head first. With these answered, you should have more confidence in getting your first home. This article is a joint effort by iMoney, a leading provider of mortgage loan solutions, and IQI Global. Interested in purchasing your very first dream home? Here at IQI, we provide services in purchasing the perfect home, with the right budget. Please leave your details below, and our professional team will assist you. [hubspot portal="5699703" id="85ebae59-f425-419b-a59d-3531ad1df948" type="form"] Continue Reading B40 and M40: 5 Government Housing Schemes Available For You Need Some Tips for Buying A Home in Your 20’s? Learn From These First Home Buyers’ Experiences! 15 Things First-Time Homebuyers Wish They Knew Before Buying Their First House

We all have our own visions of the perfect home, but the realities of the process can sometimes catch us off guard. If only there was a way to tap into the collective wisdom of those who have been there before... Well, now you can! We've scoured the internet to bring you real insights from first-time homebuyers who have shared the 15 things they wish they knew, so that you don't make the same mistakes. 15 tips to learn from other first homebuyers Be ready to spend more Pinpoint your priorities For landed homeowners, check your lawn! You'll gain an extra skill Location is number one! Be very, very sure about your future home If fixing-upping isn't your thing... Factor in more time than you anticipated Your budget is everything Have backup funds at hand Take care of your house! Water can be a running issue No time? Leave it to the pros A home is an investment, through and through At the end of the day... 1. Be ready to spend more Comment by u/TanLimes from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners Be sure to factor in the time and money you'll be investing. Because at the end of the day, we all know you'll have even less of it than you think.   2. Pinpoint your priorities Comment by u/OrangeCosmos from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners As they say, Rome wasn't built in a day. Take your time, and know your priorities.   3. For landed homeowners, check your lawn! Comment by u/WashuWaifu from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners The grass is greener on the other side...? No, it's green where you water it.   4. You'll gain an extra skill Comment by u/IHate2ChooseUserName from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners Building a house is not for the weak. But you'll gain a home out of it. And some pretty darn good building skills.   5. Location is number one! Comment by u/Cocopanda14 from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners That's why they say: Location, location, location. If there's one thing you shouldn't compromise on, it's this.   6. Be very, very sure about your future home Comment by u/UrBigBro from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners A single home viewing can only show you so much. Your home will most likely be a place where you'll be staying your whole life.  Take some time to see the location at various times. Be prepared for anything that may lie your way!   7. If fixing-upping isn't your thing... Comment by u/velvet_milkman__ from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners Looking for something easy? Skip the hassle - just get a brand new home.   8. Factor in more time than you anticipated Comment by u/johnny_soup1 from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners Helps you build resilience.   9. Your budget is everything Buying a home is like choosing a pizza topping – go for what you love, but make sure you can afford the extra cheese! — Vinay ? (@vinaywashere) August 9, 2023 A lot of unexpected costs can surface. Make sure you're ready to commit to it!   10. Have backup funds at hand Prioritize an emergency fund over vacations, meals out, entertainment, new car, etc. Unexpected repairs will come up at the worst time. — Prajna Shorts ????? (@prajna541) August 10, 2023 Becoming a homeowner may mean you have to leave some expenses behind.  Whatever the situation, just ensure you have some emergency cash for those unexpected repairs!   11. Take care of your house! Comment by u/MGallows13 from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners Maintenance is not something you should postpone!   12. Water can be a running issue Comment by u/notsumidiot2 from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners It may seem like a minor thing at first, but eventually you'll find out why it's important.   13. No time? Leave it to the pros Comment by u/sirguynate from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners What you don't pay in money, you pay in time.   14. A home is an investment, through and through Comment by u/adambulb from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners Your home is your security. Just like any other investment you'll make, it won't be perfect. But you have a home under your name, and that's an amazing feat that should be celebrated!   15. At the end of the day... Comment by from discussion What’s something you’ve learned after becoming a first time homeowner? in homeowners Of course in the end, everyone has a lot to say. But what matters most is you have a roof over your head to call home. Looking to buy your first home? Consult with our professionals who will help you from A to Z! Leave your details below and we will get in touch with you as soon as possible. [hubspot type=form portal=5699703 id=2380afe3-ad4c-4cfa-9abf-d3947e377bf2]