Thursday, April 7, 2011

70% Loan To Value (LTV) Ratio

Few months ago, Malaysia government implement a LTV ratio of 70% for purchase of third properties and onward. Some confusion arise due to this new rules, for example:ase

1. If I have joint name with my wife for first two properties, does it means I only can loan 70% max for third property?
2. If my first or second property loan is fully settled, do I limit by the 70% loan rules?
3. If I have sold my first or second property, S&P signed but transaction still in progress, am I limit by the 70% loan rules?

Just have a chat with a property agent today, according to him, LTV rules is calculated based on number of property loan you are serving currently, NOT number of S&P you have your name on it. If his explanation is correct, it means, answer to three question above are:

1. Yes
2. No
3. Not really sure, probably no, as you may show your S&P to the bank when apply for loan.

Please share if you have more information about this new rules ....
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1 comment:

  1. Chuck BushAugust 28, 2026 at 5:58 PM

    I agree that understanding how banks assess existing loans is important before making another investment decision. LTV limits can have a significant impact on the amount of financing available and the cash required upfront. It is also worth comparing current lending options and reviewing existing mortgage commitments from time to time. For homeowners considering refinancing, checking the UOB refinance home loan rate alongside other available rates can help determine whether refinancing could offer better terms. Overall, this is a useful reminder to understand the financing rules before purchasing another property.

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