Buying a home to call your own is one of the biggest financial challenges that you’d face nowadays. But when looking at the problem, there are in fact three major obstacles that prevent Malaysians from successfully purchasing a property.

Reason 1: Poor Understanding Of Financial Status

Based on a recent survey by CTOS (Credit Tip-Off Service), approximately 6 out of every 10 people in Malaysia have never looked up their credit report. However, by not doing so, it can lead to major financial problems in the future, particularly when it’s time to buy a property of your own!

The health of your credit report depends on a variety of major factors such as whether you served as a guarantor, timely credit card payments as well as multiple active loans or credit applications, to name a few. According to experts, it’s important to be aware of your credit report and any financial issues that need to be addressed.

Apart from boosting the chance of your housing loan application getting approved, people with high credit scores generally qualify for higher loan margin and lower interest rates. Now, wouldn’t that be something worth looking into?

 

Solution: Free Financial Health Check

Take advantage of Gamuda Land’s GL H.O.M.E [Home Ownership Made Easy] campaign, where you’ll be able to receive the assistance of the developer’s Relationship Personnel. They can provide services such as an instant check on your credit scoring and loan eligibility. The reports and scores can help you understand your financial well-being and borrowing capability, making your home purchase faster and hassle-free.

 

Reason 2: Insufficient Home Loan Amount

There have been plenty of cases where potential homebuyers overestimate their purchasing power when it comes to closing the deal for their dream home. For example, if you had a healthy credit score, you’d think that it would be easy to get a home loan with a 90% loan-to-value (LTV) ratio.

However, what if you’ve already put down a hefty booking fee to secure your unit, only to find out that the bank is willing to approve a home loan of only up to 75%? Most homebuyers, faced with this unanticipated shortfall in cash, might end up forfeiting on the entire deal altogether.

In addition, the downpayment isn’t the only thing that you’d need to take into account. You’d also need to have enough cash on hand to pay for additional costs like the legal fees and stamp duty. Are you ready for those?

 

Solution: Differential Sum Assistance

Don’t let your dream of buying that home be ruined by an unexpected shortfall caused by a lower loan-to-value (LTV). Now, if you had bought a home under the GL H.O.M.Eplan, you wouldn’t even have to scramble to raise enough funds in a short span of time.

The developer’s Relationship Personnel can provide bespoke solutions to help you own your dream home. There are 3 plans currently being offered by Gamuda Land:

HOMEassist: Extend your differential sum payment up to 5 years in equal monthly installment at zero interest.HOMEezy: Interest free credit card installment.HOMEconvert: Move in immediately with only 5% downpayment.

 

Reason 3: Not Enough Savings For Monthly Repayments

A 2018 study by Malaysia’s Debt Management and Counselling Agency (AKPK) revealed that a large number of Malaysians are struggling to save money. For instance, 20% of adult respondents were not able to set aside money over the past 6 months.

If such is the case, what happens when a young adult were to take on the financial responsibility of purchasing a property, only to one day find that money for even basic necessities was tight? With little to no savings, this would mean that the monthly home loan repayments would be out of the question.

As a result, he/she might be forced to default on the home loan, which would mean that the bank will step in to seize all assets and unfortunately, foreclose on the property as well.