Today, the Malaysian Prime Minister Abdullah Ahmad Badawi announced a huge development project called the Northern Corridor Economic Region (NCER) expected to attract billions of investments into the region.

This is of course, is going to raise property prices at the region by at least 3 per cent, a report said.

My partner exclaimed, Read more »

I am eyeing the progress of the Second Penang Bridge like a hawk and with great interest. So pardon me if you find there are more news about Penang than other areas. Can’t help it because Read more »

Yippee! Finally My Home Malaysia have a new look! Revamped the whole site and gave it a makeover. How does it look? Need feedback from the kind readers out there.

I’ve been slogging over this for many many hours, so that it can look the best to the readers. So must give your honest feedback so that it can serve you better, ok?

Thank you in advanced!

As a property site, it can’t be complete without some news about property launches. We will keep a watch out for property launches to keep you updated. If you have any news or tip-offs about property launches, you know you would want to share it with us as it will benefit you and our readers. Drop us an email at myhomemalaysia@gmail.com. Read on for our first instalment of property launch news. Read more »

Hi Everyone,

Apologize for the late release of this article. I’ve been overseas for the past month on a business trip. Anywayz here’s an article to keep my Key learning’s series going

•  Lesson 2.2 - Bank Loan Agreement

Bank loan agreement is an agreement between the bank and you. Basically it can consists up to 3 different agreements namely

1. Facility Agreement
2. Power Of Attorney
3. Deed Of Assignment / Title Charge

Firstly the Facility Agreement  is an agreement made between you (the borrower) and the bank. This agreement basically consists of all the terms and conditions which has been set forth in the Letter of offer. Do note that different banks have different Facility Agreements. Your Lawyers would need to purchase this document from the bank.

Secondly, Deed Of Assignment is a temporary agreement made between you and the bank to ”Assign” the property to the bank as a guarantee. Deed of Assignment is only required for properties that has yet to obtain their individual land titles. Upon obtaining the land title for the property, another agreement will be executed to charge the Land Title to the bank.

Lastly, Power of Attorney, is an agreement between you (the Donor) and the Bank to appoint the Bank’s panel of lawyers to look after your rights as a borrower as well as the banks rights in the event of a dispute. Among the tenets of the agrreement is a clause for the Attorney to sell away the prperty in the event of a default.

The cost of the agreements varies with the loan quantum ie the higher your loan amount the more you will need to fork out to pay the lawyers :) 

Rule of thumb, - Estimated Legal Fees (percentage off the Loan Quantum)

• 1% of the Loan Quantum for the Facility Agreement
• 0.1% for Deed Of Assignment 
• 0.1% for Power of Attorney.

Lastly, you will need to factor in the cost of Stamping Duty. For Loan agreements, the stamping duty is set at 0.5% * Loan Quntum.

Let me conclude my article with an example. For a Loan Quantum of RM 300,000, here’s a breakdown of the estimated legal fees

• Facility Agreement  (1% * RM300, 000)               ~RM3000
• Deed of Assignment (0.1%* RM300, 000)           ~RM  300
• Power of Attorney  (0.1% * RM300, 000)            ~RM  300
• Stamp Duty           (0.5% * RM300, 000)            ~RM1500

Total costs = RM5100

Tip :- Always remember to Read more »

When I saw this news, I was immediately attracted to it. China lending us money to build Penang’s second bridge? hmm… interesting. Let’s keep our fingers crossed that the bridge will truly go through. Read on to satisfy your curiosity. Read more »