Property Price to Aim
Remarks*Picture figure estimation include credit card debt without any outstanding balance and excluding all other debts/commitments (meaning, if you have commitment debt such as Hire Purchase loan, Personal Loan, Amanah Saham, your Property Price estimation would differ)
Youngster always asked this question “What’s the property price that I could afford to buy?”
The answer showed in the table.
For youngster age 22-24 who had just started working would find their salary range between Rm2500 – Rm5000. For those whose income started from RM4000 and above should consider themselves super lucky or put it this way, super capable.
Let me explain few things here:
- For Gross income, it haven’t deduct EPF, SOSCO and TAX.
- Gross income includes (Basic salary, allowance, OT, Bonus, Commission, Fixed Deposit, ASB dividends, Shares dividends and Tenancy rental agreement)
- The property price has a range for each gross income group, because this estimation based on 12 banks calculation. Different bank has different Debt service ratio and different debt service ratio calculation policy.
- Why only credit card included in the table?
When you apply Credit card, CCRIS will show your payment record for credit card. Hence, bank able to assess your credit payment pattern, whereby it will increase your credit scoring in loan approval. If your CCRIS is clean, chances for bank approving your loan will be very low.
If your credit card outstanding balance is zero, bank doesn’t need to deduct any debt/commitment from your Net income. Hence you are able to buy higher price property.
That’s why, at least have a credit card.
- What’s credit scoring?
Credit scoring formulated by bank internal credit controller, purpose is to assess client’s profile before approving their loan. Credit scoring assess includes (CCRIS, CTOS, company background, family members, currently staying rented or own mortgage, education level and etc.)
The main scoring comes from CCRIS and CTOS.
CCRIS scoring will based on type of loan facility, credit limit, outstanding debt and your payment record. Hence, when applying for loan, it is essential to have at least a credit card… at leassst…