1. If the property market value is higher than the selling value, hence,you can mark up the property price.
Market value of property A is RM650,000
In contract selling Rm500,000 to you, but borrowing RM650,000 from bank
90% of RM650,000 = RM585,000
RM585,000 – RM500,000 =RM85,000 extra cash out
Can use RM85,000 to pay off 10% down payment
However, bank doesn’t favor mark up kinda thing, so do it discreetly if you do happen to play with it.
To perform this, make sure you have seller consent, and use lawyer to draft contract for this deal.
Mark up property means the price marked up in accordance to open market value. Some vendors willing to cut down the price to obtain peace of mind. However, some borrower/purchaser may not have sufficient fund to cover costs such as down payment, renovation cost, financing entry cost and miscellaneous cost. The mark up price will serve as extra fund from financial institution to cover the costing from borrower/purchaser. Be aware that the mark up price must be agreed by bank appointed valuer and do inform your mortgage consultant banker this mark up price remain private