I have purchased here but am still waiting for my Mortgage offer to come through, I know there has been quite a few 'issues' with the Mortgage offered to purchasers by Scotia Bank. I was wondering what are the terms of the Mortgage been offered? I hear lots of people having queries but no where can I find out the Mortgage offer details. I specifically would like to know what is the rate been offered (interest only during construction and repayment afterwards), I have also heard that there is a penalty for early settlement?

Obviously, I'm not after personal details but am now considering whether to go for a UK based Mortgage instead. Not only it seems are the terms been offered not great but it is the time it's taking (I first applied 8/9 Months ago).

Cheers
Stu

Hi Stu,

I knew it takes ages to get a mortgage in Malaysia, but I didnt think you would have to wait 8-9 months.

The latest info I have available on Malaysian mortgages is what I have recently been emailed in an offer for Sepang Gold Coast and that is as follows:

Asian Finance Bank –

· Maximum margin of finance of up to 70%

· Interest at Base Lending Rate + 0.75% to 1.00% (depends on qualification, current BLR is 6.75%)

· No early redemption penalty

· After 3 years the rate will go from the above offer to BLR + 1.75.



Bank of Nova Scotia –

· Maximum margin of finance of up to 70%

· Interest Rate: 7.5% variable.

· 5 year early redemption penalty – 3%

· Loan to value can be extended after completion to 70% of current market value without incurring redemption.



CIMB –

· Maximum margin of finance up to 60% only

· Interest rate : BLR + 0% (current BLR is 6.75%)

· Mortgage Reducing Term Assurance is compulsory



Not sure if this is what you were after, but as I havent applied for a Malaysian mortgage I cant help further im afraid.

Thanks for this Rumpola, superb. The only contact I have had from any Bank is Scotia Bank and they just keep asking for more documentary evidence of my incomings/outgoings. I supplied all this to them last summer but they now want a lot of it again, I guess so much time has passed that as far as they are concerned my circumstances may have changed (they haven't).

I am now considering getting a UK based Mortgage as not only is the BLR lower here, it should just be a lot less hassle.

Have you actually bought on the Palm?

It would be interesting to hear any other comments/stories about people who have invested here.

I still think this is a very good investment, it's just the Mortgage side of it that is letting it down and creating a poor impression.

Hi Stu,

I havent bought on the Palm, although if I had the finances available, I would be very seriously considering it, as I feel this is one of the better investment projects around at this time. 15 years at a minimum of 8% NET sounds very good to me.

The reason I know a lot about this project, is I am very good friends with the european master agents for SGC (Asset Property Brokers), and i also know a few people that have bought there, and every one is happy with the situation so far, except with the mortgages. To be fair, I dont know of many developments around that are ahead of schedule in terms of build!!

The mortgage situation does seem to be the only bug bear with this at the moment, as it does take a minimum of 3-4 months to get an agreement in place, and I do know of one guy that has gone down the UK mortgage route.

From what I have seen the next phase is looking very nice as well.

Always useful to know the Master Agents (APB)!

I have heard nothing about the next phase yet (not that I have any money left!), do you have any details?

Shame the PM function doesn't work on this board, it's always useful to know people who are 'in the know'.

Oh, BTW the guaranteed rents START at 8% but are only actually guaranteed for 2 years NOT 15. They forsee 8% for 15 years but it's NOT guaranteed.

Thanks again for the info Rumpola.

Hi Stu,

So I have just been informed, the new phase is due to be launched at the end of this week.

The properties are land based instead of being over the Straits of Mallaca. Prices starting from £88K. They are putting the same rental agreement in place too.

Apparently the penthouse units have their own pool, gym and jacuzzi too.

You are right that the guaranteed rental is only guaranteed at 8% for the first 2 years.

Sorry, the prices are due to start from £73K up to £375K for the p/houses with gym, jacuzzi and pool.

I've bought a property in KL and I applied for a mortgage through CIMB on 1st Feb and haven't heard a thing since!

I have just been informed by BNS that I have been approved a Mortgage with them. I am yet to get all the paperwork through so we'll see what it says.

I am not surprised you haven't heard anything from CIMB yet. Going by my own experience and from what I have heard from others the Malaysian Banks are very slow with handling loan applications. Apparently 4/5 Months is quite normal.

Malaysian Bank workers must have very long Lunch breaks!

Hi Stu,

I wonder how it went with your mortgage offer from BNS?

Also, is there a forum where other buyers of golden palm are posting? I seem to recall there is a rather long thread here once, but can't seem to find it?

What are people's thoughts on the leaseback agreement? I find it rather one sided, especially the 30 days notice of termination from the developer as opposed to the 6 month's owner's notice, etc etc.

Did anyone have the sales and purchase contract ammended, by the way? Or the leaseback agreement for that matter?

And what are the general view on the leasehold status? Will it be a problem come time to sell?

I am STILL waiting to hear about the mortgage application. It seems the local Malaysian banks are not so willing to lend on this development. I wonder why? If they do lend, the rates are not competitive at all!

Any help appreciated.

Thanks.

Hi Ros,

I could be wrong, but I seem to recall hearing that there are actually two versions of the leaseback agreement. One is with the terms similar to what you've sited, the other with slightly better terms.

I am not a buyer here, hence can't really help nor comment much. Perhaps other buyers would be able to shed some light on this.

Thanks momo2,

It has been many months now, and I am beginning to wonder if there are any buyers left on this development. I have posted on 2 other forums, which has been quiet for a while, so not sure if anyone is left that is still proceeding with their purchase. Don't blame them though, for I myself am getting fed up with the long wait. 9 months and counting!