Year 2010 Credit card service tax - How are you going to react?

Under the Budget for year 2010, the government would impose an annual RM50 service tax on each principal credit and charge card, including free cards, and RM25 for each supplementary card from January next year.

What might happens will be:

1. The banks decide to implement the service tax waiver for selective or all clients.
2. The cardholders with unused credit cards may decide to cancel them.
3. Credit cards balance transfer to single credit card.
4. Apply for personal loan to terminate credit cards with substantial outstanding.
5. Source for funds to settle credit cards with outstanding balance.

This measure is expected to promote prudent spending with the number of credit cards having increased from more than 2 million in 1997 to 11 million as at August 2009, excluding 285,000 charge cards. Analysts said the impact of the service charge on credit cards was expected to be “mildly negative” for the banking industry. A Kenanga Research analyst who covers the sector said credit card loans in the country’s banking industry made up less than 5% of total loans.

Jupiter Securities head of research Pong Teng Siew said he was expecting about 25% of current cardholders, especially those with more than one card, to cancel their inactive cards following this proposal.

Only those Banks depended on their credit segment to drive growth for these past years will experience substantial impact on their profitabilities. ECM Libra said the service tax could well see the banking system incur up to RM542.5mil in additional expenses arising from this measure should they wish to maintain existing levels of business. Alternatively, they could “lose” as much as 50% of the cards issued but the “subsidy” to potential spenders from the system (on the assumption of the current 21.6% utilisation rate) may be reduced to about RM280mil, the research house said.

http://biz.thestar.com.my/news/story.asp?file=/2009/10/27/business/4981459&sec=business

6.3 sen payout for ASW 2020 - PNB update

Amanah Saham Wawasan 2020 (ASW 2020)

Income distribution of 6.3 sen per unit for the year ending Aug 31, 2009
Equivalent of total payment of RM592.26 million
Fund Size of 11.01 billion (872,322 unit holders)
Income of RM661.28 million up to 17 Aug 2009 (increase of 12.62% from 17 Aug 2008)
1. Profit from the sale of shares contributed RM311.27 million (47.7%)
2. Dividend income from investing companies RM223.69 million ( 33.83%)
3. Other income RM126.32 million (19.10%)

Note:
Unit holders will receive their income statement from the end of October 2009.
Net asset value (NAV) per unit of these funds is fixed at RM1.
Income distribution of 7.0 sen per unit for the year ending Aug 31, 2008.
Income of RM587.18 million up to 17 Aug 2008.

Tips on minimising the incurrance of the credit card interest charges

A credit card can be a convenient method of payment when you do not have cash but using it too much may incur plenty of charges. Here are some tips on how to leave your credit card charges to a minimum:

1. Shop around for the best deal. Look out for waivers on annual and joining fees for the first year.

2. Make cash advances with your credit card as a last resort as the finance charges and fees can be very expensive.

3. Make your payment before your statement's due date to avoid paying finance and late payment charges.

4. Try to settle your outstanding balance in full to avoid finance charges and be aware of the consequences of paying the minimum amount all the time.

5. Limit the number of credit cards based on your needs and payment capability

6. Be alert of changes to the policies and rates.

Process flow on acquisition of your dream house

Most of the people especially those who purchase their first dream house do not understand the whole process flow on propety acquisition. Normally we will set a budget for our dream house, get ready the 10% deposit, either engage the real estate agent or by themself to search for a few preferrable properties for evaluation, and lastly bargain with the vendor for better pricing after we decided on the property to purchase. The worth scenario for general public would be committed to the property purchase without any proper planning. I would like to emphasis here that I am not saying these steps/any decsion made by us are wrong.

To most of us our dream home could be the bigger investment in our entire life. For every investment that we choose it does come with its own associated risk, shouldn't we be more alert, rational and well prepared for the purchase/investment then. If you are thinking that the whole process are very troublesome and time consuming, I would suggest that you engage a reliable loan consultant to coordinate the whole process for you right from the day one.

In the following section, I would like to briefly list down the process flow, hopefully it will enlighten you:

1. Budget for your dream house
Setting the budget for your dream house with the maximum 90% loan amount and with 30 or 40 years loan tenure in mind. It is adviseable to utilise only the maximum of 30 - 35% of your monthly salary or income as your monthly loan repayment amount as the general guideline.

Example:
Your gross monthly salary: RM10,000.00
Calculate the 35% of your salary as loan repayment: 35% x RM10,000.00 = RM3,500.00
Deciding on the actual loan tenure you decide to undertake: 20 years
Calculating for the maximum of 90% of loan by assuming the interest rate fixed at 5%: RM530,000.00
The budget for your dream house: 530,000.00/90%= RM389,000.00.
Caculation for deposit & funding: RM389,000.00 x 15%=RM59,000.00

There is not fixed rule in setting the budget for your dream house. The above example is just a illustration of a more rational and systematic way of setting the budget for your dream house.

2. Conducting CCRIS and CTOS check.
Most of the people either they are not aware of or assumed that they record are clean. It would be a good practice to personally attend to the repective office to check for your credit record to ensure that your loan are not affected by these matter, which could resulted in forfeiting your booking fee/deposit paid to some parties.

3. Search & Identify your dream house.
I think I will skip this part. You will be more expert in identify your dream house.

4. Check for the market value of your dream house.
You normally would not know if the price quoted by the vendor or real estate agent are refecting the actual market value. Thus immediately after you have identify the unit to purchse you should engage a loan consultant to check and establish the market value for you. You should only confirm the deal with the vendor or real estate agent after you have secure the loan.

5. Getting mortgage loan.
Most of the people would like to secure the lowest interest rate for their mortgage loan, however, there are lots of banks offerring many different types of loan package, which they designed in such a way to cater to different people's need and requirement. Thus you should study carefully on each package offerred to you by the banks. If this is troublesome to you or you have no time to go through so many banks or you could not really understand what is the differences in the loan packages may be I would be a great help to you. Alternatively you could engage your own loan consultant to do it as well. Lastly signing on the Letter of offer from bank to confirm on your mortage loan. Bank will send the Letter of Instruction to loan lawyer

6. Confirm the deal with vendor
After you have secure the appropriate loan for your dream house, you could proceed to bargain with the venfor for better pricing and signing the letter of acceptance. You should take note on the term and condition writen on the document before you sign on it. Please check for the cooling off period to ensure it is written 21 days or 14 working day to avoid your 3% booking fee are being forfeited. If you have specific concern or term, you may write down on the letter of acceptance.

7. Engaging the Lawyer
After you have signed the Letter of acceptance, you should engage a S&P lawyer and Loan lawyer to help you to execute all the legal process, who are able to represent and work for your benefit throught out the process. As general guideline it would be good to engage the banker lawyer as both your S&P and Loan lawyer. Under this arrangement, your interest are better protected compare to you using the vendor lawyer. Hope you could realised the facts that banks interest will be always be taken care of no matter what happens.

Under the area of S&P lawyer:
8. S&P agreement stamping
Make sure you check through the draft S&P prepared by your lawyer and discuss what ever term and condition that are doubtly or not agreeable to you with your lawyer. After all the necessary amendment is done, both party will be signing on the S&P. You lawyer will then send the document for stamping, which would normally take 1 day.

9. Memorandum of Transfer sent to Stamp Office for adjudication of Stamp Duty
If the propery you purchse has the individual tile already then the Memorandum of Transfer (Form 14A) will be stamped to show that an adjudication fee of RM10 has been paid, and will then be returned to the purchaser's lawyers to hold, pending adjudication.

10. Property Inspection and Valuation
The Stamp Office will direct the district valuation department to value the property. Documentation shall include: - Memorandum of Transfer (14A) - Copy of the sale-purchase agreement - Copy of title deed - Form PDS5 (Stamping Proforma). The inspection is not mandatory to conclude the valuation and it is at the discretion of the valuation department, but in practice, it takes places in the majority of the cases.

11. Memorandum of Transfer (14A) sent to Stamp Office for stamping
The Stamp Office will issue a notice of assessment based on the valuation department's report. Stamp duty must then be paid to the Stamp Office, based on the Notice of Assessment, within fourteen (14) days from the date of such notice or the period indicated by the Collector of Stamp Duty. Usually the Collector will give thirty (30) days from the date of such notice to pay the stamp duty. This procedure may take one day if the purchaser or purchaser's lawyer goes personally. Otherwise it can take up to 5-7 days for the Memorandum of Transfer to be endorsed and be ready for collection. The documentation shall include: Form 14A (Memorandum of Transfer) Notice of Assessment (obtained in Procedure 3)

12. Registering at the Land Office/Registry
The purchaser's lawyer presents the duly stamped Memorandum of Transfer (Form 14A) for registration at the Land Office/Registry. This must be done within three months from the date of the Memorandum of Transfer (Form 14A) which is usually dated when it is submitted for adjudication. A title search is conducted just prior to presentation to ensure that there are no encumbrances or restraint against dealings which may hinder the registration of the Memorandum of Transfer (Form 14A). The real property gains tax (RPGT) at the rate of 5% on any gains, has been abolished on April 1, 2007. The documentation shall include: - Copies of Quit rent and Assessment receipts - Certified true copies of the Memorandum and Articles of Association, Form 24 (Return on Allotment of Shares), Form 49 (Return Giving Particulars in Register of Directors, Managers and Secretaries and Changes of Particulars) of the Purchaser and Vendor - Certified true copies of the Vendor's and Purchaser's board resolutions giving authority to sell and purchase the property respectively - Search report on the Purchaser as extracted from the Companies Commission of Malaysia - Duly stamped Memorandum of Transfer (Form 14A) - Copy of Notice of Assessment bearing Stamp Office's endorsement that ad valorem stamp duty has been paid (obtained in Procedure 3) - Original of the title document

Under the area of Loan Lawyer:
13. Lodgement of Private Caveat
This process is very much depend on your lawyer and bank requirement.

14. Borrowers sign Loan Agreement at lawyer's office
After the loan lawyer receive the documents from the bank, the lawyer will proceed to execute the legal process. Then they will contact you to sign the loan agreement at their office.

7. Purchaser's lawyer undertaking to let loan lawyer have transfer upon stamping
In this case is would be the same lawyer and no delay in days for document transfer.

8. Confirmation on the outstanding amount and disbursements.
The Vendor & your Solicitors will confirm the differential sum between loan and purchase price. At this point of time you have to prepare payment or fulfill the 10% deposit make payable to your lawyer. Follow by vendor's undertaking & vendor's redemption statement.

9. Advice partial drawdown & full drawdown
You lawyer will issue instructions to your bank for drawdowns. The vendor's bank will get its share first if applicable follow by the vendor being the last to receive what ever balance. Upon the partial drawdown or full drawdown, your lawyer will issue letter to you to start servicing your loan interest only or actual repayment amount.

Note: I am not study law nor related to any solicitator firms. I am presenting the above materials as to my best knowledge. I would appreciate if you could forward me the more appropriate details/update if you find any parts of the writing need to be amended.This definitely will be for the benefits of all readers.

Why we should apply for 30 years housing loan tenure?

A Lot of my people I met are very much concern over the 30 years loan tenure. I can understand their concern over the interest paid for over 30 years, which is substantial.

You may be right if you have the ability or are very confident that your loan will be settled in very short loan tenure. Else I would advise you to opt for 30-year mortgage. What I emphasize here is that we wanted a safety net. By applying for the loan package with flexibility in repayment, you can make extra payment on your mortgage loan every month. This would mean that you are settling your loan in a shorter tenure, and yet still taking a longer loan tenure so that you had a cushion if something happened. This is important to you as banks has all the rights to increase the interest rate if you failed in the repayment.

You may ask yourself by now what the actual different between the two approach? Note that the calculation for repayment amount below does not include other cost charged by banks & house owner insurance (if applicable).

Scenario 1: 30 year mortgage repayment without any sort of acceleration
Loan amount: RM200K
Interest rate: 4%*
Tenure: 30 year
Repayment amount: RM955.00
Total interest paid: RM143,739.38

Scenario 2: 15-year mortgage repayment without any sort of acceleration.
Loan amount: RM200K
Interest rate: 4%*
Tenure: 15 year
Repayment amount: RM 1,479.50
Total interest paid: RM 66,288.00

Clearly, being every thing remained unchanged, a 15-year mortgage is a better option, However in this case it would cost you the additional repayment of RM524.50 every month.

Let’s study Scenario 3, 30 year mortgage repayment with accelerated payments:
Loan amount: RM200K
Interest rate: 4%*
Tenure: 30 year
Repayment amount: RM955.00
Extra repayment: RM545.00
Total interest paid: RM64,945.00
Actual Tenure: 14 years & 9 months

In this case the total interest paid & loan tenure are the same as if you were applied for 15 years mortgage. You save about $78,795.00 and loan tenure shorten by 15 years by making the extra payments.

By now you may be thinking of getting 15 years loan with accelerated repayment. Based on the calculation you are right, however it made more sense for us to take a 30 year loan with the maximised & planned acceleration repayments if the interest rate for both 15 and 30 year are the same or not significant.

I could understand that different person have different risk profile toward their own investments. What choice would you have made and why? At the end of the day it is still your own choice & decision. Only time will tell if you have made the poor decision at that time.

Amanah Saham - April 2009

Prime Minister Datuk Seri Najib Tun Razak announced additional units for two PNB-managed funds including an additional 2.22 billion units for Amanah Saham Malaysia beginning Tuesday, April 21 and two billion units of Amanah Saham Wawasan 2020 from April 27.
The maximum allowed per investor is 20,000 units, he said.

Najib said that PNB had a total of 9.3 million unit holders, with a total investment of RM87bil.
He also noted that PNB’s investment strength in a wide range of strategic sectors opened up and created job opportunities on a large scale.

“PNB can be depended upon to provide job opportunities for our unemployed graduates,” he said, adding that PNB had to date employed 100,000 people in and outside the country.
The Prime Minister also advised the rakyat (people) to invest their savings wisely and avoid getting fooled by get-rich-quick schemes, as that would lead them to financial ruin.

He said it was important that the public be financially savvy and wary of schemes that promised them instant riches.

Sukuk Simpanan Rakyat 2009 (validity: 14 April to 13 May 2009)

Ministry of Finance wishes to announce the issuance of Sukuk Simpanan Rakyat 01/2009 amounting to RM2.5 billion on 14 May 2009. This is the first issue of the two series of 3-year RM2.5 billion sukuk each in 2009. Bank Negara Malaysia has been appointed to issue the sukuk on behalf of the Government.

The sukuk, which will be scripless and based on Shariah principles, is an additional investment instrument for Malaysian citizens who are 21 years and above. The RM2.5 billion sukuk, which has a 3-year tenure, offers a return of 5% per annum and provides the flexibility for early redemption before the maturity date.

Those wishing to subscribe may apply for Sukuk Simpanan Rakyat 01/2009 during the sales period, commencing from 14 April to 13 May 2009. The minimum investment in Sukuk Simpanan Rakyat 01/2009 is RM1,000 with a maximum of RM50,000 per investor. The maximum aggregate holdings per investor for the two series of Sukuk Simpanan Rakyat 2009 is RM50,000. Sukuk Simpanan Rakyat 01/2009 can be subscribed at all commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Agrobank. The allocation of Sukuk Simpanan Rakyat 01/2009 is based on a first-come first-served basis. Successful applicants will be notified by their agent banks. Profit payments will be made on a quarterly basis through the sukuk holders' accounts with their agent banks.

Source: http://www.bnm.gov.my/index.php?ch=226&pg=731&ac=671

"Nothing is more honorable than a grateful heart." Seneca

I read a book "The present: The gift that makes you happy and successful at work and in life" by Spencer Johnson M. D. these few days.

I am grad to have read the book. I am a bit lost last week. I just having the feeling that all my efforts are not getting me anyway or any closer to my goal. I am losing my motivations. I realised that I am overloaded with tasks and yet working/worrying too much on my future. I am not really focusing on the present moment. I would like to thank you Mr. Spencer for the little gift that you give me.

The Present

Three ways to use your present moments

Be in the present

when you want to be happy and succesful

Focus on what is right now.

Use you purpose to respond

To what is important now.

Learn from the past

When you want to make the present better than the past

Look at what happended in the past.

Learn something valuable from it.

Do Things differently in the present.

Plan for the future

When you want to make the future better than the present

See what a wonderful future would look like.

Make plans to help it happen.

Put your plan into action in the present.

Over here I would like to take this opportunity to thank you all my friends, mentors, leaders, bosses, colleague and all others who have help me all this while. Thank you very much for your knowledge & guidance.

How to acquire debts and still stay wealthy and happy? Part II

If you have outstanding in your credit cards, my advise to you is to stop using all your credit cards service and focus on paying off the debts.



For example:

There is a Credit Card Debt of RM1000.00. and with no new debts to be incurred.

Minimum payment: RM50 or 5% on the outstanding amount, whichever is higher.

You may study and use the below advice/suggestions to settle the debts.

Option 1:
1. If you are comfortable/decide to settle your debt with 2 years' repayments for what ever reasons.

2. Then you may just pay the minimum of RM50 monthly before the stipulated due date to get rid of the debts.


3. You will definitely be debt free after 2 years with total interest of RM190.00 paid.



Option 2:

1. If you think that 2 years is too long for you, then you need to plan for the maximum monthly repayment budget which must be higher than 5% to shorten the repayments period.


2. with the repayment of RM100 monthly before the stipulated due date of each month, then you will be debt free after 11 months with total interest paid RM89.00.



Option 3:

1. If you want to shorten the repayment period while still have some extra cash for enjoying life.


2. You may go for credit card balance transfer service offered by finance institutions. However, It is important to get the service that best suit you or provide you the significant saving in the interest paid to enjoy its benefits.


Option 4:
Another very good approach will be get a second part time Job to repay the debts.


Option 5:
Lastly will be the combinations of above options which works best for you.



Note:
Interest charges imposed on you on the outstanding balance which you have not paid your card issuer after the payment due date. These charges are usually calculated on a daily basis. With effect from 1 July 2008, interest charges will be on a tiered basis based on the repayment record of cardholders. The intention is to encourage and instill good financial discipline amongst cardholders. With effect from 31 March 2009, the tiered charges are as follows:

Repayment Track Record & Interest Charges
1. Cardholders who promptly settle their minimum payment due for 12 consecutive months
Up to 13.5% per annum
2. Cardholders who promptly settle their minimum payment due for 10 months or more in a 12-month cycle Up to 16% per annum
3. Others Up to 17.5% per annum

That's all for the time being, Coming soon, please watch out for part III on the term loan management.

How to acquire debts and still stay wealthy and happy? Part I

In the journey to wealth creation, you need debts to build your wealth faster and less costly. However, there are two type of debts both short and long term you are able to acquire. namely the healthy and the unhealthy debt. How do you actually differenciate the two for wealth creation?

For simple explanation, the healthy debts will make you rich while the unhealthy debts you acquired will not make your life better and happier. In order for you to make the right decisions in acquiring healthy debts you need the financial knowledge or IQ to help you.

Manage your Credit Card debts:
A credit card is undeniably a convenient electronic payment tool which allows for greater flexibility and added security, particularly when one is travelling. Credit card company normally grant you the spending limit for each card you applied for 2-3 times more than your monthly income. You will enjoy the benefits as long as you did not default or make minimum payments each month.

1. Before apply check the Term & conditions of each card including joining & annual fees. Choose the card that best suit you. Always keep not more than 2 credit cards with you for better budgetting and control over each month expenses.
2. Then set the spending limit/budget for each credit card.
3. Plan your monthly purchases for household, entertainment, foods, & etcs.
4. Eliminates the unnecessary goods purchase to avoid over spending.
5. Plan your purchase according to the cut off date for the monthly billing cycle to enjoy the more than 20 days interest free period given to you.
6. Check your credit card transactions before signing to avoid unauthorised transactions
6. Ensure you check your card statement and clear the monthly outstanding amount immediately before the due date.
7. Safeguard your credit card.

If you are currently have outstanding credit cards debts & other debts please wait for part II, which are coming soon.

Four ways to stay debt-free

It's important to avoid being highly indebted as it can leave you financially vulnerable in tough times. Here's how to keep your credit card account in the black.

1) Mind your debt
When it comes to problems in managing debt, your mind may be the first area you need to conquer. Mohamed Akwal Sultan, CEO of the Credit Counselling and Debt Management Agency (AKPK), notes that debt is a psychological problem, whereby some people would resort to spending when they are depressed. Dr Goh Chee Leong, vice-president of Help University College, says the basic principle that explains why people spend without thinking on their credit card is attributable to the desire for instant gratification. “We tend to want short-term pleasure even though it means long-term pain,” he says. “We think, if ‘I pay less now, I’ll have more money and it doesn’t hurt me now’. It’s the same principle as to why people procrastinate — have fun now and suffer later,” explains Goh, who lectures in psychology at Help. Another factor that contributes to mindless spending, notes Goh, is the lack of control over desire. “Some lack the will-power to say no to what they feel they want. So, this is a matter of heart versus head.
Is there an antidote for this? “Focus on your limit,” he advises. “Don’t get distracted and compare yourself with other people. If you want to spend the same amount of money that others are spending, you either have to increase your income or decrease your expenditure. Although it is a cliché, it is important to live within your limit.” The good news is that like many things in life, delaying one’s gratification can be attained through practice. “Discipline is a mental muscle. It’s willpower that makes us do something we don’t feel like doing, such as jogging and saving money,” Goh explains.

2) Know your limits
You can’t control debt if you don’t know what you are spending your money on. In Mohamed Akwal’s opinion, budget is one of the most important tools in financial planning. Tabitha Tan Boon Nie, 25, makes it a point to come up with a budget each month. “I only have one fixed income. If I do not budget, then I might be spending more than my income. This is very dangerous!” Each month, she deducts her monthly fixed debts and expenses such as her housing and car loan instalments as well as her parents’ pocket money from her income. “If you’ve just started working, then, in two to three months’ time, you should have a rough idea of how much you need for meals, petrol and toll. If your expenses are more than the balance, then you’ll have to look at how you can reduce them,” she says.
Ruban Thomas, 30, a senior business development executive, took almost three years to clear his credit-card debt. But the experience has taught him how to manage his personal finances better. He now drafts a monthly personal budget planner, putting together a very basic list of monthly income and expenses. “You can just give it your best guess. Stick to the list of things that you can easily identify, such as rent, car payment, insurance and utilities. As time goes by, you can add more details.” Ruban makes it a point to pay himself a minimum of 20% every month when he gets his pay cheque. Next, he sets aside money for “unavoidable payments” such as car and housing loans, PTPTN (National Higher Education Fund Corp) loan and utility bills. Nelson Ng, a banker, does something similar. “The housing and car loans are my main priorities. I spend what’s left of my income after deducting 20% to 30% for savings,” he says.

3) Keep a tight rein on the ‘extras’
Budgeting helps to identify your regular expenditures, but it doesn’t help if you blow the budget regularly on big items. Ng points out: “You must always remember to not overspend and indulge in impulse purchases, especially during sales.” Credit card issuers tend to give a credit limit that is two to three times higher than one’s earning capacity. This can give you the illusion that you are able to afford a lifestyle that is two or three times beyond your means. Hence, make sure you have the money to pay for each purchase. You could have a little ‘savings accounts’ set aside for treats like travel or large purchases like a handphone. After purchasing the items, use the money to pay the charges in full.

4) Limit temptation
When Ng managed to settle his outstanding debts after around two years, he decided to cancel four of his credit cards to avoid the temptation of overspending. Currently, he only owns two credit cards — one for petrol transactions and the other for daily use. “There is always the temptation to overspend when we have too many cards in our wallet,” he opines. “With a minimal payment of 5%, the monthly payments seem to be small, but the bigger debt is always waiting for us at the bottom of the statement. Clear your credit card debts as fast as possible because every month, there will always be additional bills being credited and your debts will accumulate very fast, with the high interest of 18% per annum.”
Similarly, Tan owns two credit cards and does not intend to apply for more. “The interest rate is way higher than the interest rate your saving account is giving,” she points out. “Furthermore, my credit limits are already over my monthly income. I really wouldn’t want to get into such debt that will take me years to clear.”

This is an excerpt from an article which appeared in Issue 90 (February 2009) of Personal Money, the personal finance magazine published by The Edge Communications Sdn Bhd.

Where to conduct the free CCRIS and CTOS check before commit yourself to any property purchase?

About CCRIS
Majority of financial institutions in Malaysia will update their client's loan information to the Credit Bureau at Bank Negara Malaysia (BNM) monthly. Upon request CCRIS will processes the credit data received from the financial institutions and summarises the information into credit reports for the financial institutions or yourself.

CCRIS report will shows the total principal, interest and charges outstanding on each of your loans (housing loans, personal loans, credit cards, car hire purchase and overdrafts). It will also reveal the number of month(s) your repayments are in arrears on a monthly basis for one year. The CCRIS report also shows other loans you have applied for as well as brief information on summonses or bankruptcy petitions if any. The Financial institutions who assess your credit rating will look for the repayment behaviour, total debt commitment & etc.

You can obtain your own free credit report by visiting BNM at:
Jabatan Komunikasi Korporat
Ground Floor, D Block, Jalan Dato' Onn, Kuala Lumpur.
Tel: 1-300-88-5465 (Overseas: 603-2174-1717)
Fax: 603-2174-1515
E-mail: bnmtelelink@bnm.gov.my
For more information on CCRIS you may go to http://creditbureau.bnm.gov.my/

About CTOS
CTOS Sdn. Bhd. will collate information usually from courts or national newspapers on bankruptcy and summons of individuals and companies. The Bankruptcy reports usually provide information on the Court filing number, the location, the date of the Notice or order, the name of the individual, the identification card number and, in the case of petitions, the date of the court hearing. Summons information usually include details of individuals and companies, the Court filing number, the location of the filing, the date of the Notice or order, the amount of the summons (if available) and the date of the court hearing.

You can obtain your free CTOS report from:
CTOS Sdn Bhd (209649-U)
Unit A-8-4, 8th Floor, Megan Avenue 1,
No 189, Jalan Tun Razak, 50400 Kuala Lumpur
Tel: 603-2770 8833
Fax: 603-2770 8834
For more information on CTOS please go to: http://www.ctos.com.my/

Common mistakes - when purchasing your dream house

Investing in property is a great approach in personal wealth creation, however, the common mistakes done by lots of people are they committed to the property purchase even before they have clarified the below:

1. Conducting the Central Credit Reference Information System (CCRIS) and Credit Tip Off Services (CTOS) check to avoid unnecessory hassle that you might encountered in your property purchase.

2. Whether are you qualify for the loan, the loan package with terms and conditions together with the interest rate you are willing to paid for the purchase, the amount of loan you required to complete the purchase, and the estimated loan tenure needed.

3. The obligation to pay your monthly repayments promptly to avoid the bank impose any unfavorable terms and conditions or increase the interest rate.

4. The Legal and other fees that might incurred beside the 10% deposit for the property purchase.