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<\/figure>\n\n\n\n1. Your Credit Score Matters!<\/strong><\/p>\n\n\n\n First things first, you need to make sure that you’ll\nbe able to pay back the mortgage consistently until the loan tenure is\nfinished. No matter what mortgage you get or which bank\/lender you go to, they\nneed to make sure that you’ll be able to pay them back. To do this, they’ll\nusually refer to your credit score as a clear indicator. A credit score or\nrating is an indicator that shows lenders how good you are at managing and\npaying back credit of any kind. So, if you’re looking to get a mortgage, the\nfirst thing you should do is check your credit score. Take steps to improve\nyour credit score, and that’ll increase the chances of getting your mortgage\napproved! <\/p>\n\n\n\n 2. Mortgages Come in Different Forms<\/strong><\/p>\n\n\n\n Mortgages in Malaysia come in a few different forms.\nSome have fixed interest rates, some with variable interest rates, and then\nthere are Islamic mortgages as well. \nLet’s take a quick look at the differences.<\/p>\n\n\n\n A fixed mortgage is quite straightforward: it’s a loan\nthat has a fixed interest rate throughout the tenure of the loan. This means\nthat your monthly repayments will go towards reducing your principal amount\n(the amount you owe for the mortgage) and the interest amount which is fixed. <\/p>\n\n\n\n A variable mortgage is slightly different. While your\nmonthly repayments still go towards the principal, the interest rate, on the\nother hand, isn’t fixed. Two things can affect the interest that you pay on a\nmortgage with a variable interest rate. Firstly what the bank can charge you\nwhile staying competitive, and second, your credit rating (as mentioned\nearlier). Borrowers that are a higher risk when it comes to credit could be\ncharged a higher interest rate. <\/p>\n\n\n\n An Islamic mortgage is one that follows the rules of Islamic financing. Basically, this means that the bank will actually buy the property on your behalf and then sells it back to you at a profit, instead of charging you interest. Instead of charging you interest, the agreement with the bank will include a clearly-defined profit rate which you’ll slowly pay back every month.<\/p>\n\n\n\n 3. Get A Loan That You Can Afford<\/strong><\/p>\n\n\n\n Whatever type of mortgage you pick, make sure that you\nget one that you can actually afford. When calculating what they can afford to\npay each month, people tend to make the mistake of only thinking about the\nmortgage’s monthly repayment amount. Sometimes it’s easy to forget that there\nare many other costs to pay for when buying a house.<\/p>\n\n\n\n Think about it: when you buy a house, you won’t just\nbe paying for the mortgage every month. You’ll also be paying for utility\nbills, maintenance and repairs, taxes, home insurance, and more each and every\nmonth. So, when it comes to figuring out how much you can afford to pay each month\nfor your mortgage, take all these other costs into consideration.<\/p>\n\n\n\n Rule of Thumb: As a general rule of thumb for your\npersonal finances, never use more than a third (1\/3) of your net income on\nanything to do with the house you’re buying. Your net income is the money you\nhave left after all the necessary deductions like taxes, EPF, and SOCSO. Your\nhouse costs will include your mortgage payments and things like utility bills,\ntaxes, and repair or maintenance costs. Of course, always set aside some money\nfor unexpected emergencies!<\/p>\n\n\n\n![\"\"](\"\/\/ctoscredit.com.my\/creditfinder\/wp-content\/uploads\/2019\/10\/iStockphoto-1048402108.jpg\")
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