You want to buy a house and purchase your Biggest Most Prized Possession (BMPP) but don’t know where to start or what to expect during the entire process? Fear not, for Myra has got you covered with our handy dandy e-book that’s filled with home buying tips! So don’t roll into a ball and sob just yet! Let’s take a look at what the e-book entails.

The e-book brings you on a 4-step journey towards becoming a homeowner which is super duper simple. All you’ll have to do is:

1. Find Your Dream Home
2. Land Your Loan
3. Sign Important Stuff
4. Get Home

Do you have what it takes to take four steps? OF COURSE YOU DO. So let’s get to it.

1. Find Your Dream Home

The very first step you need to take is, of course, to look for a house that suits your present + future needs, lifestyle, and everything! When you’re looking for a home, there are a number of things that you need to truly consider before making your decision. Stop thinking with your head, and start thinking with Myra’s SCALP!

• Size: The size will help determine how much space you’ll need! Think about…
  • Number of bedrooms you need based on how many people will be living there;
  • Number of  bathrooms - are you comfortable sharing it with the people you are going to live with, or does everyone need separate toilets;
  • Kitchen Space - do you need a big kitchen, how often do you use your kitchen, what do you use your kitchen for? ;
  • Living Spaces - how big does your dining room need to be for family meals; living room, lounge areas for family members to come together); 
  • Outdoor space -  do you need a garden for kids to run around or a balcony in your condo for gardening;
• Community: What is the type of community you’ll want to live in?
• Amenities: You’ll definitely need amenities around your home. So make sure the ones you need are there!
• Location: How near (or far) do you want to be from your family and office? This needs some serious thinking!
• Price: Your biggest key consideration. You’ll need a home that suits your needs and your bank account!

Ask yourself these questions and weigh your needs carefully so that you’ll be able to find your perfect match! But of course, every great love story comes with a price and it’s time we get on to that part.

How much should I pay monthly?

After finding the perfect match for you, you would need to calculate how much your monthly instalment should be and whether or not the cost would be a sustainable amount for you!

To do that, we use this awesome little guide called Myra’s Golden Rule - which states that your monthly instalment should remain below 40% of your nett income! Click the link above for more deets and how it’s calculated! But here's a little visual for you :

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2. Land Your Loan

Now that we’re at Step 2, what should you do? The next step is to figure out how you can get a loan from the bank! It may seem like a complicated process but trust me, it doesn’t have to be with my secret in breaking things down. So let me answer all of your biggest q’s in this step!

What is DSR?

Let’s talk about your DSR. Firstly, DSR stands for Debt Service Ratio, and to be eligible for a loan, your DSR needs to be lower than 70%. The lower your % is, the higher the chances of your loan getting approved are! Try out Myra’s Super Calculator to do a quick DSR check!

How can I improve my credit score?

Next would be the credit score on your credit report! There are a number of ways for you to improve your credit score, and if your credit history is not looking its sexiest, don’t worry. You can still get that loan! But it would take 12 months for your credit profile to be good enough for a loan application. For more tips on how to improve your credit score, check it out here!

What options are there to finance my home?

When it comes to choosing for a loan, there are quite a few options available, depending on your place of employment as well. There are bank loans, government loans, staff loans, Islamic loans, and even Second Charge available with different repayment periods! Check out the most popular bank loans here!

Do I need home insurance?

Well, let's just say that extra protection is always best..  

There are 2 types of home insurance available :

• Mortgage Reducing Term Assurance (MRTA)
• Mortgage Level Term Assurance (MLTA)

How different are they in terms of $$? Refer to this blogpost!

Now that Step 2 is done, let’s continue to your next adventure where you’ll need to…

3. Sign Important Stuff

You’ll have to sign sign sign papers just like a celeb at a fansign, but do you know what exactly it is you are putting your signature on? Don’t just sign away without knowing what it’s for. Find out what the most frequently asked questions are for these legal documents!

What is an SPA?

If you’re wondering what’s an SPA, then you’ve come to the right place! It’s a Sales and Purchase Agreement– a contract between you and the developer, but once you sign, then no more negotiations are allowed from both ends! We further explain the contents of an SPA in the e-book or for a quickie read, check out the blogpost here.

Are there any hidden costs to worry about?

 Well, yes! As a buyer, you will also need to prepare for costs such as Stamp Duty, and Legal Fees!

Under Stamp Duty, you’d need pay for three things :

• Memorandum of Transfer (MOT)
• Memorandum of Charge (MOC)
• Loan Stamp Duty

As for the legal fees, here are the costs you’d need to cover:

• Sales and Purchase Agreement (SPA)
• Loan Legal Fees

These figures will differ in terms of amount as it’s based on the price of your house! If you already know your home’s price, pop over to Myra’s Super Calculator to find out how much your hidden costs are going to be!

4. Get Home

Hooray! You’re at the fourth and FINAL step which means you’re much much more closer to getting your home. But with this final adventure, comes a few other things you should be prepared about. Read on, friend. It’s time to prepare your bank account (again). 

What is Progressive Payment?

This is the process in which your loan amount is broken down, calculated, and released to the developer depending on the different stages of completion for the construction of your home. To find out how the calculations are done, take a look at the e-book down below or for a quickie read, the blogpost here!

What is Progressive Interest?

This is the amount that you pay to the bank, which is released in stages to the developer. Since it is by interest only before your loan is released, then you’ll have the chance to reduce the original amount loaned and the interest that’s charged on top of it earlier!

What’s Vacant Possession

This is the process where you’ll be able to find out when your home will be delivered and ready to be lived in. But before that, it will undergo the Certificate of Completion and Compliance (CCC) to ensure that the house is safe enough to be occupied.

Buyer’s Portion ; what are they?

These are the payments that you as a homebuyer would be responsible for, and it’s split into two different categories :

Differential sum :

• The amount difference between your loan approval and property price

Miscellaneous charges :

• Electrical deposit & stamp duty
• Water deposit & stamp duty
• Water connection & processing fees
• Maintenance
• Etc.

The amount for these misc charges will be given to you when your home is going to be handed over. So keep an eye out for it!

How long is my Defect Liability Period?

This is the warranty of your home! The duration of your DLP is up to 24 months but is only applicable if you’ve purchased the home before its CCC- aka- when it is still under construction.

 With this, you can claim for any defect rectification, and the cost will be completely covered by the developer! BUT, this period becomes void if your home undergoes any major renovations before claiming for the rectifications. 

What do I need to prepare for my new home?

• Inspect your house
• Set up the house
• Clean the house
• Start packing
• Inform the change of your new address

That’s the gist of our complete 4-step journey! There are more things covered in our e-book, so if you want to read anything about interior design, or read about the information above in  more detail, just download our e-book right here and keep it for easy reference!