/// Contributor
Michael Yeoh
The Mortgage Expert
With over 15 years of experience in the
mortgage and investment industry and
working with prominent companies
such as Standard Chartered Bank,
Hong Leong Bank, HSBC and Hwang
DBS Unit Trust, Michael has helped
thousands of loan borrowers by
providing comprehensive mortgage
advisory and solutions.
Michael regularly conducts mortgage
courses and has produced many
graduates. He is also a regular
columnist and also has being featured
in New Straits Times Press, The Star,
Property Guru and also Property
Hunter magazine. He speaks regularly
in Property Exhibitions, Seminars and
also for developers.
You can get in touch with him at
Website: www.michaelyeoh.com.my
4
Sure Ways to
Get Your Loan REJECTED
O
ne day after giving a talk for a property developer project launch, one gentlemen approach me
and asked me this “Michael, how do I get my loan rejected from the Banks?” I have all kinds of
mortgage questions being asked during or after my seminar but this top the list. Interesting, that is
why I am dedicating this article to the gentlemen.
Well, let’s look at 4 sure ways that can cost you your loan approval.
Overconfidence
I was once approached by a couple after my seminar. They look very worried and pull me to one side for a
private discussion. Guess what happen. They bought a RM3.5 million commercial property paid 10% and
immediately sign Sales Purchase Agreement(SPA). Their biggest mistake is not securing the loan from the
bank before paying RM350,000 down payment. After that, their nightmare started. They approached 5
banks 3 rejected 1 approved at 50% another at 60%. They need a margin of 85%.
Lesson to be learned: No matter how confidence you are, sometimes that are a lot of unforeseen
circumstances that can affect your loan approval. Better make sure your loan is approved and you have
sighted the Banks Letter of Offer before proceeding to sign SPA.
Giving Fake Documents
While the author makes reasonable
efforts to present information which
he believes to be reliable, the author
makes no representation that the
information or opinions containe d in
this article is accurate and complete.
Readers are advised to seek specific
professional advice before acting on
the views.
70
www.PropertyHunter.com.my
As the name suggest, this should NOT have been done in the first place. I have seen borrowers who are
worried cannot get their loan approves by the banks have resorted doing such thing. I also had seen
syndicates who are expert in this field. They can even make the EPF statement looks so real. I am not
suggesting you do this to get your loan approval. Banks have ways to verify your documents. Like for EPF
contributions by a loan borrower the banks will be able to do a cross check with EPF department.
During my time working in the bank, I have seen many altered financial documents submitted by loan
borrowers to me. Sometimes, it is not difficult to spot these.