Procedure for Purchase of Property
If you are interested in the property, make an offer to the seller. You will need to instruct a solicitor to handle the legal details. Once your solicitor has completed the necessary legal documents pertaining to the purchase of the property, you will then sign the contract which is called the Sales and Purchase Agreement (SPA).

SPA is a signed contract between the buyer and the seller. You pay the deposit at this point through your solicitor, and you and the seller become legally bound.

Valuation of Property
We arrange this report to help us decide whether a property is suitable for the mortgage you need. We will ask a professional valuer to visit the property to be mortgaged and produce a report. This report gives more detailed information on the current condition of a property.

Withdrawal Scheme from Employees Provident Fund (EPF)
House buyers who are EPF contributors have the option of withdrawing funds from their EPF Account No.2. This EPF withdrawal scheme allows members to withdraw for purchase or construction of a house. This withdrawal eligibility applies to:

• Individual purchase or
• Joint purchase with spouse, family members or other individuals.

This is most preferred option to raise money for your down payment. Generally, the amount you can withdraw is :

• The difference between the price of the house and the housing loan, plus additional 10% of the price of the house, or
• The balance available in your EPF Account No.2, whichever is the lower of the two.

For more information, log on to www.kwsp.gov.my

Should I commit myself in paying the down payment before applying for a loan?
It all depends on whether you foresee any problems in getting a housing loan especially in meeting the eligibility criteria set by banks.

Many Banks provide 'Approval in Principle' or 'Pre-approved home loan'. Based on the informations provided by you, your banker should be able to determine the amount of housing loan they are willing to grant you.

By applying for an 'Approval in Principle' home loan, you will know :

• How much you can borrow
• What your monthly payments will be
• A realistic price range for your dream house
• Which locality or developer is acceptable to your banker

Housing Loan Application Process