Step 1: Assess Your Financial Health

• Check your credit score via CCRIS (Bank Negara) and CTOS for the past 12 months
• Calculate your Debt Service Ratio (DSR) – should ideally be below 70%.
• Ensure your income is stable and documented.
• Know how much loan you can realistically afford.

Step 2: Choose Your Property & Make a Booking
Now that your finances are in order

• Decide between:
• Primary Market: Direct from developer
• Secondary Market (Subsale): From a property owner or agent
• Pay a booking fee (2–3%) to reserve your chosen unit.
• Sign the Letter of Offer or Offer to Purchase.
• You typically have 14 working days or up to 21 days to confirm sign the Sale and Purchase Agreement (SPA).
• A land search will be conducted to verify property status.

Step 3: Apply for Your Mortgage Loan
Submit your loan application to one or more banks. Required documents:
For Salaried Individuals:

• NRIC copy
• Latest 3 months’ payslips
• EPF statement
• 3–6 months bank statements
• S&P Agreement (if signed)
• Employment letter (optional)
  For Self-Employed:
• Business registration (SSM)
• 6 months bank statements
• Form B & tax receipts
• Profit & Loss or audited financial reports

Step 4: Bank Processing & Property Valuation

• The bank assesses your income, DSR, property type, and loan amount.
• The bank will get a verbal valuation for the property (subsale) or refer to pre-approved developer projects (primary)
• Approval typically takes 5–14 working days.

Step 5: Receive and Sign the Letter of Offer

• Once approved, the bank issues a Letter of Offer.
• Carefully review terms:
  • Interest rate (fixed/floating)
  • Tenure
  • Monthly installment
  • Lock-in period (early settlement penalty)Sign and return the letter to confirm your loan acceptance.

Step 6: Legal Documentation & Further Payments

• Sign the Sale and Purchase Agreement (SPA)
• Appoint a lawyer (bank panel lawyers are common).
• Sign key documents:
  • Loan Agreement
  • Deed of Assignment / Charge Document (depending on property type)
• Pay remaining down payment (usually 7%, after booking fee to make up 10% total).
• Settle the legal fees, stamp duties, and other charges such as:
  • Legal fees (For SPA and loan agreement)
  • Stamp duty (For SPA, loan agreement, Memorandum Of Transfer (MOT)
  • Valuation fee (bank valuation of property)
  • MRTA (Mortgage Reducing Term Assurance)/ MLTA

Step 7: Loan Disbursement

• Once all documents are signed:
  • The bank will disburse loan funds in stages to the seller or developer.
• Timeline:
  • Full loan disbursement must be completed within 3 months + 1-month grace.
    -3 months use to settle the remaining amount
  • If delayed beyond 3 months, an 8-10% will be charged.
  • If payment is not completed within 4 months, the whole dealing will be called off.

Step 8: Collect Your Keys

• After full disbursement, you’ll receive the keys to your new property!