Planning to buy your first house? There’s really no better time to do so! Especially with the HOC extended till the end of 2021, as well as BNM maintaining its OPR at an all-time low of 1.75%. You also happen to have a healthy DSR? Great! Hold up, you look confused, did all these abbreviations confuse you? Believe it or not, we were once in that spot.

The process of buying your first home can be overwhelming because it is not merely a cash and carry process. Besides having an in-depth knowledge of the potential property, being well-versed with banking and property abbreviations is equally as important.

In this article, we won’t be going too in-depth on every abbreviation so that you can take your time to digest all this info. Here is our pick of property abbreviations that you need to know to help ease your way on your journey to securing your first home:

1. HOC

Introduced back in 2019, HOC is the abbreviation for Home Ownership Campaign, a government initiative intended to aid homebuyers in search to purchase their dream property and simultaneously catalyze sales of unsold properties in the housing market of Malaysia. The HOC comprises significant stamp duty exemptions on Instrument of Transfer, Instrument on Loan Agreement, and much more. Be quick though because this campaign is only here to stay till the end of 2021.

 

2. MPC, BNM, and OPR

Hear us out on why we place them together. The Overnight Policy Rate (OPR) is an overnight interest rate set by the Monetary Policy Committee (MPC) of Malaysia’s central bank, Bank Negara Malaysia (BNM) intended for monetary policy direction. Remember how we mentioned that at the time of speaking the OPR is at its all-time low and that’s a good thing? The lower the OPR is set, the cheaper it is to take a loan and thus, better capabilities of accessing capital, be it for personal or commercial reasons, and vice versa.

 

3. DSR

A Debt Service Ratio (DSR) is a method used by banks to gauge your ability to afford the loan that you just applied for. When purchasing a house, DSR is crucial as banks use this formula to determine the amount that you can afford to pay for your monthly property loan instalments. A healthy DSR is in the 30-40% range. In short, the lower your DSR, the merrier but should your DSR be on the high side, don’t give up just yet. You can always seek advice from your bank on the highest DSR that they accept because every bank’s DSR limits may differ.

 

4. CTOS

Credit Tip-Off Services or better known as CTOS in short is a report that is issued by CTOS Data Systems Sdn Bhd, which is one of our country’s leading private Credit Reporting Agency (CRA) which archives an individual or organization’s complete credit record. Contrary to a Central Credit Reference Information System (CCRIS) report which only tracks credit history for the past one year, CTOS reports are stored indefinitely. A good CTOS score will boost your credit application approval and ultimately, bring you one step closer to your dream home!

 

5. DOA

No no, it’s not prayer in Malay, but instead stands for Deed of Assignment. DOA is a legal document that is used to transfer the ownership of a property/a debt from one party to another. It confirms the transfer of ownership from the ‘Assignor’ (the individual who currently owns the property) to the ‘Assignee’ (the individual who is acquiring the property).

 

6. MOT

The Memorandum of Transfer (MOT) is a legal document that follows the SPA and confirms the actual transfer of the ownership of the property. It confirms the actual transfer of ownership of a property. Wait, MOT sounds very similar to DOA, yes? Signing the MOT signing signifies that the Land Title will be transferred from the developer to you. For high-rise units, once it is divided, the MOT needs to be filed at the Land Office to transfer the ownership of the unit from the developer to the buyer. The signing of the MOT is the legal confirmation of transfer of ownership and generally forms the final step of the transfer process.

 

7. SPA

The Sale and Purchase Agreement (SPA) is an extremely important document that defines the terms of a house sale. A legally binding contract between buyer and seller that confirms mutually agreed conditions such as the method of payment, defect liability period, conditions of the property, fixtures, and fittings, and other relevant clauses.

 

8. DLP

Do you know how our new phones and electronics come with warranty? Defect Liability Period or DLP in short is sort of the same thing but for properties instead. It is a specific period where your developer is responsible to fix any defects identified in your new home. Spotted misaligned or hollow tiles, uneven paint, or crack ceilings? It’s part of the SOP for developers to thoroughly inspect the property before vacant possession (VP), while you get all excited for your new house, knock and skim through every corner of the house! Under the Housing Development Act in Malaysia, the DLP period is 24 months for individual titles and 36 months for strata titles, beginning from the day you take the keys for your new house, so start checking away!

 

9. CCC

CCC stands for the Certificate of Completion and Compliance (CCC) which is also by far one of the most important documents in the journey of securing your dream home. This black and white is issued when your newly built house is signed off as completed and safe for habitation, as evaluated and submitted by an appointed architect known as Principal Submitting Person (PSP).

 

10. BLR

To make it easy to digest, Base Lending Rates (short for BLR) is the base interest rate that banks internally turn to prior to finalizing the rate to charge for your home loan. To describe more precisely, BLR is the rate determined by each bank according to the cost needed to borrow the money to be lent to borrowers, which is determined by the aforementioned OPR.

 

Well done! You’ve made it till the very end. Of course, there’s so much more to learn in the world of property and every abbreviation actually deserves its very own article. But no worries, we are confident that you are now much savvier than when you started. Did you like what you read? Let us know in the comments down below how we can help you be better equipped in buying your new house! 

#Let’sBeSavvy

Editor’s note: This article was written in conjunction with Breast Cancer Awareness Month. We know that we’re towards the end of the month but we also believe that this piece will be a timeless advice. We hope you enjoy the read and do share them with your loved ones! 

What if the most impactful method of curing breast cancer was out of the hospital? We are not doctors but what we know for sure is that the ultimate solution to breast cancer starts not from the hospital but from our society. Try this, initiate a conversation with a colleague and have an open discussion on breast cancer. The initial reaction is more often than not anything between the lines of awkward or shyness, yes? Breast cancer is the most common cancer in the world and also in Malaysia, but why is it not widely discussed and what can we do about it?

To start things off on a positive note, despite it being the most common cancer, breast cancer is highly treatable and survivable in the early stages (Stage 0 and 1). Of course, that has to be accompanied by early detection measures namely, mammography and clinical breast examination. With the prevalence of the coronavirus, many people would have been financially impacted or concerned about heading to the hospital for check-ups. Thus, while we still very much recommend seeking professional assistance, self-examination is most definitely a viable option on its own. Upon detection, it will ensure the most ideal opportunity for an effective treatment.

However, what is most concerning is that breast cancer is usually asymptomatic at the beginning, where it starts off being a small and painless lump, which may then lead to delayed diagnosis. On following stages, evident symptoms may begin to appear, such as change in the shape and/or size of the breast, a lump in the breast or underarm area, pain and swollen in the breast area, and more severe symptoms would be discharge from the nipple (could be blood), which does not include breast milk. While most breast lumps are not cancerous, it is advised for women to visit a doctor for an examination should they notice a lump on the breast.

Many women also shy away from thinking about breast cancer as the thought of it alone is enough to frighten them. There is also the prevalence of taboo which discourages public discussion on the said topic. To add on, there are even misconceptions that there is currently no effective treatment for breast cancer. All of these are bad practices that will cause one to miss out and delay the best timing for treatment. Overthinking without making any form of resounding action, is in this case a very costly decision. We may lack the knowledge in this aspect but we must never for a moment lack the courage. At this very moment, there is nothing better that one can do than to steel oneself and reach out to someone you can trust and/or experience and seek immediate medical advice.

Equal attention needs to be given to post-breast cancer patients too. This is because, for those who have recovered, more than two-thirds of respondents felt a drop in the confidence of their bodies after a breast cancer diagnosis as well as treatment. Many felt that it had decreased their self-esteem where they experienced a loss of identity as compared to before breast cancer. We must acknowledge the impact that breast cancer diagnosis can bring upon one’s psychological well-being. From not being able to accept the post-cancer version of themselves or the inability to break the news to their partner or children, all of these can ultimately lead to depression and anxiety, which can, in turn, decrease the survival rate of a patient or even lead to recurrence of the cancer. Therefore, psychological treatment is just as crucial when it comes to the effective treatment of breast cancer.

 

As much as we are house builders, we also believe that a house can only be a home when we have our loved ones with us. To readers battling with breast cancer, like all other forms of cancer, breast cancer is a serious health diagnosis and is deeply personal. While some can be open and expressive about their condition, the rest may choose to keep it a hush-hush, and that’s okay so long that he/she has reached out for help! For readers with loved ones battling cancer, it is not easy on your end too and your unconditional support means the world to them and a strong support system is the foundation for a successful road to recovery. Whichever the approach may be, one must embrace the change in reality but know for a fact that they still have the ability to transform their cancer journey. Breast cancer should be a topic that is widely discussed, be it in October or all year round. Most importantly, don’t delay and keep breast cancer at bay!

#LetsBeSafe

LBS Bina and Nanyang decided to continue the trend of email interviews. Among the topics discussed by Tan Sri Lim Hock San was the national wish list of 2022 for the property sector, particularly on his hopes for the government to extend the Home Ownership Campaign (HOC) as this campaign has shown positive impacts on first-time homebuyers. This news also includes other renowned property developers and both print and online are available:

https://www.enanyang.my/node/435019