Mortgage/Home Loan Restructuring Facility for Contract Employee

[diegster]

Hi, I’m 36M. I have a property valued by Maybank at RM500k and the outstanding amount with them is RM262k.

I plan to consolidate all my loans i.e. property, car, personal loan under one property loan.

The only constraint to restructure with Maybank is I’m a contract employee. Is there any other bank/financial institution that can cater to my situation? Thank you.

 

[akadascribe]

@diegster Is it really a bad thing to be in a contract job?

 

[liorex]

@akadascribe He didn't say it was a bad thing.
He said it was a constraint to restructure with the bank, suggesting that the bank does not view contract employees favourably for loan eligibility.
A difference between permanent and contract is that for permanent, it is assumed the employment is continuous while for contract, it means the person likely has to look for a new job after the contract period, increased risk for the bank/financial institution.

 

[akadascribe]

@liorex I personally asked about it because I have a job offer lined up and it’s 3 years contract compared to my current job which is permanent.

And in these 3 years I would definitely need to take at least housing loan and maybe a car loan. Was worried about the disadvantages of contract job

 

[grampster]

@akadascribe Yes, the bank is always worried about your income stability when they calculate the risk of granting your a loan. So a permanent role will always be better when you're applying to get a loan.

 

[akadascribe]

@grampster I see so there might be a case where my loan interest rate would be higher

 

[grampster]

@akadascribe That isn't so big of an issue, its more of the banks wants you to prove that you can service the loan until the end. Having an FD in their bank helps with your success rate.

 

[aaron2025]

@diegster Get another bank to refinance your mortgage if Maybank is not favourable to contract workers
There are banks who are okay with contract workers over 6 months

Pay off old mortgage
Balance cash in hand can pay off all other outstanding loans

 

[diegster]

@aaron2025 thanks for the insight. can you suggest me any bank/FI that can refinance property for contract employees?