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Housing loan checklist: Non-standard documents you need to know

Mannju on September 29, 2022

Applying for a housing loan is a lengthier process for a self-employed or freelancer in Malaysia. However, it doesn’t necessarily mean it’s difficult, especially when you have all the non-standard documents ready!

When it comes to personal finance, most freelancers in Malaysia might begrudge their civil servant friends and families. We all know how easy it is for them to get a loan. For those of us without regular employment, filling our taxes, getting insurance, and applying for a home loan is a much lengthier process. However, being a lengthier process doesn’t necessarily mean it’s difficult. If you are well-prepared and have all the non-standard documents ready, you are well on your way to owning your first home.

Can I Get A Home Loan Without Property Documents

It is impossible to get a housing loan without proof of income as your income stability and repayment capability isn’t guaranteed. If you are a civil servant, regular-employed, or salaried person, preparing the documents required for a home loan application is fairly easy. However, someone who is self-employed may not have the same basic documents.

Here are a few examples of jobs that fall under the self-employed category:

  • Hawkers, daily wage workers, online traders
  • Gig economy workers (Grab, Foodpanda, Lalamove)
  • Personal tutors
  • Event organisers
  • Freelancers (photographers, designers, writers, fitness trainers, etc.)
  • Authors
  • Musicians
  • Small entrepreneurs

When you fall under the category above, you can still get a home loan. However, the self-employed documents for a home loan are slightly different.

What documents are required for home loan approval

Below are the standard documents a person needs to submit to ensure a smooth housing loan application process:

  • Payslips
    One of the most important documents in proving a person’s home loan.
  • Employees’ Provident Fund (EPF) statements
    A great way to prove the level and stability of your income.
  • Bank statements
    Proof that you are indeed being paid your salary.
  • Copy of MyKad
    Required for almost any housing loan application as a Malaysian citizen.

As you might see, a self-employed person might have problems providing the first two documents on the list above. This is why a housing loan for the self-employed in Malaysia requires some non-standard documents for approval.

Housing Loan Documents Checklist Malaysia: 7 Non-Standard Documents Required For Home Loan Application

Unlike salaried people, self-employed do not have a regular payslip. Banks will review your financial stability before approving your housing loan application. As a self-employed person, banks may perceive your income as ‘unpredictable’ when it to comes to committing to the monthly repayments. However, here are 7 non-standard documents you can provide to prove your income and financial health:

1. Business registration

This is an important document to have, even if your business is small or you are a one-person freelancer. Having a registered business boosts your client’s confidence in dealing with you, and it appears more professional too. Furthermore, the date of registration will be considered very important to the bank. It will justify the sustainability of the business.

2. Business profile

This is important so that banks can identify the nature of your business. Even a simple website or official Facebook, Instagram, or LinkedIn page will be sufficient.

3. Financial records of past years’ income, tax return statement, balance sheet

You have a higher chance of getting your housing loan application approved if you can provide an organised financial record of previous years’ income, tax return, profit and loss statement, and balance sheet.

Here’s a simple checklist of what you can do:

  • Make sure that your business is registered with the Companies Commission Of Malaysia/ Suruhanjaya Syarikat Malaysia (SSM)
  • Keep all statements, documents, and licenses related to your business
  • Label all folders according to the latest dates or assessment year. This will make it easier for you to provide your proof of income when asked by the bank.
4. Income tax statements

A lot of the self-employed or freelancers in Malaysia may not declare their earnings to the Inland Revenue Board of Malaysia (IRBM) or LHDN. However, having the last three years of your income tax statements on record goes a long way in helping you get your home loan approved.

If you are required to pay income tax, it normally means your annual earning exceeds RM34,000 (after EPF deduction) or you earn income from a business (through gains or business profits). This is the sort of income stability that banks prefer to see.

5. Bank statements

For regular-employed applicants, bank statements serve as proof that they are indeed being paid their salary. For those who are self-employed or are freelancers in Malaysia, bank statements show that actual business income and profit are generated.

6. Savings

From the banks’ perspective, savings are the best way to justify and show your steady stream of income, which leads to your accumulated savings. If you aren’t able to show your savings record, it’ll be hard to justify the stability of your business.

7. Credit score report

Banks or financial institutions in Malaysia have their method of evaluating your credit score. As credit score indicates a consumer’s credit risk, banks will refer to two popular credit reports, CCRIS and CTOS to assist their evaluation. A good credit score will make you a more attractive candidate for a loan. With a good credit score, you can even get better home loan interest rates and even quicker loan approval.

Other Tricks That Can Help You Get A Home Loan 

The following can also help you get housing loan approval:

1. Get a guarantor

A credible guarantor must be someone who has a strong financial background. It can be anyone; your family members, relatives, and even close friends. This person will be evaluated based on his or her income stability, employment background, as well as a credit score to minimise your risks and liabilities as a self-employed person.

2. Apply for a home loan with banks that lend to self-employed borrowers

Banks are very ‘picky’ when approving an application. Before applying for a housing loan, take your time to research banks that approve loans for self-employed individuals and find out the interest rate on house loans for each bank. Here are some of the banks that offer home financing for self-employed applicants:

  • CIMB Property Financing
  • Bank Rakyat Home Financing-I
  • HSBC Ideal Home Plan
3. Housing Credit Guarantee Scheme (HCGC)

During the tabling of Budget 2022, the Government has allocated RM2 billion under the Housing Credit Guarantee Scheme (HCGC). This was to help those without proof of fixed income. The Government is cognisant of the challenges facing gig workers, small business owners, and farmers in getting a housing loan.

In reality, many of these individuals have the capacity of repaying their loans but without documents proving of fixed income, the process of applying for a home loan is difficult. This initiative will not only benefit potential house buyers but also accelerate the growth of the local property market. So far, BSN MyHome (Program Perumahan Rakyat) 2021 is one of the housing schemes.

Link : https://www.iproperty.com.my/guides/housing-loan-checklist-non-standard-documents-you-need-to-know-73844 

Terms of Reference of Sustainability Committee

Mannju on September 20, 2022

1. Objective 

The principal objective of the Sustainability Committee (“Committee”) is to assist the Board of Directors of LBS Bina Group Berhad (“LBS” or “Company”) in fulfilling its oversight responsibilities in relation to the sustainability strategy and initiatives covering economic, environmental, social and governance (ESSG) aspect as well as embedding sustainability practices into the businesses of the Company and its subsidiaries (“Group”).

2. Members

(a) The Sustainability Committee shall be appointed by the Board and shall comprise at least 3 members.

(b) The members of the Committee shall elect a Chairman from among their number. 

(c) In the event of any vacancy in the Committee resulting in the number of members being reduced to below 3, the Board shall, within one (1) month fill the vacancy. 

(d) The Board shall have the discretion as it deems fit to rescind and/or revoke the appointment of any person(s) in the Committee.

3. Meeting

(a) The quorum for meeting of the Committee shall be three (3). 

(b) Meetings shall be held as and when appropriate, but shall not less than once in a calendar year. 

(c) Meetings of the Committee shall be summoned by the Secretary of the Committee at the request of any member thereof. Notice of each meeting confirming the venue, time and date together with an agenda of items to be discussed, shall be forwarded to each member of the Committee not less than three (3) working days prior to the date of the meeting. 

(d) A resolution in writing signed by a majority of the Committee Members for the time being shall be as valid and effectual as if it had been passed at a Meeting of the Committee duly called and constituted. Any such resolution may consist of several documents in like form each signed by one (1) or more Committee Members. Any such document, may be accepted as sufficiently signed by a Committee Member if transmitted to Company by telex, telegram, cable, facsimile or other electrical or digital written message purporting to include a signature of a Committee Member.

(e) The Company Secretary shall be the Secretary of the Committee. 

(f) The Committee is authorised to call any employee to attend at a meeting of the Committee as and when required.

4. Reporting Procedures

(a) The Secretary shall circulate the minutes of meetings of the Committee to all members of the Committee. Minutes of each meeting shall be duly entered in the book provided therefor. 

(b) The Chairman shall report the proceedings of each meeting to the Board. 

5. Authority

(a) The Committee is authorized by the Board to undertake the specific duties and responsibilities stated below. The Committee is also authorized to obtain external legal or other independent professional advice, as it considers necessary. 

(b) The Committee may sub-delegate any of its powers and authority as it thinks fit, including, without limitation the establishment of sub-committees to analyse particular issues or themes and to report back to the Committee.

 

6. Duties and Responsibilities

The Committee has the overall responsibility for overseeing the requirements for the Group to conduct its business in a responsible manner in relation to its impact to the environment, economic, social and governance aspects:- 

(a) To advise the Board and recommending the sustainability strategies and related policies for adoption and the implementation of such strategies and policies; 

(b) To monitor the implementation of processes, standards, measures and actions designed in achieving the organisation’s sustainability milestones and goals; 

(c) Monitoring the adequacy of resource allocated in achieving compliance with strategies, targets, policies and roadmaps pertaining to sustainability;

(d) Monitoring the overall management of stakeholder engagement and its outcomes, including ensuring mechanisms for sustainability-related grievances are in place;

(e) Assisting the Board members to keep abreast with and understand the sustainability issues relevant to the Group and its business, including but not limited to climate-related risks and opportunities; and

(f) Assessing, reviewing and recommending to the Board for approval the Company’s annual sustainability report/statement.

7. Review

This Terms of Reference has been endorsed by the Board of Directors and is made available for reference on Company’s corporate website and internal computer networking system. It shall be reviewed by the Board of Directors and update whenever necessary to ensure its effective implementation. 

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Internal Audit Charter

Mannju on September 20, 2022

1. Mission

To add value to the overall organisational performance and independently ascertain whether the on-going processes for controlling operations throughout LBS Bina Group Berhad (“LBGB” or “Company”) and its subsidiaries (collectively referred to “Group”) are adequately designed and functioning in an effective manner.

2. Objective

To provide independent and objective assessment and assurance that the Group’s risk management, internal controls and governance processes are operating effectively and efficiently.

3. Role and Scope of Activities

The role of Internal Audit is to assist the Board of Director, Audit Committee and Management to carry out their oversight responsibilities effectively in establishing cost-effective controls, assessing risks, recommending measures to mitigate those risks and assuring proper controls and governance processes. It also assists in the creation of shareholders’ confidence in the Company’s system of internal control. 

The Internal Audit Function’s scope of activities is to ascertain, through selective testing, that the processes for controlling, as they have been designed and represented by Management, are adequate and functioning in an effective manner to ensure: 
• resources are adequately protected; 
• significant financial, managerial and operating information are accurate and reliable; and 
• employees’ actions are in compliance with the LBGB’s policies, standards, procedures, and applicable laws and regulations. 

4. Accountability

The Internal Audit Function, in the discharge of its duties, shall be accountable to the Audit Committee to:

• provide quarterly an assessment of the adequacy and effectiveness of the Group’s processes for controlling its activities;
• report significant issues related to the processes for controlling the activities of the Group and provide information concerning such issues through resolution; and
• periodically provide information on the status and results of the Internal Audit Plan.

5. Responsibility

The Internal Audit Function has responsibility to: 

• develop an Annual Internal Audit Plan, based on significant exposures to loss or failure, and submit that plan to the Audit Committee for approval; 
• consider the scope of work of External Auditors and regulatory examiners, as appropriate, for the purpose of providing optimal audit coverage to the Group; 
• implement the Internal Audit Plan as approved by the Audit Committee; 
• issue periodic reports to the Audit Committee summarising results of audit activities; 
• maintain professional Internal Auditors with sufficient knowledge, skills and experience to meet the requirements of this Charter; and 
• evaluate and assess controls coincident with the introduction of major changes to systems.

 

6. Authority

The Internal Auditors are authorised to:
• have unrestricted access to all of the Group’s functions, records, property, and personnel;
• have full and free access to the Audit Committee; and
• allocate resources, set frequencies, select subjects, determine scope of work,
and apply the techniques required to accomplish audit objectives.

The Internal Auditors are not authorised to:
• perform any operational duties for Group; and
• initiate or approve accounting transactions external to the Internal Audit Department.

7. Independence

To provide for the independence of the Internal Auditing Function, the Internal Audit will report to the Audit Committee.

8. Standards of Audit Practice

The Internal Audit Function shall meet the Standards for the Professional Practice of Internal Auditing, as adopted by the Institute of Internal Auditors.

9. Review of Internal Audit Charter

This Charter has been endorsed by the Audit Committee and is made available for reference on Company’s corporate website and internal computer networking system. It shall be reviewed by the Audit Committee and update whenever necessary to ensure its effective implementation. Any subsequent amendments to the Charter should only be approved by the Audit Committee. 

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External Auditors Policy

Mannju on September 20, 2022

1. Introduction

The Audit Committee of LBS BINA GROUP Berhad (“the Company”) is responsible for reviewing, assessing and monitoring the performance, suitability and independence of external auditors. The objective of this External Auditors Policy (“the Policy”) is to outline the guidelines and procedures for the Committee to assess and monitor the external auditors. 

2. Scope

This Policy applies to the external auditors of LBS Group. 

3. Definitions

“ Board” refers to the Board of Directors of LBS at any one time. 

“Committee” refers to the Audit Committee of LBS at any one time.

“Company” refers to LBS Bina Group Berhad (Company No.: 518482-H). “LBS Group” refers LBS Bina Group Berhad and its subsidiaries.

“Policy” refers to this External Auditors Policy including any amendments made or to be made from time to time. 

4. Objectives

The objective of this Policy is to outline the guidelines and procedures for the Committee to assess and
monitor the external auditors. 

5. Selection & Appointment

Pursuant to Section 273 of the Companies Act 2016, the office of auditors shall cease at the conclusion of each annual general meeting. Accordingly, the members shall appoint or re-appoint the external auditors of the Company, and the external auditors so appointed shall, hold office until the conclusion of the next annual general meeting of the Company. Should the Committee determine a need for a change of external auditors, the Committee will follow the following procedures for selection and appointment of new external auditors:-

a) the Committee to identify the audit firms who meet the criteria for appointment and to request for
their proposals of engagement for consideration;

b) the Committee will assess the proposals received and shortlist the suitable audit firms; 

c) the Committee will meet and/or interview the shortlisted candidates; 

d) the Committee may delegate or seek the assistance of the Chief Financial Officer/Finance Director to
perform items (a) to (c) above;

e) the Committee will recommend the appropriate audit firm to the Board for appointment as external
auditors; and

f) the Board will endorse, after due consideration, the recommendation and seek shareholders’ approval for the appointment of the new external auditors and/or resignation/removal of the existing external auditors at the general meeting.  

 

6. Selection Criteria

The Committee will evaluate potential audit firm on a number of criteria including, but not limited to: 

a) Independency, objectivity and professional scepticism 

b) Quality of engagement team

 c) Reputation 

d) Internal governance process 

e) Human Resources and qualification 

f) Proven and demonstrated experience in audit of listed companies 

g) Cost 

h) Clientele (size, spread, etc.) 

7. Independence

The external auditor’s independence is a key factor in ensuring that the financial statements of the
Company and its subsidiaries are true and fair, and meet high standards of financial integrity.
The Committee monitors the independence of the external auditor, including any relationship with the
Group or any other person or entity that may impair or compromise, or appear to impair or compromise,
the external auditor’s independence.
Independence may be impaired or compromised by the provision of services of a non-audit nature to
LBS Group, depending on the materiality of those services and the fees charged for them. Therefore,
the external auditors are precluded from providing any services that may impair their independence or
conflict with their role as external auditors.
The Committee shall obtain a written assurance from the external auditors confirming that they are, and
have been, independent throughout the conduct of the audit engagement in accordance with the terms
of all relevant professional and regulatory requirements.

 

8. Non-Audit Services

The external auditor’s independence is a key factor in ensuring that the financial statements of the Company and its subsidiaries are true and fair, and meet high standards of financial integrity.The external auditors can be engaged to perform non-audit services that are not, and are not perceived to be, in conflict with the role of the external auditors. This excludes audit related work in compliance with statutory requirements.

The prohibition of non-audit services is based on three (3) basic principles as follows:-
a) external auditors cannot function in the role of Management;
b) external auditors cannot audit their own work; and
c) external auditors cannot serve in an advocacy role of LBS Group.

The external auditors shall observe and comply with the By-Laws of the Malaysian Institute of Accountants in relation to the provision of non-audit services, which include the followings:-
i) accounting and book keeping services;
ii) valuation services;
iii) taxation services;
iv) internal audit services;
v) information technology system services;
vi) litigation support services;
vii) recruitment services; and
viii) corporate finance services.

All engagements of the external auditors to provide non-audit services are subject to the approval/endorsement of the Committee. 

Management shall obtain confirmation from the external auditors that the independence of the external auditors will not be impaired by the provision of non-audit services.

9. Rotation of Audit Partner

The audit partner responsible for the external audit of LBS Group is subject to rotation at least every five (5) financial years, followed by a two year minimum time out period during which they may not take part in the audit of the Group. 

10. Annual Reporting

The external auditors shall issue an annual audit plan for review and discussion with the Committee. The external auditors shall also provide a management letter to the Committee upon completion of the annual audit.

 

11. Annual Assessment 

The Committee shall carry out annual assessment on the performance, suitability and independence
of the external auditors based on the following four (4) key areas:- 

i) quality of service; 

ii) sufficiency of resources; 

iii) communication and interaction; and 

iv) independence, objectivity and professional scepticism.

The Committee may also request the Chief Financial Officer/Finance Director to perform the annual assessment of the external auditors. 

12. Review of Policy

This Policy has been approved by the Committee and is made available for reference on Company’s corporate website and internal computer networking. It shall be reviewed by the Committee and updated whenever necessary to ensure its effective implementation. 

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LBS Chairman Appointed as an Adjunct Professor of Leadership by UNITAR International University

Mannju on September 1, 2022

Tan Sri Lim Hock San, the Executive Chairman of LBS Bina Group Berhad has been appointed as an Adjunct Professor of Leadership by UNITAR International University in recognition of his exemplary leadership in spearheading LBS Bina Group Berhad and transforming the group into a household brand name and as one of the leading players in the property development industry.

The bestowment of Adjunct Professorship of Leadership to Tan Sri Lim Hock San also recognises his unwavering contribution in society, ranging from education, chamber of commerce to clan-based associations. 

Interview for Official Launch of LBS Fabulous Extraaaa

Mannju on September 1, 2022

Tan Sri Lim Hock San had an interview with the media from Astro AEC , 8TV and China Press during the Official Launch of LBS Fabulous Extraaaa on 26th August 2022. Tan Sri Lim shared about the LBS campaign and the outlook for the property industry. 

Vox Pop : “Are You a True Malaysian?” (Merdeka 2022)

Mannju on September 1, 2022

In conjunction with the 65th National Day under the theme of “Keluarga Malaysia, Teguh Bersama” 

We welcome Nina on this VoxPop Merdeka edition! 

In this episode we decided to do something different, we will ask the public some questions  to see “Are You A True Malaysian”?

Happy Merdeka Day!🇲🇾

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