Hi Stephanie,
You may try one of these maybe it may work for you:
1) Buy from a developer that offers 10% rebate to be set-off against the first 10% Downpayment, free S&P legal fees and stamp duty. Also, look for a bank that offer 90% MOF with zero loan legal fee and stamp duty.
Say the property selling price is RM 200K. You need to pay 10% on signing S & P so its RM 20K downpayment. But the dev. gives you 10% rebate's that RM 20K deduction and you need not pay a single cent for the downpayment although technically you need to pay a booking fee of about maybe RM3k to 5K. Even the booking fee will be paid back to you once though other way when the you are able to secure 90% financing.
Note: Rebate is not discount. With rebate the S & P shows the original listed price. With discount, the S & P price is the discounted price and will not work in your favour.
In some cases, if the buyer were able to get 95% loan, he/she will get a cash out of 5% of the selling price. Though its not common, I bought my first property with 95% MOF.
2) You get a bargain property at 10 to 20% below market price from a motivated seller (not through auction!).
If the bank accept the higher market value (after professional evaluation)as the sum for your MOF calculation, you automatically entitled for zero downpayment purchase and even cash out.
Nowadays many banks offer their MOF calculation based on their own market value or the S & P price whichever lower even though some banks are more flexible to accept the higher market value.
3)Get a motivated seller with 10 to 20% below market.
If you are not confident to go through the bank's channel or think it's too much of a hassle, write the S & P using the market value. Draft a supplementary agreement that the seller allows you to deduct the differential SUM from the downpayment. In this case you don't need pay a single cent, technically.
I think this may work also with property at market value but with a motivated seller just that the S & P price is marked up marginally by about 10-15% and assuming you can get 90% MOF. The bank may complain but what a big deal with 10-15%. There are many banks and valuers who may match your price S & P price.
I may be wrong, but having said the aboves, I have some words of cautions:
1) With developer giving 10% discount, you have to evaluate the developer and project. Very often, a good project and a good developer may not offer so much discount. Is there a risk of non completion? Are the units not selling and it may effect future market price? Is it in a poor location? Etc
2) With motivated seller, you have to check the property and the seller. Something wrong with the property or there is a dark secret behind it like the 'body in the fridge case in Mont Kiara'. Or the seller up to no good by disappearing with your deposit. Is it poor location?
3) With zero downpayment, you may stretch yourself too thin. Can you manage the repayment?
In the end, it is still back to your own judgment
