Auction property loan
Win the lot. Fund the balance. First charge after title.
From 12% p.a. · Typically 50–70% LTV · No income proof required — an auction property loan structured around hammer dates, deposits, and completion when banks cannot match the calendar.
Who it’s for
When the hammer date is fixed and the bank is not.
An auction property loan funds successful bids on bank auctions, LACA, and forced-sale lots: deposit now, balance on a short fuse. Rahman Capital screens whether a first-charge facility can sit on the acquired title — often with LTV toward the cautious end of 50–70% because forced-sale values, arrears, and title quirks matter.
Charge registration typically follows purchase and title transfer. Soft approval before bidding is how serious buyers avoid stranded deposits. This is hard-money style timing — not a 30-year housing loan packaging exercise.
Indicative terms
- From 12% p.a. (indicative)
- Typically 50–70% LTV — auction loans often sized conservatively vs open-market value
- First charge on the acquired property
- Aligned to auction / balance / completion milestones
- Exit: hold & refinance to bank, renovate then refinance, or on-sell
- No income documents required — lot, valuation, and first charge drive the loan
Fits when
- You can share lot particulars and auction date early
- Deposit and equity plan are funded or clearly lined up
- Title can support a first charge after transfer
- Bid ceiling respects realistic post-purchase valuation
Doesn’t fit when
- Bidding with zero equity and no deposit plan
- Known caveats / occupation that block a clean charge
- You need a decision after the auction with no prior screen
- Expecting 100% of the hammer as the loan
Illustrative example
Reserve RM 800k; you bid successfully at RM 850k. At 55% LTV of a RM 900k post-purchase valuation view → indicative auction property loan ~RM 495k toward the balance — not 100% of the hammer. Deposit and shortfall remain your equity. Figures are illustrative only.
Loan path
How an auction property loan typically sequences.
Lot, reserve, your ceiling, deposit source, and exit.
LTV band and timeline if you win within budget.
You pay the auction deposit from equity.
Transfer, first-charge registration, then balance drawdown per LO.
Bank refinance or sale within the agreed tenor.
Readiness
What to have ready
- Auction notice / lot particulars and date
- Intended bid ceiling and cash for deposit
- Any known arrears, caveats, or occupation issues
- Buyer entity (personal vs company) and NRIC / SSM
- Exit after purchase (hold, renovate, refinance to bank)