If you are currently scrolling through social media or reading property forums, you might have stumbled across some interesting, albeit entirely false, rumours.
There are whispers online claiming that we at FAR Capital offer, facilitate, or recommend the use of “compressed loans” for property investment.
Let us make one thing absolutely clear: We do not. Our competitors want you to believe that we do, but we dont.
At FAR Capital, we believe in building real, sustainable wealth. We are issuing this public statement to address these baseless rumours directly, explain how the banking system actually works, and protect you from those who peddle financial fiction.
First, let us talk about why the very idea of “compressing” loans to cheat the system simply does not make sense.
Many people are led to believe that a compressed loan is a magic trick that allows someone with a low income to suddenly buy five properties at once by hiding applications from the banks.
Here is the cold, hard reality: Banks will not approve your applications if your Loan Eligibility (LE) does not match.
Financial institutions have robust, interconnected systems in place to calculate your debt service ratio and your overall capacity to repay. If you do not have the genuine financial backing to support the loans, attempting to submit multiple applications simultaneously will simply result in multiple rejections. It is a massive waste of time and it ruins your credit profile. It simply does not make sense.
And some people and some groups practice compressed loans to overcome 70% LTV. We dont need to do this when we are already buying at 30% to 65% discounts, which makes owning a property on 70% requires no capital.
The truth is, the only people who can successfully secure multiple loans at once are people who already have a high Loan Eligibility.
Let us look at a practical example:
When this investor submits multiple loan applications for those three RM500,000 properties, they all get approved. Why? Because their total debt (RM1.5 million) is still well within their genuine RM2 million LE.
People on the outside see this and call it a “compressed loan,” assuming some sort of loophole was exploited. In reality, it is simply a smart investor fully utilising their genuine, hard-earned loan eligibility. There is no cheating involved.
Building an empire requires a strong foundation, not a house of cards.
FAR Capital strictly does not encourage, nor do we tolerate, the use of fake payslips, forged documents, or any other unethical tactics to artificially jack up a person’s Loan Eligibility.
We have seen what happens when people try to shortcut their way to wealth using fraudulent means. It always ends in disaster. If someone tells you it is possible to cheat the bank by doctoring documents, please walk away.
As we always say: stop asking broke people how to do better financially. The same logic applies here, stop listening to internet trolls for facts about property investment.
If someone tells you that you can magically multiply your buying power through illegal loan compression, they simply do not know what they are talking about. Stop listening to them on any subject related to money.
If you are ready to build genuine wealth, increase your income legally, and navigate the property landscape with proven processes, reach out to us at FAR Capital.
Let us help you build an investment portfolio that secures your financial freedom, the right way.
