Hey guys.

I was looking at ING's Home Loan package. There's a package being offered: 4.99% interest rate, ZEC. However there's a statement which says:



Using the mortagage calculator, it shows that I would have to pay RM1689 monthly. Does this include the policy that I have to purchase with ING? If not, what is the calculation like? Thanks in advance.

The fire insurance is paid separately on yearly basis. If you have insurance coverage with ING, then no need MLTA BUT your total coverage should be equivalent to the loan amount. Eg, if u loan 200k, your insurance coverage must be at least 200k as well.
Which means on top of the monthly payment for the home loan, you have to service your insurance coverage as well.

This post has been edited by vreis: May 28 2009, 12:15 PM

Thanks vreis for the explanation. Any thoughts on fixed interest loans like these for home loans?

I personally dont think it's good time to take fixed rate now. As i dont think the BLR will rise alot in coming few years time.
So better to take BLR-2% = 3.55% compare to 4.99%. For example RM300k loan,you may saved more then RM20k just in 5 years. Alot of interest you can save here.
Few of my clients also looking for me to refinancing their property that with Fixed rate 4.XX%. Their loan only served for 1 to 2 years only. 3.XX% with 4.XX%,it a very big different.

So let say after 5 years BLR rising, then only refinance and consider for fixed rate for peace of mind.

My 2 cent.

Thank you for the insight onnying. I'll definitely sit down and start re-calculating again. Any opinion on Standard Charted's KLIBOR Home Loan package?
I'm trying to understand what that's all about now.

i agree on what onnying88 said...
nowadays many banks offer low rates...
maybe u should have go survey some other banks

some banks, MLTA/MRTA is optional...

when you take up insurance policy.they will finance the sum assured into the loan...for example your loan rm200k and your mrta premium is rm10k(based on your age and health) then your loan amount will be rm210k...i agree with onying also n i think its better to take mlta...more secured....