2) doesnt prepayment reduce principal and recalculate remaining loan then interest base on remaining year?
I think no. Bank want to earn the interest charged on you first. Try out this mortgage calculator http://www.mlcalc.com/ and you will find out the major repayment goes to pay the interest first.

uh oh

some bank ask me for strata title - what is that?
they said strata = snp draft

elighten me please

I've been looking through this forum and here to share my experience.
I am one of the buyer and signed my s&p this monday (28-12-2009).

The loan applications that i applied are Pbb, Uob and SC.
Pbb: they need 1 week to process, offering BLR - 1.8%. MRTA + Legal fees can be included.
Uob: Basically, they need 3 days to approved, offering BLR - 1.85%. MRTA + legal fees can be included.
SC: i agreed, they proceed really fast, offering BLR - 1.85%. MRTA and legal fees are not included.

Same to all, i placed a booking on 12-12-2009, suppose my due date to signed was 26-12-2009 and developer rushed me to sign on 24-12-2009.
I understand that there are some ppl r risking in signing of the s&p before loan is approved. I would advise not to do this. (I'm first time buyer too).

On 24th, my loan was approved according to my UOB SA, but yet to print me the offer letter. SC has already printed the offer and awaiting me to sign.

On that day, my panel lawyer is good enuf. she asked me weather am i getting my offer letter before signed? i said nope. Then she ADVISED me to speak with developer to see if i can extend my due date since im not getting an offer letter yet ( she knows is risky too! ).

Then i went to speak with the sales manager (i guess) and tell her the situation where 14 days included with weekend n PH is something very unfair to us, as there are 2 public holidays sit in btw for the past 2 weeks. All managers and staffs are on leave. We are unable to get our approval. Then the sales manager and SA said if my loan has approved, i can proceed to sign the s&p already even without offer letter yet. BUT I INSIST [COLOR=red]to have offer letter ( as a protection for our buyers). So there she goes, she allowed me to extend on 28-12-2009 n noted my unit and name on a book. Again, the panel lawyer reminded me to get the black and white from her. But she said no nid, just look for her on 28-12-2009 is enuf. (luckily, my panel lawyer helps me to put a note to my s&p instead!)

One thing i need to remind here, please get your offer letter 1st before you sign up for you s&p. In my case, since i cannot get my UOB offer letter, i go for SC offer letter. SC SA fax me the offer letter.

When i looked through the offer letter, it stated that i'm getting 85% approval only. I was surprised to see this and i called the SC SA. Unfortunately, she DIDNT AWARE of this 85% loan approval. after she checked and get back to say that i'm only eligible for 85% loan approval.
It's something need to be extra caution. if i signed the offer letter of SC just now, i have to bear another 5% as my downpayment again. This is something really not good. since i can extend my due date, i took uob rather. The SA past me the offer letter, explained on the all t n c.

At the end of my story, i signed my s&p on 28-12-2009, with floor plan (including parking plan and parking lot units), dead of mutual, special promotion offer letter (stated clearly developer will bear the 3 years interest and 7.5% is given to us in 18months) provided.

The loan agreement is prepared by the solicitors. You can pay cash / cheque of rm300 to the solicitors. The developer will only bear the construction interest but not your MRTA and legal fees interest. Please don't messed up this. When signing any doc, please ensure your block unit + name + IC are correct. After i signed my s&p, my booking payment + 10% downpayment amount has credited from my account already.

Hope all these things will help to clear all your doubt.

This applies if you only make payment according to the monthly amount where most amount deducts interest first.

Let's say i receive my bonus of rm10K n make PREPAYMENT into my total loan amount. Does the 10K fully reduces the principal amount or still deduct like the above?

sifu, please confirm on this.

So far, I heard of prepayment from few banks.

1) If you made payment using counter or cash machine, consider advance payment and will be use if you forgot or no money to pay on following months. Some bank need you to tell them at the counter to clear principle amount. If you didn't inform them, consider advance payment.

2) You have an current account and whatever money debited through counter or cash machine will deduct your loan principal. You have to made payment until the end of the tenure although the account amount over the loan amount except you request to end the loan earlier. Of course, all payment money are belong to you and the bank will not charge you any interest when the account amount more than your loan amount. (This type have flexi, semi-flexi and non-flexi)

Calculation of interest will be the same for all types. Advance payment or not, the interest will be calculated as below:

Loan amount - advance payment * interest rate.

This post has been edited by king4891: Dec 30 2009, 01:06 PM

what do you mean by 1 week for pbb and 3 work day for uob processing time
where do you get such rate?

because i went to pbbank immediately after booking
then after one week, today wednesday also they called me to final process

if bank produce offer letter and loan agreement
does that mean if you agree with any bank offer, can I proceed immediately / open account
or still need to wait for another 1 week?

thanks

Which bank ask you on that? Panel bank should not ask this kind of documents from buyer especially for new project.

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Added on December 30, 2009, 2:14 pmFor your information, offer letter is just an agreement between you and bank who approve on your loan. After that, bank will acquire their lawyer (or developer lawyer if zero cost or your own lawyer) for Loan agreement.

For S&P, the agreement is between you and the developer which advisable to sign after you got the offer letter from bank. (You can sign S&P before loan approved but risk to lost 1% of your purchase price as per developer agreement).

After sign offer letter, you still can cancel the loan but not after sign loan agreement.

Hope it's help.

This post has been edited by king4891: Dec 30 2009, 02:21 PM

Please find my replies in red.

ocbc is sooooo slow!!!!!

Yes, very very slow & they dont even wanna get back to u..whether approved or fail they dont even wanna entertain...very bad customer service..

i called the so called Team Leader (by the name of A***) and he informed me that he already submitted my loan but the truth is, he did not!!!!! cos i check with another banker fren in ocbc, she check for me that he didnt even submit my document.....after that, i called this guy and tell him that i want to cancel my loan and he pretended to feel "guilty" by telling me..."actually i already submitted but now waiting for manager approval"....your foot!!!! the application is not complete, how to submit!!!!

same for UOB.

UOB and OCBC SA holding my case for 5 workings days then only submit to their superior.

Forget about OCBC... my previous loan was with them and the penalty gonna kill me 5k administration fees and 3% on loan amount.

Thus, they told me if introduce the buyer to use back OCBC will have 50% discount on the 3% penalty. But subject to management approval and will never know when is it.

Now this property I applied for OCBC but only approve 80% whereas OUB, SC, CIMB and PBB approved 90%.

I will not get any loan from this bank forever.

Ya, OCBC salesman have very bad service. Didn't answer to call. Will not come to your convenient place to meet. Very slow respond.

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Added on December 30, 2009, 3:40 pmMy UOB take 1 week to approve. Tomorrow will get offer letter. PM me if you want to change Credit Officer.

Ya... I think you got the contact from the printed flyer at the showroom. I call them before, always delay and give excuse very busy. I say if you are busy then I pass to other people. He replied better ask other CO to do....

But after that he ask somebody to call me but I already pass to current one to process. She is good.

This post has been edited by king4891: Dec 30 2009, 03:40 PM

[quote=king4891,Dec 30 2009, 03:36 PM]
Forget about OCBC... my previous loan was with them and the penalty gonna kill me 5k administration fees and 3% on loan amount.


wasn't that 5k administration fees and 3% on loan amount already stated in the offer letter when u signed it?

[quote=estherlo,Dec 30 2009, 03:55 PM]
[quote=king4891,Dec 30 2009, 03:36 PM]
Forget about OCBC... my previous loan was with them and the penalty gonna kill me 5k administration fees and 3% on loan amount.
wasn't that 5k administration fees and 3% on loan amount already stated in the offer letter when u signed it?

[/quote]

Yes, stated. But most of the bank only have 3% so that I didn't realise it. When I told other bank CO, they laugh on me. Sigh......

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Added on December 30, 2009, 4:05 pm[quote=estherlo,Dec 30 2009, 03:55 PM]
[quote=king4891,Dec 30 2009, 03:36 PM]
Forget about OCBC... my previous loan was with them and the penalty gonna kill me 5k administration fees and 3% on loan amount.
wasn't that 5k administration fees and 3% on loan amount already stated in the offer letter when u signed it?

[/quote]

You applied for all 5 panel banks?

This post has been edited by king4891: Dec 30 2009, 04:05 PM

Just applied 3

I am only interested in 2 banks which is PBB & UOB...

PBB MRTA is much more expensive if compared to UOB.

Any 1 bought MRTA as well?

so, as at now....which bank is better? someone pls enlighten me

My choice would be PBB or UOB only..The rest all OUT!!!!

Consider MLTA.... Ask your insurance agent.

MLTA - sum assured contant since day1
- pay small sum monthly or annually until you wish to terminate the policy
- can get back all your premiums after certain yrs > 15 yrs
- can transfer to other property or when you refinance

MRTA - sum assured drecreasing annually
- pay one large sum upfront, 1 time only
- cannot transfer to other property

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Added on December 30, 2009, 4:34 pmI still not yet get all the approved offer letter from OUB, PBB, SC and CIMB. Cannot tell in details.

So far I agree to gstrapinuse, OUB and PBB is the best.

This post has been edited by king4891: Dec 30 2009, 04:34 PM