Dear all,

To resolve the doubt of first disbursement = full disbursement:

For under construstion property, the way that bank releases money to the developer is according to the progress of construction stated in the 3rd schedule in s&p. First disbursement starts when the day that the bank pay the first payment to the developer. IF u r financing 90% loan, after the 10% downpayment, when the bank releases the following 10% to the developer, it starts the first disbursement date. Thus, lock in period starts from full disbursement is a disadvantage to investor who intends to sell the property after completion. coz by the time bank fully disburse to the developer could be in 3 yrs later, by then ur total lock in period will be 8 yrs. Unless u willing to pay the penalty charged.

Completed property has no progressive payment like the under con property does, so the first disbursement will be the full amount of ur loan financed. Thus, first disbursement also equal to full disbursement.

Regarding loan offers, guess below are the things that u may need to put into consideration:

- interest rate, of course (however every bank almost offers the same rate. a minor 0.05% makes no different if u r taking flexible loan or the bank loan allows u to do prepayment to offset loan principal)
- lock in period especially for investor. (thus personally i think pbb is not good for investor unless u foresee the property wont sell in 8 yrs time)
- service. u never know when it comes to disbursement. some banks tend to delay in payment. If the bank late in releasing money to the developers, not dev but u r the one who bear the late payment charges. (personally im willing to pay slightly higher interest for a better service)
- Hidden cost. fyi, pbb has a lot of charges like rm 75 land search and blah blah blah.
- forget about interest rate change to BLR plus 2% or 3% for the default payment unless u really think that u hv such potential in defaulting ur installment. THis is standard clause la.. every bank applies.
- Loan tenure in fact, the longer the better coz eventually u may do prepayment to save interest while lower down ur monthly commitment. It helps in ur next loan approval.
- withdrawal flexibility and charges unless u really utilize the facility (eg. pump in ur salary to reduce interest) especially for those business owner, otherwise dun worry abt the withdrawal charges la...
- daily rest/month rest it makes a lot of different

Abt MRTA/MLTA.. whether its mrta or mlta or mtta or mdta or wutever a... it's all life insurance but describe in different terms only. All insured the same things, death and total permanent disability. Wut we concern is on the surrender value and the beneficiary. If u were to take mrta from the bank, of course bank will be the beneficiary coz ur property is their security. If any happen to u, insurance institute helps u to pay for the loan. Bank wont care abt u but the money. and its not transferrable if u refinance the property coz by tat time the property is no longer their colletaral security, who cares if u need to purchase a new policy with higher premium. For those who can affort, mlta really better than mrta.

Talking abt the HLB issue. There is no surprise if the law firm claims that hong leong is one of their panel coz this means that particular law firm can prepare loan agreement for hong leong bank. But whether or not Hong leong acts as the end financial (panel banks) for this project, that is another story. Hong leong can be the law firm panel but not necessary to be 1120 PA's panel bank. If it's not under the end financial listing, u may not enjoy the promotion!


Thanks

This post has been edited by xiaopygu: Jan 7 2010, 06:53 PM

[SIZE=7]my dear, first disbursement = Full disbursement is for those completed property oh!!!! U may check with the banker see if I'm telling u correctly.. Hoho

for under con property, even if for Pbb, max yr wil only be 3+ 5yrs cz their llockinperiod stated starts fr date of full drawdown. unless the property delay in coNstruction then it's different story!

Dear 106127,

U may refer to fiecks84's thread as he pretty understand well. Hoho....

Btw, not all bankers r trying to provide the incorrect info in order to close the sales.. At least, won't be the term of first drawdown = full drawdown for an under con property... Tat is a basic knowledge for a banker to know! ( those inexperience bankers excluded) Hoho....

No offence but jz trying to make u clear.. ^^

oh ya, for ur info, standard chartered bank which also acts as this project panel, their lock in period date is from the date of offer letter. All these while it's their practises...

Cheers~~~

This post has been edited by xiaopygu: Jan 11 2010, 12:48 AM

i did Use my own loan lawyer. So far not much problem.

This post has been edited by xiaopygu: Jan 25 2010, 07:38 PM

me. checked with developer prior that..it can be done.

In fact every bank does give grace period but vary fr one bank to another. Usually will be 2 weeks.

BAnker won't tell u to avoid u everytime pay late. However some of the bankers mght not know abt it

it's either the mrta interest or legal fee financing interest.