hi

planning to get a property in which i need a loan lo..
based on the loan, the interest is up already to 5.8, and most of the local banks here offering -blr 1.8 / 1.9

just wondering since those -blr more or less the same, what aspect i will need to take into consideration when going for which banks ?

thanks

Beside the rate, their services (prompt for ur problem) and accessible (easy to make payment) should be the factor of consideration.

i read about something... cant rmb the term .. saying if buying a house.. within a few years period of time.. if i resell it out.. i will be charged xx % ?
so if it better if i go and look for loan when they do not practise such charges ?

it is known as the lock-in period, and lock-in penalty;

if you are to close the loan account within the "x" years from the date of (full/first) drawdown, or another specific date stated in your LO, you will be charged of an amount of "Z"% on the loan amount, or other amount stated in your LO.

as far i remember, only certain Islamic HL products and OD facility are free from this clause.

This post has been edited by merce: Mar 22 2010, 03:44 PM

ahhh.. it only meant for islamic banking / loan ?
hmm non bumi.. can apply those a ?
by the way ... reading one clause on .. the interest instead of using the -blr, it will be based on yearly FD market rate plus 1.x % and it makes this range is still lower than the normal offer. since now the FD interest rate is low.. it should be wise to go for that kind of loan right ? but what happen if FD rate high like it used to be +_+ ...
die.. lolz

This is interesting, may I know which bank is offering FD + x interest rate? As I know in philippines, FD rate (~2%) is low but house loan rate is very high (>8%), if msia is like this, then you are lucky if you get that loan.

cant rmb where i read that before.. if i found that again .. post here )


This post has been edited by FirezZ: Mar 22 2010, 04:29 PM

u can apply islamic loan regardless of your religion. They are known as islamic product due to the fact that their TnC are bound to Syariah laws (islamic laws).

There's only 1 bank in the Malaysia that utilize FD rate as Index at this moment, you can locate them using the keyword "FDR(fixed deposit rate), Malaysia"

yupe.. from eon bank
but will that be a good choice for such loan ?
now fd rate around 2.x % only .... but as for the interest - 1.8 .. it might reach up to 8 or 1x % ?

we cant predict the future.. that's hard decision to be made

i cant comment on that one... didnt bring my crystal ball out today.

Hi FirezZ,

PM'ed you already.

Hope to hear from you soon.

Regards,

Hi to all home buyers:

If you're afraid of the increment of BLR/FD rate, why not taking a fixed rate instead? No more fluctuation on the interest rate, no more worries! You're GUARANTEED to own your property at the end of the tenure, not a day more!

Current floating rate has a lower rate than a fixed rate, which enable you to save interest expenses as long as the BLR stays low. Therefore, it's seems to be a better option if your property is for investment which you intend to sell it off a few years later.

However, if it's a property for own stay, I strongly recommend a fixed rate. What for taking the risk of BLR/FD rate for a long tenure? Please take note that whenever BLR/FD rate increases, you'll either have to increase your monthly payment or extend your loan tenure. One day you haven't settle your loan, whatever interest expenses you have saved initially might be giving them back to the bank eventually. Do you agree with me?

In my opinion, since we can't predict what's the BLR/FD rate in future, why not taking something that is fixed for whole tenure? Floating rate may offer you a potential lower interest rate for 10 years or more, non-guaranteed, but fixed rate can guarantee you a low rate up to 30 years. Which one do you think is better?

If you need further discussion regarding home loan you can send an e-mail to cheahyang_0@hotmail.com and I can help you with the loan application for both fixed rate & floating rate. Thanks for your time reading my post!

Based on my opinion, I have made a list of pros and cons between fixed rate loan and full flexi loan

Fixed rate from insurance company
Pros:
- interest rate is low now and fixed for 30 years (everage blr is abt 8% based on historical data)

Cons:
- to make extra prepayment, you need to give them notice
- not allow to redraw extra prepayment
- must buy mrta for 100% coverage and complete repayment term / or buy life insurance from the company
- need to buy fire insurance from them also, if your property is condo and it has master policy, you need to send them the copy of the policy to refund the premium every year

Full flexi loan from bank
Pros:
- lower rate for now compared to fixed rate
- flexi payment facility, which allows you to offset the interest based on the amount you have in your saving account - save interest
- insurance is up to you
- can choose your own lawyer, if you choose the same one as your S&P lawyer, this could speed up the process, and you might get discount on legal fees

Cons:
- risk of high BLR
- rm 120 / year for maintenance fee

its like we can't predict when we will die, but when u get really sick up to one level you know u will die soon

take one day at a timeloh, once sign the letter of offer stop looking at it. If there is good deal comes out from bank after your lock-in period, then switch bank and get a better dealloh.

yupe.. i think so too .. so now recheck on the tnc in case if there is any "diff" and will go ahead..

aiks.. checked, can only go to those appointed agent (bank) onli for loan ...

---

Added on April 13, 2010, 12:11 pmfinally confirmed on the loan package thread closed
thanks

This post has been edited by FirezZ: Apr 13 2010, 12:11 PM