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.

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