From what I've found out when I asked SCB about this kinda loan (housing loan+current a/c).

Example:
Loan Amt: 100,000
Interest: 4.2%
Monthly Repayment (estimate only - 15 yrs tenure): 905

If u deposit 50,000 into the current account linking to the housing loan, it'll automatically ofsett the loan amt to 50,000. Hence:

Principal: 50,000 (the balance of 50k still remains as unpaid but with the current a/c deposit of 50k, it automatically stops interest on this balance)
Interest: 4.2%
Monthly Repayment (estimate only - 15 yrs tenure): 905
(Actual repayment is 452)
(905-452=453) (this 453 should be parked into the principal amt la)

I could be wrong though.

Do call up a bank officer for a better clarification.

But then again, if you already have the cash - what is the point in applying for a loan?

Hey,

Not really sure on the MRTA value.

Coz for MRTA, you can choose to buy 15 yr (as per tenure period) or 10 yr, up to you & also bank's discretion. If say you buy 15 yrs, then MRTA shld be able to cover the whole loan tenure (actual loan amt. Not the 50k after deduct the current a/c.).

You do know that if you buy MRTA - the MRTA money (if there is any misfortune), it will go to the bank to offset your home loan right?

And your 50k current a/c amt will go to whoever you nominate under your Will.

Oh yea, please take note that there will be a service charge (forgot how much - not sure is it RM50) monthly to 'combine' both accounts (home loan & current account).

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From all the comments on forums that i've read, usually lower loan amount will get lower rates. But then again, i think it's the same thing.

If you borrow more - higher interest rates but still need to pay interest.
If you borrow less - lesser interest rates but again still need to pay interest.

But bear in mind, interest is based on balance of principal loan amt. I think if you borrow less will be better coz interest rate is based on lower amt borrowed.