Hi,

Does any one using this loan package. Pls share some light to me. My main concern is the advance/prepayment. Let's say mthly installment is RM1k, and I pay RM1.5k every mth to the loan a/c. Does the RM500 will deduct from the Principal amt , then reducing the interest charge?

I called up two mortgage officers.

One said"No", the extra payment will park in the a/c and utilise as a mthly installment when due. Notice has to be given to bank if want the extra payment to be deduct the principal. She advise me to take up the full flexi mortgage loan.

The other one said YES, the advance payment of RM500 will be deducted to principal, hence reduce the outstanding amt and the interest rate chg, automatically done in the system. She is not advise me to take up the full flexi as there is a mthly charge of RM10.

So, which one is correct ah? I also blurr blurr now.

p/s: Does the full flexi calculation of interest is the same with the conventional loan when there is an prepayment? Anyone know?

I did ask the same question. I got answer on the no. 1 from the agent.
If u want to clear ur principal more, u got to inform bank.
That's for semi- flex. I never like full flex package.
The more and faster u settle loan, the better it is.
Rest not very sure.
I m also interested in Islamic loan from hong Leong with no lock in.
Not sure if it's true

maybe i can help to englighten on this;

there's a different between a semi-flexi and a full-flexi.
1) Full flexi = housing loan acc linked with current acc
2) Semi flexi = housing loan only (standing instruction or schedule payment from current acc is not consider linked, but more of an instruction to transfer fund from c/a towards your loan account on a specific schedule.)

explanation;
scenario 1= a full flexi mortgage structure is linked with a current acc, in which the balance in c/a will be taken into consideration when it comes to interest calculation on your principal. I'm suprised that the officer says "no" cause theoritically, even if there is no extra payment made towards the loan acc, the balance in your c/a will still be taken into consideration as principal reduction.

by right, it doesnt matter if the additional is made towards the loan or the c/a, it is still principal reduction if its in either one of it. by left... i wouldnt know how it works there... (check with her again perhaps?)


scenario 2 = semi-flexi has only 1 account. in order for your to reduce your principal, the money MUST credit into the housing loan account (subject to LO TnC). any payment made to your c/a has nothing to do with your principal as these accs are not linked. so the 2nd officer is "korek". =)

hope the above helps.

This post has been edited by merce: Mar 10 2011, 12:04 PM

Thanks for the explanation.

Actually for scenariio 1= I asked the officer regarding the conventional loan, she said not flexi then advise me better to take other fully flexi package.

Scen 2= so this is "korek" haha. You means whatever extra payment to loan a/c will deduct the principal amt. Come to this LO, how about the T&C stated that we have to give advance notice to make extra payment..... but the officer told me not need because their LO not update, the LO still based on the old one, but the banking system already upgrade. How come ? I am afraid after signing will regret later, every mth has to notice bank to give advance payment .

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Added on March 10, 2011, 12:56 pm@ Neoh,

Got to inform bank? I thought automatically deduct from the bank system?.Why dont like fully flexi? If any time make advance payment has to inform bank, i wld rather take fully flexi. Save time.

Heard also Hleong islamic no locking period, hope you can share with us if you got any futher info. Thx.

This post has been edited by macong: Mar 10 2011, 12:56 PM

whether its semi or full flexi, its more or less the same thing. just think of it as a manual car or auto car... higher FC and up-keep fees for the convenience vs more leg work with lesser maintaince cost... relatively speaking.

from personal point of view, i'll say go full-flexi if you have the additional cash and IF you going to roll the money very often.

else, stick with semi-flexi as its more straight forward when it comes down to numbers.

i'm not entirely sure about UOB's pratices, but u can check with the officers what sort of notice to make the additional payment? over the counter notice, 1 month notice in advance etc.

any UOB officer here to help out?

Not sure I understand what you mean. Do you mean, when you have additional, let's say RM10K, you park in the bank.

1)But the bank don't automatically deduct from the principal thus reducing interest?
2) Bank only consider the money as monthly installment to deduct every month.

For eg. loan 100k, park 10k, interest should be 90k only, but UOB bank does not charge at 90k, but charge at 100k instead. That what you meant?

Their bank system will deduct the principal automatically. ie. loan 100k, park 10k, interest will calculate base on 90k.

Anyway, I have changed to full flexi loan, less hassle.

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Added on April 4, 2011, 9:35 pmThank a lot for the car explanation thing . I have taken the full flexi one.


This post has been edited by macong: Apr 4 2011, 09:35 PM

any UOB home loan agents here?

I think you guys have not met up with more professional mortgage consultant. Let me try to explain this (Btw, I am not a bank officer)

Case : example.
1. Loan amount : 100k
2. Monthly installment : 1k

A. Full Flexi

- you will have 2 accounts : one is saving/current and another is loan account . Let just call them Account S and Account L
- If you have extra money and want to minimize the interest charge onto you to . Then you can pay the usual 1k into Account L and the remaining money (e.g. 4k) into Account S.
- The interest will be charged based on the balance between the 2 accounts, in this case, it could be 95.4k (100k-600-4k, as another 400 is paid on interest).

Semi-flexi :

1. YOu will only need 1 account actually. You can still save interest by putting in extra money into the so-called Loan account. well, if you put in 5k, 1k will goes into payment of installment, while you need to inform (informing is simple, you can tick on the form or put remarks on the online transfer, not like calling or personally going there) the remainly 4k if you want to park under the principal (reducing the principal) or into a virtual account (no number) that you can eventually withdraw if you need the money.

Both will help you to save interest. But full flexi is more flexible as you can easily see the amount of money in the current/saving, and if you need, withdrawal is pretty simple (ATM, check, etc). But you need to pay RM10 per month. This is good if your salary is deposited into your saving or current account and you have lot of cash flow there....so while waiting for the cash to be withdraw or pay for other things, you are actually saving interest.

Semi-flexi, is stil the still same concept and also allowing you to save on interest, but instead of a saving account, you have a so-called virtual account. You still can withdraw but not so convenient like the saving account. This is good to save RM120 per year, and that you dont have much movement in money....if your loan amount is less and your moving cash is not that much, seriously, just take semi-flexi and save the RM120 per year.

Dont be confuse with the payment to reduce principal , this shall be the same for both type of loan. Which means if you want to reduce the principal, the money that you dump in will not be able to withdraw. (of course now some banks offering slightly flexible way).

I would suggest that with both bull or semi flexi account, there is no need to reduce the loan principal, you can put in more cash to reduce interest (into the saving account or the socall virtual account under different loan type respectively). Save the money for contigency.....and you shall only do so (reducing the principal), when you either about to pay off the house loan or really have too much cash to spare and very confident that you would not need the extra money.

e.g. loan principal after 3 years, is 85k ....if you have cash of 40k, no point dump in to reduce the principal. Because the only reason to reduce principal is to save on interest, since both flexi loan already allowing you to do so. Unless you have 85k of cash, and now, you want to pay it off or you just need 40k cash, then you can consider putting int the 45k to reduce the principal.

This post has been edited by spydermind: Mar 6 2012, 06:59 PM

very detailed explanation thanks a lot..anyway abit off topichere,which bank having the best mortgage package to be offer so far.??

Wait. You pay RM 1.5k every month to the Savings/Current Account or Loan Repayment Account?

If you mean you credit RM 1.5k every month to your Savings/Current account for Auto Debit, then below is my answer,

The first officer answered you correctly.

The second officer, unless your RM 1.5k is paid directly to the LOAN REPAYMENT account, then yes. If SAVINGS/CURRENT ACCOUNT, sorry, the officer might be confuse and wrong answer given.

UOB Intelligent Home Loan is a Conventional Loan, not Fully Flexi Loan. I can say, their Conventional Loan is bit same as OCBC Semi-Flexi Loan but UOB Intelligent Home Loan is the best ever Conventional Loan with redrawal facility, as their offers weekly repayment, biweekly or fortnightly ... to have this option, the tenure is shorten as you pay extra per annum ...

Regarding your question,
p/s: Does the full flexi calculation of interest is the same with the conventional loan when there is an prepayment? Anyone know?

May I know what is your actual question? As i foresee, you are confusing btw both packages, so unsure what is actual thing you asking ...

Anyway, i am not an UOB Banker... I will try to answer you if you want ... =)

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Added on March 7, 2012, 2:51 amUOB Good?





This post has been edited by Chris Chew: Mar 7 2012, 02:51 AM

Regarding your question, "Let's say mthly installment is RM1k, and I pay RM1.5k every mth to the loan a/c. Does the RM500 will deduct from the Principal amt , then reducing the interest charge?"

I'm UOB mortgage specialist. For clarification, it will NOT deduct from the principal amount. Unless you want to do so, you have to give branch a notice. Therefore, the extra payment you have paid is NO LONGER can be redrawn. Meanwhile, if the extra payment of RM500 that you banked in to loan account. The interest will be charged based on outstanding balance, which means, if your loan is RM100k, extra payment of RM500 deposited into loan a/c, interest will be charged based on loan amount of RM99,500 (daily rest)...and hence, the RM500 CAN BE redrawn. And of course, interest charged is reduced. Get clearer picture?

This post has been edited by mattyl: Mar 7 2012, 09:49 PM

hi i have another question ..
let's take the example from above..

Loan: 100k
Monthly installment: 1k

So let's say... say if i have actually 100 k and put it into the current account. So the balance between my current and loan account is 0. so basically the interest i get is also 0 rite? will they allow this?
is it allowable? i can deposit my money in the current account get the interest..... also removed any additional interested charged into my loan. Besides that, i get to redraw my money incase of emergency by write a check from the current account?

i need advise here from the professionals. Thank you...

UOB can apply as 3rd party loan ?

no interest will be earned if you put more than your outstanding loan amount. Of course, the monies is yours, you are allowed to take out the monies by issuing cheque.

To recap, you have a homeloan of RM100k, but u also have cash of RM100k, which you can prepay as capital repayment. Question is, whether your interest charge for the month will be 0...

For OCBC, the answer is YES. No interest charged for the month... because interest calculation is based on total outstanding amt. In the above scenario, loan = RM100k, prepayment = RM100k, total outstanding amt = 0, so interest = 0.

Other features... NO NEED to give any notice for prepayment, all prepayment will REDUCE INTEREST charges, NO NEED to set up current account, NO NEED to pay set up fees and monthly maintenance fees. Redraw of prepayment ALLOWED, subject to T&C.


Cheers!

Mine is under UOB semiflexi loan. I just dump in 70k into loan acc. Can I redraw in future? Thx

its same as semi flexi.
they dont have full flexi.
just another fancy term they use.

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Added on September 21, 2012, 5:02 pmwhy not, u need minimum withdrawal like 3 or 5k and 2 to 3 days for disbursement upon instruction to bank

This post has been edited by peri peri: Sep 21 2012, 05:02 PM

Need assist regarding UOB home loan.
May i know how can i get the virtual account if semi-flexi account?
I tried to contact bank officer but they said do not have such thing which they told me before I can get a "3rd account number" so that i can deposit money in order to reduce principal.
Does anyone know how much is the current BLR and BR for UOB? Discover that my monthly interest charge higher without notice.
Also anyone know how to calculate interest by daily rest? What is the formula?
Thanks.

hi, i got some problem with my so called UOB semi flexi loan, although I deposite extra cash into the account it seems the interest charge is the same, as if there are 2 account which seperate into principle loan account, and the other just saving account when comes to the end of the month, it deduct interest plus repayment from there, anybody can clarify?? Do i need to write in everytime i got extra cash??

Interest is the same. The monthly repayment is the same. It just reduces the term in the long run. Putting more money into the account does not reduce the interest. If you want to offset the full loan, then its a different matter.

sorry digging up old tered...but this UOB home loan statement is really quite confusing to me.... how come they make simple things to complicated....