Mar 10 2011, 12:03 PM
QUOTE(macong @ Mar 10 2011, 11:10 AM)
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?
maybe i can help to englighten on this;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?
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
Quote
? I am afraid after signing will regret later, every mth has to notice bank to give advance payment 
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