Need some advice for housing loan from AIA will it also apply the same BLR as per what our local bank does.

Lately saw the promotion from AIA for housing/personal loan with interest 4.2 per annum.

is it worth to apply for it?

If i'm not mistaken... AIA Home Loan is fixed rate.
correct me if i'm wrong..

If u want fixed rates go for aia.
Bear in mind it is not flexible

Usually i dont think there are any more fix rates available , as most banks are now offering floating rates.

If its fixed ? the tradeoff here will be what if the BLR goes down ? then paying 4.2% yearly is not as good as paying it at a much lower interest. Of course if it goes up then the fixed 1 stands out , however no one would know when its goin UP or DOWN

BLR is at the moment 6.3% and it varies depending on the OPR(overnight Policy Rate) By Bank Negara , Usually BLR is always "-" minus instead of a "+" thats because 15 yrs ago ,

Banks and Finance Company dont merge as 1 , therefore the profit gather by bank is insufficient to cover up their overhead expenses/costs, thus gave an increase which is a plus for the BLR to profit (Anyway all banks profit via interest rate , the % that is) , but now at present Bank + Finance Company (Merge), theyve became 2 in 1 so whtever theyre selling being unit trust , public mutual and so on , both parties benefit and therefore they tell the public "OK la. since were making much , ill give you guys the public a discount in BLR," therefore it is now BLR - X% (the X% is according to how much loan is given)

Hope tat clears it up , btw BLR (base lending rate ) what it is ? well everyone knows Aw to pronounce it but not many know wht it means . Well actually its just a fancy name put on property rate, nth much . Also the BFR/IFR (Islamic Finance Rate) stands at the same at 6.3% as well.

If you want to know more, or get an advise/gettin on/a housin/mortgage loan and mortgage insurance (MRTA/MLTA) maybe you can consult me on that. Thanks and please to meet your acquiantance

Best regards,
Aaron Aw

aarouroni@yahoo.com

Hi,

This is some info regarding AIA Home Loan:

You can download here  PDS_Home_loan.pdf ( 36.76k ) Number of downloads: 685


The problem is, AIA too strict in term of approval. they will look into address of the house or developer.

If u interested, u may provide me the address of the house or the developer (if still in progress). If in the negative list u can forget this AIA home loan

Thanks

Aia loan more for salaried workers
Yes, strict on approval
They don't finance everywhere
Some only 80 percent financing

If 4.2% is fixed rate, then it is a good deal. Current floating rate is BLR - 2.2% and BLR is expected to rise this year.

but if 6.3-2.2 is 4.1 , then currently floating is good, well if it rises it wont be so soon, depends lo ,thats aw REFINANCE came about but do check what are the CATCH as in the Terms and Conditions for a fixed per annum, always got a CATCH

Any how, thank for the informative reply.

I'm current looking for house and would like to know which bank offer the most best deal and what kind of "flexible" as u guys mean on baking terms?

hey bro im doin housin loan for ocbc and hong leong bank , wana make an appointment ? then u decide which is good for you , i have no say mail me man aarouroni@yahoo.com or call me 012-9251925 , we can discuss further and c which suits ur need all i wan is to HELP haha, btw than names Aaron Aw

Bro Aw, where is ur location? me Sungai Petani, Kedah lo.... can meet ah?

hahaha aiyo ermm im in KL man , anyway we can reach each other via mail / fb/ ym add me my address is aarouroni@yahoo.com, u wan me to survey or check value property also not a problem , do u know roughly what are the docs u need to standby in order to aply for a loan ? most importantly u edi decide which place you like to get to stay/invest ? Ill do my very best to give u the best solution, btw how much is the property ur lookin at ?

not for me in kl man. currently work and stay in kedah and may think of looking property in kedah also since this is also my birth place.

so if you have any nice property in kedah (especially in Sungai Petani, kedah either new or old) just pm me and my budget is around rm 150-180k (can get what i wan in kedah state )

bro I cant help you find a house there or anywhere coz Im not a real estate agent , so sorry cant help on that , but once you have a property in mind and want to apply for loan that I can help , and if you want to survey or value how much the area is before you negotiate with the buyer/seller, I also can help, even if ur in kedah so don worry la hahaha

AIA & ING give fixed rate = true
strict on approval = true
but one free tips, if they reject also means that place not tat good either.
property price too high, or bad in geography etc...
if they approve, rest assured good spot.
excluding ur capability of cuz if ur record not nice also can forget about it.
current fixed rate is very good idea at 4.x%
average blr in malaysia top hike was 12% lowest was 6% excluding 5.55% 2009 below benchmark rate. and average is 8.77%

try and go for ING or AIA if they reject then only seek bank packages.

unless u are good at auditing the whole mortgage loan thingie every day/month'year since it fluctuate yearly, and things moves n changes always. blablablablabla

Thanks for the tips, sure make me understand more in the property and financial industries on how really they can go about.

Nevertheless, sure need to crack further my brain before buying any property

I believe AIA/ ING is offering fixed 4.85%

not bad, i would suggest you to give it a try if you think the market may rise to 85 basis in these 3 years time, which is quite likely happen.

btw, from what most financial consultant says about BLR is always 8%+ is untrue. They take the sample data from the whole lending history and is not focused on recency. This is what i get from http://www.blr.my/blr-history.htm :

Year BLR (%) Remark
2010 6.30 Adjusted July 2010
2010 6.05 Adjusted May 2010
2010 5.80 Adjusted March 2010
2009 5.55
2008 6.75 Adjusted March 2009
2007 6.75
2006 6.00
2005 6.00
2004 6.00
2003 6.50
2002 6.50
2001 6.75
2000 6.75
1999 8.00
1998 10.50
1997 9.25
1996 8.50
1995 6.60
1994 8.25
1993 9.50
1992 9.00
1991 7.50

for more than 10 past years, BLR is around 6.x%, it can sky rocket to 8.x% but do not foresee it happening in a year or 2...

So, pick wisely... and think from an economical way, if BLR rises, no ones can afford to pay the additional interest, and people loses appetite. And the banks still need new businesses to help them grow. So, the will most probably have their offer rate revised from time to time.

The only way the bank's offer rate is ever going to be less attractive is when the nation is taking strict measures to curb inflations....

Catch our latest AIA Home Loan Offer for LIMITED PERIOD ONLY!

AIA Mortgage Save
4.85% p.a. fixed up to 30 years
5.25% p.a. with Zero Moving Cost*
*For Zero Moving Cost package, AIA will bear the valuation, legal fees including stamp duties

The wise decision & long term benefits of AIA Fixed Rates:
•Peace of mind with loa loan instalments fixed for the entire loan duration

•Lock in at low historic rate of 4.85%p.a. despite increasing BLR trends

•Smart financial planning by securing your family home first…the biggest single financial commitment up to 30 years.

•Enjoy real” capital gains as your property appreciates and interest cost remains fixed.

•No horrifying experiences with Guaranteed “Fixed Rates” unlike BLR packages as BLR and spread is “subject to change” as stated in banks’ offer letters.

What's more?
No prepayment fee imposed if own FULL settlement thru own savings, EPF withdrawal or sale of property.

Pls PM or email me at mortgagebrokeraia@gmail.com for further enquiries.

rgds,
Jessy
AIA agent

Howdy AIA home loan promotion.

not so familiar with the term used in the banking industries nowaday.

But can you give a compare chart on the AIA and banking loan interest?
sure it make me see more clear on what you're promoting.....