U sure ah bro?

Bro thoseeyes didnt mention the surplus payment goes to capital repayment, hence the payment treated as advance payment and no principal reduction. This is wat OCBC banker told me since I applied the loan as well.

Any OCBC senior can confirm this?

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Added on July 28, 2012, 2:47 pm
More or less, you are correct.

But OCBC told me capital withdrawal took 3 days instead of one week.

Anyhow, this is Semi-Flexi loan , of course cannot compare to SCB Mortgage One, which is Fully Flexi without hassle free.

For own stay, I much prefer Full Flexi Loans. Investment, it doednt matter... Hehe

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Added on July 28, 2012, 2:50 pmHmm... If i remember correctly, u need to inform them or write behind the xheque that this payment is for capital repayment which allows u for withdrawal.

If u keen to make extra payment and more hassle free, u should swift to flexi loan, full flexi not semi flexi...


This post has been edited by Chris Chew: Jul 28 2012, 02:50 PM

I'm also taking OCBC loan. Whenever you pay extra, it will be automatically treated as "advance instalment" and cannot be withdrawn.
This is like you pay in advance for the monthly instalment in the future.

Don't worry though, because this extra payment will immediately save you interest. You can check your daily interest to confirm this.

Another type is "capital repayment", this can only be done through cheque deposit or over the branch counter. This will also immediately save you interest, but you can withdraw this by giving OCBC 3-day notice (minimum withdrawal amount 5k, and increments of 1k for my case).

Either way, you save the same amount of interest

Just a note, in online statement, your outstanding balance = total balance - accrued interest

"Another type is "capital repayment", this can only be done through cheque deposit or over the branch counter. "

Can that be done via online fund transfer?

The information I got is no, online fund transfer will be automatically treated as "advance instalment".

Really leceh like that ..

ya, withdrawal also lecel, have to do it over counter....

that's the compromise we have to deal with semi-flexi package.....

This post has been edited by chiew: Jul 28 2012, 10:21 PM

I find it good for me. At least it is not 'easy' to withdraw the money when mt hand 'itchy' hehe

let me stress again, semi flexi and fully flexi is not only based on the difference on the withdrawal/redrawal part.

OCBC home loan is neither semi or fully flexi. It is a flexi package.

semi flexi package typically has these features:
1) requires you to phone in to indicate the extra payment as early settlement of advance payments
2) if you fail to indicate, you will be charged 1% (some banks do this afaik)
3) if you indicate advance payment, no additional interest is saved as "advance" payment will only be credited to your loan account when it reaches your cycle date, so it is plain advance payments. and must be in multiple of your monthly payment.
4) For redrawable prepayments, you need to indicate separately and Redraw charge of RM50 is imposed (M*B charge Rm25)

full flexi:
1) current account tied to loan account
2) auto debit from current account at month end and interest is calculated based on outstanding balance minus amount in current account
3) maintenance charge of RM10 per month
4) setup/ processing fee of Rm200

OCBC home loan:
1) no need to call in whatsoever, all extra payments (of any amount) will go into your loan account and interest is saved immediately (exactly like fully flexi loans). you may pay 2/3 months in advance, no issue
2) no maintenance/ setup/ processing fee (you'll save a lot, brother...)
3) for redrawable prepayments, you can pump in cheque or direct over the counter.
4) Rm10 is charged for each redrawal and T+3 days processing time

In conclusion, everything in OCBC home loan is same as flexi loan, except for the redraw part and cheque book facility.

** To Chris Chew, yeah, absolutely interest is saved immediately... trust me... i am the expert...

It's not a reduction in principal balance, but who cares? Interest computation wise, it is going to be:

(Principal balance - Advance payment) * interest rate * no of days/ 365

** but bear in mind, if your package is "service interest during construction period", please DO NOT pay anything extra, it wont help you save anything because there is no principal deduction as yet.

Anyhow, those amount will go into advance interest payment (But do we really need to pay the bank interest in advance?)

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Added on July 29, 2012, 1:29 pmAbout the cheque deposit, there would be a cheque deposit slip.

on the bottom left, there are a few options for you:

1) installment
2) capital repayment
3) early settlement

*for capital repayment it must be in multiple of rm1000 with minimum payment of RM1000

This post has been edited by kok_pun: Jul 29 2012, 01:29 PM

just out of curiousity, would the daily interest in a leap year be divided by 365 or 366?

This post has been edited by chiew: Jul 29 2012, 11:43 PM

not sure bro... that is a good question...

from my daily interest, it seems like it is divided by 365. but i wish i'm wrong

do you know mostly other financial institution do a 30 days per 360-day calendar year?

so if you take ocbc loan, it's 30/365 and you save more each month

must the reno loan applied together with the home loan, or it can be applied when the house is finished built and ready for renovation?

the reno loan must be apply together with the home loan

validity is 1 year from approval date

jus curious, what is the interest rate for the renovation loan?

My case BLR+0

Kok_pun kor, thanks for clarifying.
currently, three bankers are dealing with me and said different things. OCBC did claimed they have the above features you mentioned. but did not mention the reno loan nor top up loan.

I do not mind to pay more in the advance payment, as long as it could help to reduce the interest. and i don't think i need the flexibility of withdrawal, hence, saved the RM 10 for month.

HSBC bank SA kept telling me that fully-flexi loan is better as it gives flexibility and reduce interest. She kept telling me other bank like semi-flexi will not help reducing interest, only fully-flexi can reduce interest (which i really doubt, as OCBC SA already mentioned to me their feature)

Another bank is the Hong Leong Bank, saying that have all of the features like OCBC. The interest is calculated daily based on the total principal - advance payment, but the amount in advance payment is not withdrawable, and can be only used to deduct the next month payment. Prepayment also not withdrawable.

REally don't know which one to believe. afraid what they said will be different stated in the Letter of Offer.

ask the respective bank's call center (not the banker) 2 things:

1) advance payment (not capital repayment), are they contributing to interest saving? Do i need to indicate it as early settlement?
2) how much is the redraw charge for capital repayment?

it helps you to compare

it will be BLR -0% for 10 years of repayment period

how come ocbc don't give monthly statement? not even online version.

every month i have to guess how much is the interest paid, etc.