hihi,

my view is that.. for full flexi with current account, it is most suitable for businessman who expects huge cash inflow and outflow in the same month... for example, cash inflow in beginning of month, and cash outflow during mid month.. interest savings would for the short period of time would offset the monthly maintenance fees of maintaining a current account.

OCBC flexi features .... is most suitable for salary earner or anyone who does not expect huge cash inflow and outflow within the same month. because OCBC package does not require current account, customer do not incur set up fees and monthly maintenance fees. Only incur RM10 per withdrawal. Because most ppl deposit their excess cash to enjoy interest reduction, and only withdraw excess cash if there is emergency use of cash, or good investing opportunities...

so why chose a package where you need to pay monthly fees even if you don't fully utilise the current account facility? ;-)

i may be biaised, because i'm from OCBC... but that is how i view the suitability of our home loan packages...


cheers!

Currently doing my refinancing. My objective is to ready cash for business investment or etc....
I have few questions, scenario, Total loan 400k, monthly installment 2k.

1) How does flexi and semi flexi work on daily interest. Let say I put in 10k on the 1st day of the month and withdraw it on the 25th. How much does it affect on my monthly repayment.

2) How flexible if I withdraw my money and bank in money to my flexi or semi flexi account? Possible using online transfer? exp like bank in cheque then use online to transfer out money from my account?

3) What charges apply for flexi and semi flexi.

4) Any bank offers a good flexi?

Please see response... specifically for OCBC offers...

1. No difference between OCBC (without current account) flexi loan vs OTHER BANKS (current account) full flexi.. Same daily rest interest reduction.

2. For OCBC, prepayment is easy... 2 types - capital repayment and advance installment... online transfer only applicable for advance installment. But cheque payment is applicable for capital repayment. Withdrawal is less flexible.. only capital repayment can be withdrawn, and process need to withdraw from branch, as well as give 3 days notice.

OCBC flexi features .... is most suitable for salary earner or anyone who does not expect huge cash inflow and outflow within the same month. because OCBC package does not require current account, customer do not incur set up fees and monthly maintenance fees. Only incur RM10 per withdrawal. Because most ppl deposit their excess cash to enjoy interest reduction, and only withdraw excess cash if there is emergency use of cash, or good investing opportunities...

3. Charges applicable - other full flexi packages require maintenance of current account with cheque book... therefore will incur set up fees and monthly maintenance fees for the current account... Our OCBC package, does not require current account, and therefore will not incur set up fees and monthly maintenance fees. Only need to pay RM10 per withdrawal.


Cheers!

Hi, got few questions to be clarify, please help me.
1) I got offered by OCBC (180k + 40k renovation), the sales person say can give BLR -2.4% (normal -2.2% if loan <200k) if I sign up for the renovation loan. And he mentioned that if I dont utilize the renovation loan in 1 year time, it will be forfeit without any extra charges. Is this real? I am afraid that there are hidden charges, as I am not planning to use the amount actually, just want to enjoy the lower interest.

2) What do you mean by the online transfer only applicable for advance installment? Means I cant pay the monthly installment by online transfer? I need to pay by online transfer as I am not willing to go to branch just for the monthly payment as the branch is quite far from my place.

Appreciate if you could help to clarify my question before I sign up for the loan as I have received few other offers which is similar too. But I feel OCBC service is very fast and I like it.

Bro, I agree with your Answer 2 and 3.

But your Answer 1 short statement is correct but you didn't answer in full for what smwah said in "Let say I put in 10k on the 1st day of the month and withdraw it on the 25th. How much does it affect on my monthly repayment."

Yes, it might be no difference only if customer put in the 10k into OCBC Home Loan Account, not Savings Account, but there is difference in if customer take flexi loan, he/she can put in the RM 10k either Home Loan Account or Current Account to offset the capital repayment interest.

Hi,

Sorry, maybe i just tried to explain (too simplified), without considering readers may not have the basic understanding abt OCBC...

when i say daily rest, and no difference, i meant that the customer would put in RM10k into both OCBC home loan account vs Other Bank current account linked to home loan (comparing apple to apple). and if withdrawal is made the same day, it wouldn't make a difference at all..

because both OCBC home loan account and Other Bank current account's daily rest calculation is exactly the same. interest is calculated based on remaining outstanding home loan balance for both...

On another question relating to - "How much affect on monthly repayment", - No, it has no affect on monthly repayment, because monthly repayment is fixed and agreed upfront... it will only affect the final installment amount depending on the remaining interest (bank will advise final installment for settlement release letter.



Simple answer:
1. Yes, signing up for R&R, but finally, if you do not drawdown the R&R, it will lapse within 1 year after full disbursement. You will not be charged any interest, if you do not drawdown.

2. You can perform online transfer to pay your installment. What i'm talking about is specifically on the prepayment... for your prepayment, there are 2 types, capital repayment and advance installment. capital repayment enables you to make future withdrawal but u still need to pay your next installment. For advance installment, you do not need to pay your next installment, but u cannot withdraw.. so capital repayment, can only be done via 2 methods, ie pay over the counter, or cheque deposit machine. any other repayment mode, will automatically be treated as advance installment.

Hope the above helps..


Cheers!

Thanks for the clarification. So that means after sign up for the renovation loan, i need to sign again for the renovation loan to be disburse right? Which means if i dont sign for disbursement then consider not utilize and no interest charged right? This is my 1st loan so not very sure about the technical term like drawdown.

under capital repayment, is there an option to re-calculate the monthly instalment?

my sales guy said that capital repayment cannot be withdrawn; is that correct?

No option to recalculate month installment, they are fixed. The advance installment or capital repayment only shortens the tenure of the loan.

Capital repayment CAN be withdrawn, advance installment cannot. Might want to double check with the agent if there's any miscommunication.

EDITL If you want to change the monthly installment, you would have to refinance.

This post has been edited by shawnk: Sep 9 2012, 11:35 AM

advanced instalment cannot be re-drawn

capital repayment can be re-drawn

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Added on September 10, 2012, 12:42 amCorrection for you, capital repayment will not shorten the loan tenure.

advanced installment, by the namesake, is advanced future repayments, you may use that to reduce outstanding balance, but to shorten loan tenure, you should be doing early settlements.

btw, afaik, by the book, advanced installments mean you need not to pay for a certain time frame as long as you have extra credits with the bank; on the other hand, after early settlement, you would need to serve your monthly installments as well

This post has been edited by kok_pun: Sep 10 2012, 12:42 AM

Based on my understanding, with capital repayment, you are basically reducing the principle thus reducing the interest. With that you will shorten the loan tenure. Isn't that right?

for interest calculation, yes you are correct! it will use outstanding balance minus whatever amount of capital repayment to calculate the interest.

Money parked under capital repayment is not directly used to reduce loan outstanding because there is an option to re-draw

just like any other banks, under flexi loans, say you have 100k outstanding and 50k deposit in current account. If you wish to refinance from this bank to OCBC, your redemption letter will state 100k instead of 50k.

I might sound a bit like a geek here, but if you play by the book, it is not directly settlement of loan outstanding, it is just a temporary direct reduction for interest calculation only.

so, under capital repayment, with option to re-draw, the monthly instalments and loan tenure is unchanged. Then, what has changed?

Further, is there an option to 'early settlement' part of the loan? (i.e. cannot re-draw)
Would that be considered re-financing thus attracting extra fees?

say you pay rm1000 per month, rm800 is for interest, rm200 is for principal repayment.

if you deposit additional rm20000 to capital repayment, your installment would still be rm1000, but your interest might be rm700 and you principal repayment will become rm300.then your outstanding balance will be reduced and you would save more on interest in future. (snow ball effect)

yes, there is an option to 'early settlement' part of the loan. but my advice to you is just pay more to your home loan. it will automatically be converted to advanced payment.

refinance is a completely different story. If you are talking about re-draw of capital repayment money, the bank will charge rm10

I stand corrected and thanks for the detail explanation

Yes, indirectly, you'll settle it early of your loan (physical loan tenure is shorten).

Any OCBC agent here? Pls PM me. Tx.

Sorry if I'm mistake. For my understanding if for capital repayment, I can save more interest, and might shorten my loan repayment period. I can withdraw them anytime in future with RM10 processing fee, and get the money after 3 working days.

However, i don't understand what is the benefit if I make advance payment?

You save interest up (from the advance payment you've made) until the point it's used to pay off as the monthly installment.

Ok understand. In conclusion, capital repayment is purely to reduce capital, while advance payment is purely pay the instalment in advance with the condition i'm not allow to take them out until the point it's used to pay off as the monthly installment.
hmm...i'm not an agent...my maybank conventional homeloan is more flexible in this way while any advance payment is advance instalment cum capital payment that i can withdraw anytime immediately via internet with RM25 fee. but honestly the interest quite high and I plan to refinance to get better loan if after consider the legal fee and new MRTA is still worth.

Any OCBC agent here? can pm me?