Hi, newbie here,

For Flexi Loan-Full/Semi Flexi)

If I pay additional money to reduce the principal loan amount(capital repayment), the monthly installment will remain the same. The only different is that for the following installments payment, the principal payment portion will increase (if compare with the one with no additional capital repayment) while the interest payment portion will reduce (if compare with the one with no additional capital repayment) to reflect the additional capital repayment. In this way, It can shorten the loan period.

Is the above statement correct?

This post has been edited by firee818: Apr 30 2013, 03:56 PM

Please advice. Anyone?
Thank in advance

Yes, this is correct. I currently have 2 mortgages :

1. OCBC semi-flexi
- capital repayment over the counter only
- online transfer is consider as pre-payment (do not reduce capital) but reduce interest
- for eg, if you loan RM500K, monthly payment is RM3,000. If you capital repayment RM200K, you still owe RM300K. Following month, OCBC still expect you to pay RM3,000 (even though your loan is reduced already). Just that more % of the RM3,000 goes to capital repay. The loan period is shortened.

2. SCB M1 full-flexi
- Just bank in (online) to your loan account and the loan is reduced.
- for eg, if you loan RM500K, monthly payment is RM3,000. If you transfer RM200K to your loan account, the interest charged is lower and you do not need to pay anymore. The monthly interest is added to your account. The loan period remain the same.

Hope this helps.

Your reply is very much appreciated.

Would you mind sharing the bold sentence, "The monthly interest is added to your account," is it refer to housing loan interest or interest earned from the additional capital pyt (i.e. RM200K)?

I recently got an offer letter for OCBC bank for property under construction DIBS project 4 yrs, but some clause look funny, is it common, if you are getting offer letter from OCBC bank for under cons project, do u have similar term?


"Availability Period of the Term Loan
48 months from the date of this letter or such other period as may be prescribed by the Bank. Any amount not drawdown during the Availability Period shall be cancelled."
>> mean the if the developer take more than 4yrs to complete, remaining amout after 4yrs not drawdown from bank will be bare by me. This make me feel unsecure & not get protected if the project get delay.


"Term loan
Commencement date of the 1st installment replayment:
- Shall commence on the first day of the calender month following the full release of the Term Loan or first day of the 49th month from the date of this Letter of Offer or upon you taking vacant possession of the property, whichever is earlier or such date to be determined and stipulated by the Bank."
>> This mean if the project get delay, i have to start serving my loan by paying the installment amount even the project not completed.

Please comment if u have similar term.

Housing loan interest.

You still need to pay the interest on the remaining RM300K balance, for eg RM2000 per month. Then after one month your balance is RM302,00.00. The following month you will pay interest for RM302K, etc.

SCB won't call you to pay any money. But for OCBC, they will call you to pay the monthly RM3,000.

I have fully paid the SCB RM500K loan. So every month I only pay RM10 and no interest charges.

Not sure about OCBC if fully pay the RM500K what will happen? Will it auto-loan redemption because the loan tenure is now shortened to 0.

-solved-

This post has been edited by Puchong Family: May 27 2013, 01:37 AM

Need quotation from OCBC panel lawyer.

To draft Banking Facilities Agreement.
Loan amount Rm480k.

Prefer firms which are located in KL

PM me

this is interesting to me. the credit card parts.

one of the banker told me that credit card record could not be access by those who wants to check for previous record should we apply for housing loan. but you said the otherwise. i am not saying you are wrong but which one is true?

and what is mobile sales team?

when applying housing loan, bank will check the CCRIS to determine the credit risk factor. if you CCRIS is clean (you do not have credit card or loan), they can't access to your Payment Pattern. thus, risk is higher. so, they might reject your loan. anyway, loan can be secure by putting in a Guarantor. provided the Guarantor has good payment record.

very well explaination.

but is it true, that bank cant access the credit card record when they want to assess the loan application?

and is it true that if there are lots of credit card transaction, the risk is consider as high, even if there are no dues?

i am concern as i am actually just applied my third credit card, and so far i never even once miss the payment, and currently eyeing on buying another property. afraid it might affect the chance of getting the loan.

i'm not sure what you mean by "bank cant access the credit card record when they want to assess the loan application". but from my understanding, they can't see your transaction. but they should be able to see your Amount transacted for the month, how much u re-pay back and did you pay late or prompt. if i have 10K transaction per month, but i settle 10K on time, risk is low. but if you transact 10K, but repay min such as 1K, then ur risk ratio is higher.

some bank (if i recall correctly, CIMB) do evaluate based 5% of the TOTAL Credit Limit assigned to you for all / Combined credit card into consideration. e.g, if u have 3 CC and each of it has 5K limit. they will take 5% out of 3x5K = 15K as ur commitment as well. in this case, RM 750. i'm not sure how true is this cos i remember CIMB told me this last year when i apply loan with them. OCBC, i don't think they have such problem.

the CIMB part is interesting, first time i hear about this. rm750 is calculated as per month or on off?

yup. that also my first time hearing that. i don't know whether the officer bluff me or not. but that is based on her explanation. the 750 will be add into your commitment. thus reducing ur loan ratio.

interesting because it was CIMB banker that told me they dont see any credit card record when they want to evaluate the loan application.

but anyway thanks for the share, i will bring the matter up when i engage with him later.

hi.. i want ask something.. i have 1 property.. my balance now around 50k, but need some money i apply for top up loan but got reject by maybank because my property still not get strata title.. so if i refinance with other bank.. do you think my application will be reject if not yet get strata title.. my apparment already 6 years but still dont get strata title..

If <10 years without strata and your developer not bankrupt, banks should be able to borrow you loan. Otherwise, look for CIMB

thanks for reply,
yup now planning for apply CIMB OCBC... but still got rejected.. i think better apply personal loan la

Wondering if it is possible to top up loan for a OC-obtained house that has not been issued strata tittle?

I had a bad experience with OCBC b4, and no full flexi i think