If it is owner occupied, then u get higher margin of financing..
if it is for investment, your margin of financing is automatically slash 10%..

but if you buy > 5 properties, you next property will still be considered investment, regardless if you declare owner occupied..



cheers!

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!

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 only capital repayment can be withdrawn, and process need to withdraw from branch, as well as give 3 days notice.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,

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!