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 OCBC housing Loan, better than other bank?pls debate

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yunalesca
post Jul 28 2012, 12:31 PM

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QUOTE(thoseeyes @ Jul 26 2012, 03:15 PM)
I also have OCBC housing loan. Every month i will pay extra RM200-300. But now i noticed that the extra I made all go to advance payment. I confirmed with OCBC cust service saying my instalment has been advanced till next year. meaning if I dont pay now till next tear also ok.

I thought whatever extra will go direct minus the outstanding principal??

Anyone can help?
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i remember you have to specify whether your extra payment is for pre payment or reduce principal.

pre payment you can withdraw out if you need the money.

reduce principal harder to withdraw. you have to write letter and wait 1 week.

i also interested to find out more. i also confused. the loan agent did not explain well.

ocbc should give out booklet to us for reference.

i still prefer my scb mortgage1. one account, nice and simple. but m1 charge rm10 per month. ocbc no charge.

please help!! !

yunalesca
post Aug 1 2012, 02:32 PM

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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.
yunalesca
post Apr 30 2013, 11:59 PM

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QUOTE(firee818 @ Apr 30 2013, 03:44 PM)
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? notworthy.gif
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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.
yunalesca
post May 1 2013, 09:03 PM

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QUOTE(firee818 @ May 1 2013, 01:23 PM)
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)?
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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.
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