If that is true, it is really a no brainer to get max asb loan and invest the rest in as1m. Short term and long term surely be a winner as compared to those who masuk every month bit by bit. Leverage is the key

that's why as1m always available to those have max their asb.

Very2 good habit.

Try to max your asb

This post has been edited by davinz18: Jun 30 2013, 03:06 PM

One of the biggest misconception for people that invest using ASB loans is that banks will always sell the idea that the returns include bonus as absolute when it certainly isn't. The calculation of ASB bonuses are not as straight forward as dividends and lumping it together to show how 'healthy' the margin is a blatant lie in my humble opinion.

Investors should always understand that interest rates are not static and will always move. Personally, if your margin is less than 3% excluding the bonus, you're not leaving much room to manouver when you're tied down with a long tenure because the OPR will shift given the fact that interest rates are currently very low.

My 2 cents...

Agreed

the loan must be more than 1 year than u can ignore it. ASB loan will come with special codes in CCRIS so we know when to ignore it in the commitment

this is new info. can you confirm it?

although i've seen a few cases where a person with 200k asb loan over 20yrs can still manage to get a 300k home financing

No issue i believe. U put ur asb loan as ur commitment but also dont forget to put ur income from dividend as well when u fill in the form for housing loan.

CCRIS includes all loans regardless of type in their reports because no matter what type of loan it is (HP, credit card, housing, personal, ASB loans) are still considered as risk exposure to a person. I don't believe that ASB loans are excluded when banks perform their risk and credit assessment on potential customers. They may have a lower weight-age and risk scoring for ASB loans but it does not mean that they're excluded.

When BNM enforced the prudent financial framework for FI's to follow, the former insisted that all types of loans are included when calculating a customer's exposure against NET income. If I'm not mistaken, even PTPTN loans are also taken into consideration but may be neglected if the installment or the total loan amount is small (<100k loan with RM100 installment). So to a comment in the previous post how someone with ASB loans can still get a housing loan, banks (at their discretion) may still accept the application but the customer may not get the best rates possible; one may get say BLR-2.5% if without ASB loan but may only be entitled to BLR-2.4% or lower if the former has some ASB loans.

While BNM does not have oversight on FI's registered under MOF, these institutions have begun reporting to BNM for CCRIS, FISS, ITEPS, EILIS, ISRS and a whole host of other stuff that BNM requires reporting either on monthly and some even weekly basis. These MOF registered FI's used to be a loophole which have now been closed by BNM thus causing customers who "used" to take loans from these institutions to no longer benefit from not being included in CCRIS reporting.

At least we haven't reached the stage of those in the states where even your behavior in paying bills such as your mobile phone actually contributes to your credit/FICO scores

This post has been edited by hyelbaine: Jul 1 2013, 09:19 AM

I did some reading few days back, saying majority of young Malay that have a lack of knowledge in loan, CCRIS etc having a major difficulties for house/car loan application because they applied 200k loan and the monthly payment delayed - thus showing a bad payment string on their CCRIS.

unfortunately, i am in that category liao

no credit profile as i never had any loans under my name

Wah u buy everything cash ka?

it makes things easier

i dont know about housing loan but in hp loan, asb loan that is > 1 year would be excluded in the commitment calculation

i work in hp department

+1.

Not only HP, mortgage loan also the same.

So Nice

it is nice up to a certain time

when u want to buy that 1.5 mil semi detached house, u can't secure a loan
then u want the credit card to go travelling overseas with your family, they rejected your application

true story for the cc...

so sad

Permodalan Nasional Bhd (PNB) has succeeded in attracting over 240,000 new unit trust account-holders in the first five months of the year to increase the total to 11.48 million.

Chairman Tun Ahmad Sarji Abdul Hamid said that via promotion programmes at various levels, PNB was confident it would attract the younger generation to invest and help them plan for their financial future.

“As at May 31, the fund size had increased by 13 billion units to 167.4 billion units through new investments and re-investments.”

Malaysia Boleh

This post has been edited by davinz18: Jul 2 2013, 03:48 PM

based on my bank manager's advice, i took out a 100k loan for a very short 5 year tenure

after 1 yr, now banks are sending me cards w/o my approval. stupid banks. if want to send me cards oso dun send me mc world or visa infinite with just 10k limit...


anyhow, the 100k i w/drew was placed in AS1M fund, as explained before, for leveraging purposes

now, instead of just earning 8% from ASB, i earn a total of 9.3% for the 100k sum, after deducting the interest rate