Chris, my computation is just for illustration.

Your formula is right. the only difference is that your formula is only applicable for semi flexi loan.

DRDC means that today's interest amount is added to tomorrow's principal for tomorrow's interest calculation. In your explanation, it is on the assumption that today's interest will not be added to tomorrow's interest (which is correct in the context of semi flexi loan, because they only compound your interest once a month).

Hmm, I don't know which bank is using DRDC as you meant, but Alliance Bank, CIMB Bank, Hong Leong, UOB Bank full flexi loan using the calculation I made earlier.

Maybank has compound loan package, ( not sure similar like you described ) but it has nothing to do with the package of full flexi and semi flexi because it is just a fully linked or non linked current / savings account.

Btw, Semi-Flexi is a Conventional Loan Package with Redrawal Facilities. ( it was called by OCBC due to classic loan since early old days was only Conventional Loan and OCBC do not have Full Flexi Package )

It is the feature of the loan package, which banks promoted this to convince customers to save cash into their account to save more interest ( banks used this package to convince BNM on how to improve consumer savings instead of spending ) but it has nothing to do with the loan interest computation because I doubt a banks will offer 10 packages with 10 interest ( daily or compounding ) as the system maintenance would be super huge and if this is the case, I doubt, bank would able to offer BLR - 2.40% but BLR + 3.40%, lol.

Hi Chris,

I am not sure how I can explain, but you can try to google "daily compounding vs monthly compounding" for some explanation by experts.

http://www.mtgprofessor.com/a%20-%20simple...omenclature.htm


In short is that, there is always a cost you need to pay to the bank.

On full flexi, when you attach your current account to the term loan, you have the liberty to reduce your interest payment at anytime. Bank dont offer you this service for no cost because any reduction in cost for you is a reduction in profit for them. in return, they use an interest computation method that charges you at a higher rate, which is daily compounding.

on semi flex, like u said it is considered as prepayment of loan. You have certain restrictions such as limiting the amount and number of withdrawals, and maybe even withdrawal fees. These are the features to deter you from freely withdraw or deposit excess money into your loan account. In return of these inconvenience (and that they can better secure their margin), they compound your interest on a monthly basis.

so, in the market, you will only see those aggressive players offer full flex loan..eg cimb and scb because they want volume as much as profit margin..for smaller players like ocbc, they tend to focus on margin than volume..and thus they do not offer full flex.

This post has been edited by bengjiun: Mar 23 2013, 08:07 AM

you might refinance few year later, why thing so much just go for which you more comfortable

I understand what you mean, but unfortunately, I don't know which bank under BNM is using compound interest in their home loans.

I have / previously had housing loans in Maybank, Public Bank, OCBC, UOB, Alliance Bank, CIMB Bank, Citibank and Ambank, majority with Conventional and few with Flexi Home Loan, but what I paid under my monitoring, is using daily rest and simple interest deduction.

Honestly, I very enjoying Full Flexi Home Loan, where I really save a lot of interest due to the cash I dump in into the Current Accounts and most of all, I lazy to go bank to fill form for semi-flexi partial withdrawal and wait the cheque 2-3 days later.

I enjoy Conventional Loan as well, but only to the properties I investing because I do not have so many cash to park into all the home loan current accounts and I escape the RM 200 set up fee as well as RM 10 monthly maintenance fee.

My first ever RM 100,000 full flexi loan was enjoying paying full principal every month, because my dad put the > RM 100,000 into the Current Acc even before the loan released and maintain it until today, I checked the monthly installment fully go to the principal without interest incurred and the outstanding loan after 6 years is exactly same with what I compute myself. I believe, this is simple interest way too.

I agreed with the flexibility of the full flex

Oh yeah. I have managed to figure out the full flex loan is slightly higher by about 20k if I borrow 800k. Since I am overseas, to be able to do banking without needing to go to bank is very important to me! So I think I will go for full flex!

Chris, all banks in malaysia uses compounding interest. the monthly payment they set has already factored in the compounding effect.

BTW...i have not personally seen the house, but my mom told me that the car porch can hardly fit two cars? for 25x85 i am quite surprised that this could happen..any of you done some onsite visit?

I am very sure carporch space abit problem park 2 car side by side. The designed problem where the 2 big pillar wasted of space. I don't used any measurement material, but according my eyes to see the pillars around 2x2feet.

That wasted 4 feets (25-4=21) in a carporch. If you get type-B may slightly better deep longer than type-A.

Not sure which Pentas you bought.........or which Pentas your mom viewed ?

Pentas 2 .......car porch...pillar to pillar is 17.5 feet....more than enuf to park 2 camry.....(1 camry...wing mirror to wing mirror....about 7 feet)

I will be getting Pentas 3. Now waiting for the lawyers to send me the snp.

I think the entrance is not aligned to the pillars and the entrance is also more narrow than the pillars? Maybe I am wrong.

Actually I like pentas 2 and 1's facade.

I believed Pentas 3 .....pillar to pillar is slightly wider than P2 n P1 however did not measure that day....

Picture of Pentas 3 taken 3 months back....i think...

Bro what is the status of pentas 3 sales? Anyway i checked p1 and 3. Apparently pentas 1 pillar they arranged it so that parking space seems bigger. However p3 pillar is quite thick. A bit hard to fit in 2 sizeable cars

This post has been edited by AMINT: Mar 24 2013, 02:04 PM

they still have some units for fellow bumis. i took the last non-bumi quota. last heard they still have 2-3 units available (two weeks back)

No need to worry about parking, it is 50ft wide from one gate to the other gate, you can park your car menlintang, menjujur, menterbalik, at outside, trust me, majority people will either park all their car outside or just one car inside, others outside ...

+1..

lol you r funny..

Local mafia

The SA called me back few days ago, non bumi fully sold, hehe congratz you for being taken the last unit. And, bumi lot left 2 units.

I kind of realize that Pentas 3 sales suddenly pick up after the launching of nukilan 3 and rimabayu. Sales has been stagnant for quite a while. Perhaps now only people realize tat in fact Pentas is worthy of its value.

i dont think it is stagnant la, just that a lot of people cant get loan?

i manage to get a very good location unit..facing the small field..very happy because i can park my extra car there, paid rm25k for parking space...i hope my neighbour dont get mad! haha..