Ah you are correct. After further checking, I found that I have been misinformed. I have edited some of my posts in response to that. Advanced payment can be used to reduced capital, only caveat is that it cannot be redrawn.

This post has been edited by wild_card_my: Apr 11 2013, 01:42 PM

i am curious, if i didn't write down on the cheque 'capital repayment' or 'advance payment' OCBC will treat as what?

i got additional question: if my loan is RM1.5mil, i paid RM 1mil as 'advance payment', can i convert 'advance payment' to 'capital repayment'? then i can withdraw from 'capital repayment' then.

this shd be workable right? but how to do this? go to the counter? or write in letter?

This post has been edited by christopheryam: Apr 11 2013, 07:26 PM

now a day, bank having 3 type of housing loan,which is traditional term loan , semi flexi, and full flexi .

1.)term loan- it is a normal traditional loan, no redraw facility, even u pay more it will be treat as a advance payment, unless u write in a letter to inform bank all the excess fund transfer into reduce principle.

2.) semi flexi - with redraw facility, all the excess amount will treat as advance payment also, but this advance payment bank will reduce ur principle until u withdraw out the money.it will help u save interest. although is a advance payment but bank assume u pay into principle also. Only advance payment are allow to withdraw money,the capital repayment even how much u excess pay ,it is not allow to withdraw out.

3.) full flexi- u will giving 2 account but is link tgt, one is loan account and one is current account, all the money u dumo into current account bank will treat as advance payment, bank assume u pay back the loan ,interest base on loan outstanding with daily rest ,but u have to pay installment into loan account on time also.


*** advance payment of term loan product is not going to help u reduce principle and save interest, only advance payment of semi flexi and full flexi will help u save interest( bcoz bank "assume" u pay back the capital amount)

only advance payment is allow to withdraw , once u write in letter to request transfer into capital repayment then is not allow to withdraw anymore.

This post has been edited by seng870825: Apr 11 2013, 07:57 PM

seng kor, u know what is happening or not? pls read la.

as far as I know, its quite contrary.
only capital payment is allow to withdraw.

I've never read similar case like your's.
But since your amount is huge, you can always negotiate or refinance with other bank.
Need a banker help for this q

Sorry if I have confused you.

The default payments are going to be Installment OR Advanced Payment

Meaning if you pay cash through cash deposit machine, use a cheque without writing any special instructions, bank-in using online payment, pretty much everything, the cash will be used to pay the INSTALLMENT, and if there is any balance, will be treated as ADVANCED PAYMENT (which can reduce the capital outstanding, but cannot withdraw)

Now, if you want to make a CAPITAL REPAYMENT (which is used to reduce the capital outstanding, and is withdrawable), you need to either pay at the counter, or drop a cheque into the cheque deposit machine with the special instructions written on it as: FOR CAPITAL REPAYMENT ONLY

I hope that clears everything up, sorry for the confusion caused.

1. Ah, well that is the thing, payments made as ADVANCED PAYMENT cannot be withdrawn. The advantage is that the outstanding capital is reduced (so your interest charges per month is lower, but the installment is still the same), and you do not need to manually pay your installments since your ADVANCED PAYMENTS will be "eaten" up as your installments.

If you are planning to withdraw it, you should do a CAPITAL REPAYMENT. The advantage would be that your outstanding capital is reduced, and the money is withdrawable. But you would still need to pay your installments okay? It will not automatically be eaten up by the installment payments.

I really really hope that this clears everything up

I understand very well on 'capital repayment' and 'advance payment', but i still strongly believe that there is a way to change from advance payment to capital repayment.

scenario, if i am a new to OCBC bank customer, taken a loan of RM1.5mil, ya i though OCBC loan is semi flexi, i go and write a cheque to dump in RM1 mil.

so OCBC will treat as 'advance payment'. After few month, i visit to the bank, hey i am new, i don know anything, the RM1 mil i need to withdraw..

OCBC definitely have a way to handle this right? to change 'advance payment' to 'capital repayment'.

sorry, dint read ur previous conversation ,OCBC bank semi flexi is difference with other bank, u r right , advance is not allow to withdraw, capital can.
paiseh

but as i know if u pay for extra payment of less than RM1000, it will be automatically treated as advance payment, but if u pay extra more than rm1000 will be treated as Capital Repayment instead.

installment rm1000, pay rm1500 then 500 is advance payment
installment rm1000, pay rm5000 then 4000 automatically treated as capital repayment.

That sounds about right. In normal circumstances, the advanced payment stays as that and not withdrawable. But if you speak with one of the officers, I am sure there must be a way to solve the issue.

Max 90K only bro. No choices but to ask your buyer folk out cash.

Hi Banker,

I got 2 case which is low cost flat with master tittle at rawang, 1 loan 65k and another 1 loan 75k, which banker is nearby that area can help me do the case?

Thanks
Regards

How old are the flats ya?

Bro, more than 10 years already.. >.< only CIMB can do only as i know..

Dear mortgage officers,
i 'm looking for someone who could provide me the current market value of property after i provide those necessary information. please provide your contact number here, thanks in advance.

Hi, would like to know what are the details that banks need to verify with employer? Will the bank divulge to the staff answering the call that we're applying for home loan etc?

Not to every applicant.

Yes, you are correct. When it is more than 10 years but still with Master title, it gets a little difficult.

Good luck with looking for the financiers!

Hello Sir,

You can call me at 016-7033992, and my name is Faiz.

Best if you can prepare the:
1. Address
2. House type (condo, terrace, semi-D, etc)
3. Land size (if any)
4. Built-up area (the floor size of the property)
5. Any renovations done to the house? Please include extensions, wardrobe, and kitchen cabinet if any.

It depends. For some banks, they would not give a phone interview if:

a. The pay slip shows the company is a Multinational Company (MNC)
b. Letter of employment and confirmation is given.

It really depends on your luck too, if they suspect something amiss, they will call. But who in the company has the time to layan them?

Thanks. Got a lot of kepoh OLs got time to layan and insist the bank to tell them more info instead.

I see. Well the bank has to do their due diligence. But when it has enough evidence that the client is not lying to work in the company he claim to be working for, then the bank dont have to waste their own time to call the client's employer.

Good luck with your loan search!

hi all,

I need HLBB, AMBANK, OCBC housing loan agent here...need it urgently, plz pm me ur contact number...thank you....
others any bank are welcome too...