Need a housing loan of 400k or 500k over loan tenure of 15 years.. Can help provide two calculation tables?

1) Borrower info

Age: 35
No of borrower: 1
Single/joint borrower: Single
No of housing loan on hand: Nil

2) Income

A) Salary earner
Nett salary: RM 5600

3) monthly commitment

Housing loan: Nil
Hire purchase: Nil
Personal loan: Nil
ASB loan: Nil
PTPTN loan: Nil
Credit card: Nil
Share margin: Nil
Other term loan: Nil
OD: Nil

No rental income

Please help to suggest a suitable housing loan with the best rate. Does the 4.22% home loan comes with semi flexi feature? Thanks

This post has been edited by rainbird: Jan 13 2018, 04:30 PM

Which offers lower housing loan rate?

Don't quite understand what's the advantages of full flexi loan.

it will be advisable to hold at least a credit card otherwise margin finance will only be 80%

4.22% will be lowest for now

Full flexi loan you may benefit from daily cash rolling if you have extra money coming in from businesses and money going out to buy stocks. Since loan is calculated on daily rest, business people gain advantage to maximize the reduction on interest incurred on the housing loan by utilizing the current account daily.

However you will need to fork out RM10 monthly to maintain the current account. If you feel that you don't make daily or regular withdrawal then I would advise you to apply as semi flexi as you don't need to pay RM10 monthly for it and only be charged per withdrawal.

This post has been edited by lifebalance: Jan 13 2018, 04:35 PM

Thanks lifebalance.

I do have a credit card but no late payment before.

I beloved we are not eligible for Bank Islam Baiti Home Financing right?

I also saw Hong Leong housing loan at 3.78%. so good rate? Did I miss anything? Thanks

so far HLB don't have so low. If you got any info about this, you can share it here

Unfortunately I don't deal with Bank Islam for loans, you may call them up to find out.

Most of the banks offer semi flexi loan. Feel free to shop around.

Please find DSR range as below.

70% : RM 828,303.06
75% : RM 887,467.56
80% : RM 946,632.07
85% : RM 1,005,796.57

Different bank will have different calculation. I will need to check your income document, CCRIS and CTOS before finalize everything.

Usually, I'll advise customer to maximize their loan tenure up to 35 years for repayment. Reason is this will reduce your monthly commitment. If you are keen to early settle your housing loan, you may place more money to save interests!

Currently best rate in town is 4.22% from PBB, subject to bank's approval.

Full flexi is on withdrawal part.

As housing loan interest is on daily basis, people whom place more money can save interests. For instance, Mr A is a businessman and he has outstanding loan for 500k.

Today he put 100k into housing loan immediately interests will calculate at 400k on daily basis.

Does your credit card has any cash installment like Dial For Cash/Cash Lite/Cash on Call or Balance transfer plan

I don't handle any Bank Islam loan, perhaps you walk in to nearest branch for more info.

HLB still running promotional rate for first 24 months 4.15%, subsequent years 4.30%. However, subject to loan approval. Grab it while the promotion lasts.

Sorry , I saw wrongly. This 3.78% is not applicable to us I think.

https://www.hlisb.com.my/en/personal-i/cons...inancing-i.html

By dragging loan repayment period to 35 years means you will pay a lot of compounding interest. This is not my risk appetite. Besides, interest rate of savings account in Malaysia isn't that great anyway.

Noted on HPB 4.15% promo, but it's only for first 2 years. For 3rd year onwards, 4.3% kick in. I think PBB win hands down.

Thanks.

That's your opportunity cost. Either reduce loan tenure and have higher installment amount or use longer tenure to invest money where bringing much profitable investment to reduce your loan interest repayment.

PBB will revise interests from initial Effective Rate to 6.XX% should one missed one month monthly installment.

This is islamic loan

If you have extra money you can put onto the loan account to reduce the interest incurred over the 35 years. Your tenure will be shorten

Unless you don't mind to pay a higher installment for the shorter tenure provided it doesn't affect your loan eligibility then it's fine to take a shorter tenure

Yes correct, PBB will win hands down in the long term.

Every investment comes with a risk but thanks for your insight.

Does other banks do that like PBB?

Most banks will have the clause in the event you default on your loan installment which gives the bank the right to adjust your interest rate to a higher percentage.

Though such problem will not occur if you made standing instruction and making sure your bank account has sufficient amount to deduct the monthly installment.

Ok there is a 3 year lockdown period, what does it mean?

Assume I take the 15 year tenure, can I pay more per month to reduce the loan tenure for the PBB home loan?

Logical for then to do that.

Does PBB, HLB and AmBank offer convenient methods to deposit cash into the back accounts?

Lock in period means that if you settle earlier than 3 years, the bank will charge you a penalty for paying your loan off in full amount earlier

However you are allowed to make prepayment to reduce interest during the lock in period

Yes you can pay more while servicing the pbb loan for 15 years.

I read it as first 3 years cannot pump in more money to reduce loan amount. Not correct right?

What do you mean by prepayment?

Usually banks will only revise the interest rate if late payment shows up for more than 3 months. PBB is only bank will revise after 1 month.

You may set up standing instruction to deduct loan account from your savings/current account to avoid any late payment. Or place more deposit to your loan account to save more interests.

Lock in period 3 years means you can't fully off set the housing loan in 3 years or else you'll be penalize.

You'll save more interests and loan tenure eventually if you pay more per month however they have 70% capping on interests saving.

You will have a cap of 70% max prepayment you can put into your loan. Anything more than that is not entitled for any reduction on interest.

However some other banks don't impose such restriction

So you will need to choose either low interest rate or flexibility in prepayment

This post has been edited by lifebalance: Jan 14 2018, 12:09 PM

Does lock in 3 years means first 3 years?

You need to read the T&C whether it's applicable based on first or full disbursement