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 Mortgage Loan Package Inquiries v2, Loan agents pls read the 1st post!

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ngph988
post Jan 15 2018, 10:47 AM

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QUOTE(rainbird @ Jan 15 2018, 01:07 AM)
Does lock in 3 years means first 3 years?
*
Some banks applied on first disbursement, some on full disbursement.
rainbird
post Jan 15 2018, 11:47 AM

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QUOTE(lifebalance @ Jan 15 2018, 09:14 AM)
You need to read the T&C whether it's applicable based on first or full disbursement
*



Which one more wu hua?

First disbursement means first payment from bank to property developer, which can be partial amount of the loan?

Full disbursement means full loan amount?

This post has been edited by rainbird: Jan 15 2018, 11:47 AM
lifebalance
post Jan 15 2018, 11:49 AM

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QUOTE(rainbird @ Jan 15 2018, 11:47 AM)
Which one more wu hua?

First disbursement means first payment from bank to property developer, which can be partial amount of the loan?

Full disbursement means full loan amount?
*
Yes, you're right, first disbursement means the first payment the developer received.

Where as full disbursement will mean after completion of the property, fully paid to developer, only start counting the lock in period.

Of course, you would want your lock in to start counting from First disbursement instead of Full disbursement so you can let go of the loan earlier if you intend to pay off or sell the property.
rainbird
post Jan 15 2018, 11:50 AM

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QUOTE(ngph988 @ Jan 14 2018, 11:05 AM)
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.
*
Cap at 70% of principal plus total interests right?
rainbird
post Jan 15 2018, 11:50 AM

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QUOTE(lifebalance @ Jan 14 2018, 11:34 AM)
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
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Can share which bank? Thanks.
lifebalance
post Jan 15 2018, 11:51 AM

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QUOTE(rainbird @ Jan 15 2018, 11:50 AM)
Cap at 70% of principal plus total interests right?
*
Principle amount only.

QUOTE(rainbird @ Jan 15 2018, 11:50 AM)
Can share which bank? Thanks.
*
Any other banks beside PBB
rainbird
post Jan 15 2018, 12:02 PM

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QUOTE(lifebalance @ Jan 15 2018, 11:49 AM)
Yes, you're right, first disbursement means the first payment the developer received.

Where as full disbursement will mean after completion of the property, fully paid to developer, only start counting the lock in period.

Of course, you would want your lock in to start counting from First disbursement instead of Full disbursement so you can let go of the loan earlier if you intend to pay off or sell the property.
*

Thanks. This is important.

Any idea which bank 3 year lock in is based on first disbursement?
rainbird
post Jan 15 2018, 12:03 PM

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QUOTE(lifebalance @ Jan 15 2018, 11:51 AM)
Principle amount only.
Any other banks beside PBB
*
No wonder PBB can offer such low interest rate. Haha.
lifebalance
post Jan 15 2018, 12:05 PM

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QUOTE(rainbird @ Jan 15 2018, 12:02 PM)
Thanks. This is important.

Any idea which bank 3 year lock in is based on first disbursement?
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If not mistaken most offers nowadays give base on First Disbursement, so my advise is to read the Letter Offer on the lock in period clause.

QUOTE(rainbird @ Jan 15 2018, 12:03 PM)
No wonder PBB can offer such low interest rate. Haha.
*
You win some , you lose some biggrin.gif
ngph988
post Jan 15 2018, 12:49 PM

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QUOTE(rainbird @ Jan 15 2018, 11:47 AM)
Which one more wu hua?

First disbursement means first payment from bank to property developer, which can be partial amount of the loan?

Full disbursement means full loan amount?
*
QUOTE(rainbird @ Jan 15 2018, 11:50 AM)
Cap at 70% of principal plus total interests right?
*
QUOTE(rainbird @ Jan 15 2018, 11:50 AM)
Can share which bank? Thanks.
*
QUOTE(rainbird @ Jan 15 2018, 12:02 PM)
Thanks. This is important.

Any idea which bank 3 year lock in is based on first disbursement?
*
QUOTE(rainbird @ Jan 15 2018, 12:03 PM)
No wonder PBB can offer such low interest rate. Haha.
*
First disbursement is when bank make first payment to developer/vendor. You will have advantage if lock in period starts from first disbursement as you will gain profit earlier should you sell the property in near future.

both PBB and CIMB will have interests savings capped at 70%. CIMB will impose a monthly charges of RM 40 + 6% GST if you pay extra more than 70% of your total outstanding, only applicable to full flexi loan.

Can't really recall which bank starts lock in period from first disbursement, if not mistaken is HLB. I'll need check further and revert this.

There's a pros and cons for each bank. You can't find a perfect bank in this market.
rainbird
post Jan 16 2018, 12:25 AM

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QUOTE(ngph988 @ Jan 15 2018, 12:49 PM)
First disbursement is when bank make first payment to developer/vendor.  You will have advantage if lock in period starts from first disbursement as you will gain profit earlier should you sell the property in near future.

both PBB and CIMB will have interests savings capped at 70%. CIMB will impose a monthly charges of RM 40 + 6% GST if you pay extra more than 70% of your total outstanding, only applicable to full flexi loan.

Can't really recall which bank starts lock in period from first disbursement, if not mistaken is HLB. I'll need check further and revert this.

There's a pros and cons for each bank. You can't find a perfect bank in this market.
*
Need an assumption of a scenario
Public Bank Housing loan of 500,000 @ 4.22% for 10 years ;3 years lock in period starts from first disbursement

Assume, housing loan kicks in on bank's first disbursement of 100,000 to developer.
3 year lock in period starts immediately?

For first 3 years :
a) monthly installment is 4.22% of 500,000 or 100,000?
b) Can i pay extra into monthly installment during this 3 year lock in period?

Don't quite understand this statement "you will gain profit earlier should you sell the property in near future.
".

Thanks.
ngph988
post Jan 16 2018, 12:53 AM

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QUOTE(rainbird @ Jan 16 2018, 12:25 AM)
Need an assumption of a scenario
Public Bank Housing loan of 500,000 @ 4.22% for 10 years ;3 years lock in period starts from first disbursement

Assume, housing loan kicks in on bank's first disbursement of 100,000 to developer.
3 year lock in period starts immediately?

For first 3 years :
a) monthly installment is 4.22% of 500,000 or 100,000?
b) Can i pay extra into monthly installment during this 3 year lock in period?

Don't quite understand this statement "you will gain profit earlier should you sell the property in near future.
".

Thanks.
*
For under construction, usually you will pay progressive interest until project fully completed. Some bank like HLB and RHB having restriction to redraw the extra payment during construction period.

Do ask public bank officer to provide you a thorough insight on extra payment, especially on redraw facility
rainbird
post Jan 16 2018, 01:01 AM

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QUOTE(ngph988 @ Jan 16 2018, 12:53 AM)
For under construction, usually you will pay progressive interest until project fully completed. Some bank like HLB and RHB having restriction to redraw the extra payment during construction period.

Do ask public bank officer to provide you a thorough insight on extra payment, especially on redraw facility
*
thanks for the advice though i don't understand what's extra payment and redraw facility. Chim.
rainbird
post Jan 16 2018, 09:44 AM

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Any connected on a housing loan bars which is pegged to the Mortgage Lending Rate, a benchmark interest rate for mortgage lending?
lifebalance
post Jan 16 2018, 10:21 AM

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QUOTE(rainbird @ Jan 16 2018, 12:25 AM)
Need an assumption of a scenario
Public Bank Housing loan of 500,000 @ 4.22% for 10 years ;3 years lock in period starts from first disbursement

Assume, housing loan kicks in on bank's first disbursement of 100,000 to developer.
3 year lock in period starts immediately?

For first 3 years :
a) monthly installment is 4.22% of 500,000 or 100,000?
b) Can i pay extra into monthly installment during this 3 year lock in period?

Don't quite understand this statement "you will gain profit earlier should you sell the property in near future.
".

Thanks.
*
Yes, in this case, first disbursement is on the first day 100,000 is paid to developer.

QUOTE
Need an assumption of a scenario
Public Bank Housing loan of 500,000 @ 4.22% for 10 years ;3 years lock in period starts from first disbursement


a) It will be 4.22% of 100,000 and depends on the stages of disbursement.
b) You will need to check if PBB allows you do so while serving progressive interest

QUOTE
For first 3 years :
a) monthly installment is 4.22% of 500,000 or 100,000?
b) Can i pay extra into monthly installment during this 3 year lock in period?

Don't quite understand this statement "you will gain profit earlier should you sell the property in near future.


if the clause is upon first disbursement then 3 years lock in kick in upon 100,000 paid out

QUOTE
Assume, housing loan kicks in on bank's first disbursement of 100,000 to developer.
3 year lock in period starts immediately?



QUOTE(rainbird @ Jan 16 2018, 01:01 AM)
thanks for the advice though i don't understand what's extra payment and redraw facility. Chim.
*
With regards on extra payment, loan is on daily rest, which means anytime you make extra payment to your housing loan, you get to save on the housing loan interest immediately.

There are 2 types of loan facility

Semi Flexi
- Normally comes with withdrawal fee
- No need to maintain current account
- Will need to wait longer for your money to return back to your savings account
- No monthly fees
- Usually recommended for people who are not business owner 

Full Flexi
- Normally doesn't come with withdrawal fees
- Need to maintain current caccount
- Don't need to wait for your money to go back to your current account to make withdrawal
- Monthly fee to maintain your current account
- Usually recommended for people who runs a business as money comes in from businesses, it will save interest on the daily rest. And the business owner can use that money again a few days or weeks later for his business.

QUOTE(rainbird @ Jan 16 2018, 09:44 AM)
Any connected on a housing loan bars which is pegged to the Mortgage Lending Rate, a benchmark interest rate for mortgage lending?
*
If you're referring to BLR, no housing loan runs on BLR now.
rainbird
post Jan 16 2018, 10:28 AM

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Thanks lifebalance for the detailed replies.
ngph988
post Jan 16 2018, 11:20 AM

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QUOTE(rainbird @ Jan 16 2018, 01:01 AM)
thanks for the advice though i don't understand what's extra payment and redraw facility. Chim.
*
Under conventional loan, there are two types of facility, Semi Flexi & Full Flexi loan

Full Flexi:
1) Loan Account will be linked to Current Account/Saving Account with cheque book (optional).
2) Interest is based on current outstanding minus any amount payable to the loan. (E.g : Current O/S - credited amount x Interest payable/100% / 365 days) Some bank practice 360 days instead.
3) Account opening fees at RM 200 + 6% GST.
4) Account maintenance fees at RM 10 +6% GST.
5) Withdrawal/Deposit of money can be done through over the counter, cheque, ATM or online banking.

Semi Flexi :
1) Bank will request customer to setup a Saving Account link to Loan Account through Standing Instruction (SI).
2) Prepayment or capital payment can be done.
3) Prepayment, placing future repayment to Loan Account and it has to be multiple of your monthly repayment. This will not revoke interests saving on Loan Account.
4) Capital repayment, placing extra payment to Loan Account to reduce principal. Some bank will require you walk in branch to fill up service form.
5) Withdrawal/Deposit of money can be done through over the counter or cheque.

Take note that Semi flexi will need to inform bank to avoid dispute with bank on capital repayment as bank system unable to identify the extra payment as "advance payment" - park money to deduct future installment or "capital repayment" - to reduce loan interests. And also on redraw facility, bank will take some time to withdraw money as the money is place under loan account.

QUOTE(rainbird @ Jan 16 2018, 09:44 AM)
Any connected on a housing loan bars which is pegged to the Mortgage Lending Rate, a benchmark interest rate for mortgage lending?
*
You may Google search the BR (Base rate) across the bank's financial report. They will indicate Base Rate and Margin to be Effective Rate. This shows transparency to public and let public to do wise decision.


rainbird
post Jan 16 2018, 11:39 AM

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QUOTE(ngph988 @ Jan 16 2018, 11:20 AM)
Under conventional loan, there are two types of facility, Semi Flexi & Full Flexi loan

Full Flexi:
1) Loan Account will be linked to Current Account/Saving Account with cheque book (optional).
2) Interest is based on current outstanding minus any amount payable to the loan. (E.g : Current O/S - credited amount x Interest payable/100% / 365 days) Some bank practice 360 days instead.
3) Account opening fees at RM 200 + 6% GST.
4) Account maintenance fees at RM 10 +6% GST.
5) Withdrawal/Deposit of money can be done through over the counter, cheque, ATM or online banking.

Semi Flexi :
1) Bank will request customer to setup a Saving Account link to Loan Account through Standing Instruction (SI).
2) Prepayment or capital payment can be done.
3) Prepayment, placing future repayment to Loan Account and it has to be multiple of your monthly repayment. This will not revoke interests saving on Loan Account.
4) Capital repayment, placing extra payment to Loan Account to reduce principal. Some bank will require you walk in branch to fill up service form.
5) Withdrawal/Deposit of money can be done through over the counter or cheque.

Take note that Semi flexi will need to inform bank to avoid dispute with bank on capital repayment as bank system unable to identify the extra payment as "advance payment" - park money to deduct future installment or "capital repayment" - to reduce loan interests. And also on redraw facility, bank will take some time to withdraw money as the money is place under loan account.
You may Google search the BR (Base rate) across the bank's financial report. They will indicate Base Rate and Margin to be Effective Rate. This shows transparency to public and let public to do wise decision.
*
Thanks for the tips Paul.
ngph988
post Jan 16 2018, 08:24 PM

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QUOTE(rainbird @ Jan 16 2018, 11:39 AM)
Thanks for the tips Paul.
*
No problem, feel free to ask biggrin.gif
unigal
post Jan 17 2018, 11:14 AM

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Dear Sifu,

Need some advices.

Currently, I am still serving my first house's loan payment which is not much left, about 30K. I am planning to buy a second property which cost about 750K max. I don't intend to settle my first housing loan because part of the money I will use to buy the 2nd property. If I do this, will this have any impacts to my loan application? Any other good method that you can suggest? Kindly advice. Thanks.



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