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

rainbird
post Today, 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 Today, 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 Today, 10:28 AM

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Thanks lifebalance for the detailed replies.
ngph988
post Today, 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 Today, 11:39 AM

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Posts: 577

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From: Home of 'The Old Lady'


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.

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