Would like to check with Sifu here on mortgages loan. In case bank A is offering just 0.03% lower than bank B, but bank A has the following term “The minimum precribed rate applicable to the facilities shall not be less than 4% p.a. calculated on daily rest or such other minimum rate as may be prescribed by bank from time to time”. Question: Would you choose a bank which offered 0.03% higher rate, but without the above term? Currently d rate for Bank A is BR(4.03%)+0.44%=4.47% & Bank B is BR(3.77% + 0.73%= 4.5%.

This post has been edited by GreatFriday: Dec 9 2018, 02:14 AM

Thanks for your comment!

Hi Sifu, may I seek your advice concerning Hong Leong Mortgage Plus (https://www.hlb.com.my/en/personal-banking/loans/property-loan/mortgage-plus.html)?
Based on the info given, the credit balance in the assigned current account will automatically help to give us savings on interest.
I would like to clarify the followings：
(1)If we deposited certain amount to the assigned current account “during construction period”, will it help to give us saving on interest? (Reason for asking: Full Flexi from certain bank are Not allowed to offset progressive billing interest during construction period.)

(2)In case there is 70% capping on the principal amount.
Let say the total Loan amount: RM300K
70% of loan amount: RM210K
The property is still under construction
First disbursement from bank: RM30K
If we dump in excess money RM30K into the assigned current account, will bank offset RM30K or RM21K (70% x RM30K) from interest calculation?

(3) After deposited the excess money to the assigned current a/c, can we withdraw the excess money from the current account later (I mean before completion of building construction）？Any penalty?

Thanks in advance!

Thanks sifu!