If I am not mistaken, all banks have started doing so already.

As far as I know, OCBC and Maybank already implemented this.

Hey guys

I am back.

Just ask me anything about OCBC home loan.

Q1. 35 years on outstanding ( redemption )

Q2. Loan on redemption still 180k
Cash out up to 10 years repayment subject to eligibility

Q3. Cost meaning ? Loan agreement ?
Or installments amount for both ?

Hi.

1. Yes, the new rule is applicable if you want to refinance from bank A to bank B

2. The GOOD news is that, you can still choose so the the repayment of the refinancing portion to be at 35-years (maximum tenure for housing loan). So that means if you have an outstanding balance of RM300k, and you need another 100k, the new loan of RM400k CAN be repaid in 35 years.

The BAD news is that, the 100k (the cash-out portion) will be calculated by the banks as if you are going to repay it in 10 years. What does this mean? Illustration below. From the bank's view, your monthly commitment would jump from RM460 a month to RM1026 a month! This would burst your Debt-service-ratio (DSR) for most people!

However, if you do get your loan approved, the repayment schedule for the loan will still based on the 35years tenure, for this example, your repayment for the RM100,000 cash-out portion would remain at RM460 a month and not RM1026 a month.

10-year tenure calculation


35-year tenure calculation


3. So if I get you right, your would be okay with this since the repayment would still be low, whether or not your loan would be approved is a whole different story.

For prop A's loan (RM100k, RM460k installment), the loan will appear as a TERM LOAN on the CCRIS. So if you need to refinance another house with bank B, depending on the bank, the prop A's TERM LOAN will be calculated just like a housing loan.
 
So in this case, the loan will be viewed as having RM460 monthly commitment.

All is based on nett income that is after you deduct the statutory deductions such as SOCSO, EPF, and TAX, but inclusive of all you income such as rentals, dividends, bonuses, allowance, etc. For all the banks, anyone with income lower than RM3000, DSR = 60%

Here is the list, DSR vs nett income

OCBC

60% <3k
80% 3k-8k
90% > 8k

ALLIANCE

60% <3k
70% 2-5k
80% 5-10k
85% 10-15k
90% 15k

AMBANK

60% <3k
70% >3k

MAYBANK

-same as ambank-

HLBB

60% <3k
85% >3k
Don't forget to contact me for any of your mortgage, insurances, and investment needs. I am as helpful to you as I am to everyone on this forum!~

Anyone here can share based on your experieced what is the best interest rate for mortgage currently? Is it 4.2%?

Dear propusers,

1. Get a lawyer or the lawyer that helped you proceed the loan before.  It eill be much easier.  Because they know the process of cos. 

The cost will depends on your property title,  and which bank.  It will be around 1k ++ or less,  depends on the complication such as caveat and etc.

2. You can also go to land office to proceed with it manually urself,  it will be cheaper as the price will be accordance with state land rules.

You need to eat learn and understand what docs to provide and which department to go through,  hence ppl Wil chose to consult a lawyer. 

Cheers

You can walk into branch and request for redemption balance and pay accordingly. Then appoint a bank's panel lawyer to execute the discharge of property from bank.

Dear propuserd,

1. The price is based on the details I wrote.  It's based on the lawyer I used and the price quoted by them,  it's around that range.  I'm just giving an example so that you know what's the range of the price.

As I said,  different bank will. Be quoted differently based on the complexity of the processes.

Yeah,  get a lawyer quote for this.  =)

Else just go land office get a quote how much to paid doing it yourself, and see whether it's worth your time to save the few hundreds ringgit. =)

Some banks like PBB will cap @ 70% on the total amount you can put into the current account, any extra from there will not incur any savings on your loan interest.

Some banks will also impose penalty or extra charges if you deposit more than the stipulated terms and condition within the LO.

So make sure you read your LO properly

No, the first 70% won't be penalise, only subsequently from 71% - 100% onward

below the provider. Both with similar facility / lockdown 3 years/ can do repayment instead progressive interest...

Bank A: 4.22% BR 3.52 + Spread 0.7
Bank B: 4.3% BR 3.69 + Spread 0.61

Where peoples said should look at Spread as it will not change hence it major impact after long term compared to BR...

What the view from members?

mine is semi flexi home loan, for the advance payment, does it reduce the interest?