now a day, bank having 3 type of housing loan,which is traditional term loan , semi flexi, and full flexi .

1.)term loan- it is a normal traditional loan, no redraw facility, even u pay more it will be treat as a advance payment, unless u write in a letter to inform bank all the excess fund transfer into reduce principle.

2.) semi flexi - with redraw facility, all the excess amount will treat as advance payment also, but this advance payment bank will reduce ur principle until u withdraw out the money.it will help u save interest. although is a advance payment but bank assume u pay into principle also. Only advance payment are allow to withdraw money,the capital repayment even how much u excess pay ,it is not allow to withdraw out.

3.) full flexi- u will giving 2 account but is link tgt, one is loan account and one is current account, all the money u dumo into current account bank will treat as advance payment, bank assume u pay back the loan ,interest base on loan outstanding with daily rest ,but u have to pay installment into loan account on time also.


*** advance payment of term loan product is not going to help u reduce principle and save interest, only advance payment of semi flexi and full flexi will help u save interest( bcoz bank "assume" u pay back the capital amount)

only advance payment is allow to withdraw , once u write in letter to request transfer into capital repayment then is not allow to withdraw anymore.

This post has been edited by seng870825: Apr 11 2013, 07:57 PM

sorry, dint read ur previous conversation ,OCBC bank semi flexi is difference with other bank, u r right , advance is not allow to withdraw, capital can.
paiseh

but as i know if u pay for extra payment of less than RM1000, it will be automatically treated as advance payment, but if u pay extra more than rm1000 will be treated as Capital Repayment instead.

installment rm1000, pay rm1500 then 500 is advance payment
installment rm1000, pay rm5000 then 4000 automatically treated as capital repayment.