Hi guys,

Anyone here knows how does this home loan works?anyone here is under this loan package by CIMB...

Thanks in advance

CW

Its full flexi..hv to open current acc...rm10 maintanence fee..no need to notify bank for prepayment..no limit for prepayment..interest based on daily rest..

How about the installment?i hav actually taken up this loan package...and already paying my monthly installment...but I noticed that I have paid my installment and my loan amount is still the same...my understanding is tat as long as we hav started paying,the loan amount (principle)should go down...but it stays the same...this is actually just my 2nd month paying the installment...but I believe even thou a big portion of it goes to interest,my loan amount should still reduce a lil rite?

exactly the same amount? It should reduce a little by right.

Your overdraft limit in your cimbclick should reduce...

hmmm...but my OD limit is still the same amount which is the amount of my initial loan...i dont see any reduction at all...if i do not understand it wrongly from the statement, it seems like even after paying a few years, the OD limit still doesnt reduce...not sure if im reading the statement wrongly or not...

anyone here is using this loan from CIMB?i dont wan to jump into conclusion tat the loan is actually only sucking my money...would prefer if can get some feedback from ppl here before i go n complain or ask CIMB

outstanding = OD limit?

I am not sure what kind of statement you get. In my home flexi statement, it is very clear. First table mentioned type of your loan, account no, facility limit and balance. The balance value is the one changing depends on how much you pay.
Then another table for payments.
Then, it stated how much is amount deducted from the principle amount as the limit reduction amount..

could u upload ur statement ???

yup...thats wat i believe i should b seeing...coz i did hav a look at my sis's home loan...her's is from HSBC...its clearly stated as wat u mentioned..but for my loan i get to see my loan type, account number,facility limit (which is the OD) and balance...the balance for my case is the the loan amount minus off the money i have in my current account...but i do not see the amount which i still owe the bank which is the principle...

May i know does the monthly repayment will be deducted shows as OD interest in eStatement? Can anyone confirm here?

is your property still in construction, and did not get CF yet?

Mine under con...only amount paid to date, total outstanding n profit outstanding is changing whenever payment was made...

Any way to track interest you've offset or hibah for islamic they called it ?

There is a new limit & limit reduction amount towards the end of statement. It refers to your OD limit...

The balance amount you see, which is: the total loan amount, plus what you deposited, minus interest paid, minus maintenance fees (rm10). That is the exact amount you owe the bank. It will keep on reducing, as long as you have at least met the minimum installments.
The interest deducted each month, is calculated based on this balance (minus deposits plus withdrawals within the month, accrued with daily interest)

The OD limit that you are talking about, I believe on the statement it's called "Facility limit". That amount will never reduce, unless you missed your payments. If you have paid more than your minimum installments, that limit will actually increase. Do keep in mind that this is not the amount you owe the bank.

For example:
1) If your current Balance is -RM500,000, and you have been paying the exact installment amount every month, no more, no less. Then your Facility Limit will be your loan amount. I believe your Available Balance should say RM0
2) If your current Balance is -RM500,000, and you have have over paid RM10,000. Then your Facility Limit is not RM510,000. And your Available Balance should be the extra cash you have, ie RM10,000.

However, I still have no idea what does "Limit Reduction Amount" in the statement mean. It is definitely not the principal repaid.

Hi i am a banker

Yours one is under islamic or conventional

If islamic i suppose when its still at progressive release, whatever amount u dump in cannot serve as prepayment

Only have to wait until full release eg 97.5 percent then only function

For conventional i thi k u can just see the effect there

i have cimb home flexi.
i had the same worries as you before. i went round and round the bank asking for answers. Customer service of not much help.
If you need additional clarification, you need to talk to a mortgage officer in HQ.

Facility limit is (current account balance + loan amount) Exclude interest.

Balance is the borrowed amount exclude interest.

limit reduction is deducting the principal

financial charges is the interest served which you won't see any difference from the loan amount.
Only limit reduction will be minus from the column call 'balance' at the top.

financial charges + limit reduction= is the same figure every month.

If you have more money in the account financial charges goes down and limit reduction goes up.
means interest drop and borrowed amount reduced.

Hope this information helps you.

This post has been edited by EMY: Jan 17 2014, 05:54 PM

Hey, I have CIMB Home Flexi too. Went through the same painful ordeal as you did to get some clarification on the statement, and only now beginning to make some sense with the figures.

However, my statement is different from yours. My figure every month fluctuates, and although my financial charges (interest) is reduced when I deposit more cash, my principal payment is not increased, it's still around the same figure (plus minus 10 - 100 bucks each month).

In other words, when I deposit more cash to offset the interest, what I expected was:
less interest + more principal paid = same figure from amortization schedule based on full amount
instead what I got was
less interest + same principal paid = total figure reduced

Looks kinda weird?

Correct me if I'm wrong, as I would like to understand further on this flexi package.

When you deposit more cash, it offset the interest but principal reduction still follow original tenure amount, that's correct right? Unless you go to the counter and say you want to have xxx amount of money to reduce the principle directly, then your tenure will be shortened.

Think of another way, if loan 500k and put in 500k, so you don't have to service interest but the loan tenure is still follow the original package with the principle deduction the same. Unless you tell the bank to settle your loan with that 500k, else how could the bank reduce more principe when you can withdraw the money anytime?

Please correct me if I'm wrong. Try to understand and learn here.

Actually I'm also not too sure, co's the main idea of having a full flexi loan is to be able to reduce your loan tenure if u have excess cash. So I actually thought that:

Assuming I have a loan of RM 600k and my monthly repayment is RM 2500 (500 principal + 2000 interest)
If I put in RM 200k cash, my interest maybe reduce to RM 1200.

End result is I still pay RM 2500, but instead of (500 principal + 2000 interest), the distribution will be (1300 principal + 1200 interest). Which in this case means I will be able to settle the loan earlier than the original tenure.

Seems like is not like this.