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.

I believe the principle deduction still follow the original tenure deduction amortisation table. The excess money you put in is to offset further the interest charges the following month. If you want to shorten the loan tenure, you might need to go over the counter, and tell the banker, please deposit this xxx amount to reduce the principle.

At least this was what my CIMB banker explained to me last time when he tried to propose me this flexi package.

That was good info if it's true coz this is my 5th yr. I cannot deposit money to reduce my principle. I can only park the money into my current account. I just checked back my previous account statement. Aside from my first month is half the payment, I have a number of months with full payment of financial charges and no deduction on principle when I still have good balance in the account.

Now I'm ok. I should check why too.... Perhaps I'm gonna call the bank again tomolo

So when you said you park ur money into ur current account, does it reduce your interest?

yes.
if I park my money into the current account, my financial charges reduced. however bank uses 5 decimal if u deposit too little money you wont see much difference.

eg if monthly 2000
financial charges 1800
limit reduction 300

if u add few more thousand into the account
financial charges will be perhaps 1500.
limit reduction will then be 500

no matter how monthly will still be 2000. it's a matter of reducing more principal and interest together to pay off the loan faster.

Should u think 2000 a month is too much from rising interest. you can negotiate with the banker to have the amount reduced. but this is not ideal because you will take longer to pay off. unless ur not able to pay the risen interest.
Do ask for hidden charges for I heard from a friend they normally ask u to refinance. Ask for other alternative.

the later is true. no matter how still 2500
for my case is the 1300+1200.
interest been reduced n ur paying the principle more.

it shoukd b like this. That's my case.
also because it go by day rate. if u use the current account more the chances of seeing changes is low. Unless u park tge money there n not use. then the difference is bigger

Meaning to say:
If monthly installment 3000 (2500 + 500) / (interest + principle)

If I park X amount in, the interest will be reduce on daily basis by Principle - X

Hence, if I consistently pump in 3000, distribution should be = ((2500 - Y) + (500 + Z))

Where:
Y = new interest offset by excessive cash on principle reduction
Z = new principle reduction portion from lowered Y, from consistent 3000 installment payment

Is that correct?

i also use cimb flexi loan; but, i started 7 years ago. no need monthly fee.

and my principle reduction is fixed, interest rate is change according to the balance.

so. under the loan contract, i need to pay 1400.

if i pay as the contract schedule, 1000 finical charge (interest) 400 principle reduction.
I did dump all money to the account. the finical charge is 0 and the principle reduction is still 400. (not 1400)

Bingo, mine is like urs, except that I have monthly fee of RM 10

I understand it this way too according to your scenario.

So, to shorten the loan tenure, you have to walk over the counter to dump in the cash into your account to offset the principle.

Or there are 2 version of flexi loan available?

so, for shorten the pay back years... a) fix monthly payment, b) fix reduction limit... at the end is same.
after, says ten years, if you have money, you just pay back all, make a full settlement. both calculation is no different.


advantage in fix reduction limit.
the advantage in fix reduction limit is that you loan account can last longer. (without any cost).
says, if you have money for full loan, you put all in, then 0 interest, the reduction limit just some figures, does not matter.
but, you have the option to draw back the money anytime. if you need any urgent money, you can take it out. (better than make a new personal loan from bank)

disadvantage in fix reduction limit.
the disadvantage in fix reduction limit is that you cannot control the monthly payment.
says, at the beginning, you make a loan, and the fixed monthly payment is 2000. however, due to BLR rising, the financial cost will also rise, may be you need to pay 2500. For someone, they may not able to take out extra 500 for month.


in conclusion, fix reduction limit vs fixed monthly payment. for someone have extra money, fixed reduction limit is good. for someone have very tight monthly budget and no extra money, fixed monthly payment is better.

I have a monthly fee of rm10 too....
not sure of there is two types or not.
mine definately not fix limit reduction.

Any possibility that different years their package changes?
The thing is also not everyone can make full settlement in 10 years... unless the loan amount is small. or the person is very rich.
else monthly fix amount or limit reduction does play a huge role in reducing the paid amount at the end of the day

mine is like that

it seems you are still confused.

simple word, the TOTAL AMOUNT you put in the account for whole loan period, no matter fix limit reduction or fix monthly payment are SAME.

This post has been edited by realcyma: Jan 23 2014, 04:04 PM

which bank still offer refinance up to 35 years?

Hi,

do you receive notice from CIMB which is Current Account Flexi will convert to investment scheme type account?.

Existing account holder will force to change to investment scheme account type to enjoy flexi @ loan balance reducing. The only drawback is investment account NOT COVERED BY PIDM. Anything happens, solely risk on the customer.


OR, customer are giving options to convert to current normal account, BUT this will not entitle customer to enjoy flexi benefit anymore ( in others word, like convert to term loan)

Mine is loan with CIMB, Home Loan Flexi-i

not receiving any letter for flexi loan that without "Islamic"

aiyoo..is it only for islamik?..


anyone from cimb bankers can confirm?..thnks

currently cimb latest has offered me their latest plan, home flexi smart... any recommendation? my LO has been out

cimb flexihome loan is it the best?

everymonth charges rm10.60 for doing nothing.

how to actually reduce principal amount in current acount? im going to counter , and deposit of 1k into reducing principal, but the amount i still can withdraw out, how to make it really cut off my principal amount without let me withdraw the 1k, inorder to reduce interest?

This post has been edited by btan: Feb 15 2017, 05:52 PM

Hi,

From my loan statement, every month I can see there is one transaction that says "OD INTEREST CHARGE". And at the footer there is another value which is "LIMIT REDUCTION AMOUNT".

From what i understand the limit reduction amount is the amount that is deducted from my principal (loan amount)? Is my understanding correct?

If so, is the limit reduction amount part of the "OD INTEREST CHARGE"?

Is the RM1000 already included the RM100?

Meaning am I repaying RM1000 monthly. OR I am pay RM1100 monthly?



Thanks.

Wondering about this too. Anyone can share some insight?

from what I see in my account. I am paying RM1000+RM100.

But the RM100 is not showing up in the current account transaction history. Anyone is experiencing this too?

This post has been edited by Aimer247: Aug 7 2020, 03:00 PM

Yes, from I understood from the customer service. The total you are paying is RM1,100 and it's not shown on your online account transaction, it's only reflected at your monthly statement under the column of limit reduction.

Yes, from I understood from the customer service. The total you are paying is RM1,100 and it's not shown on your online account transaction, it's only reflected at your monthly statement under the column of limit reduction.

The RM 100 is capital repayment .

this will makes things confusing sometimes. Because I cant see the amount of capital repayment during the beginning of the month.
I have to backtrack and calculate.

for CIMB Home Flexi. Is it 70% or 100%?

And from what I read in the thread, if you have 200K loan and you put in 100K. You are charge 100K of interest.

My question is: what's the lock-in period my 100K needs to stay in the account for it to take into consideration? Is the interest calculated daily?
For example: got 4 weeks in a month, the first 2 weeks I put 100K, then the next 2 weeks 0. This way, I will pay less interest in comparison to 4 weeks of zero amount in the current account. Am I right to assume it actually works this way?

Hope someone can help explain. Thanks

Yes. This is how Cimb works. U just need to deduct the facility limit from the beginning and the ending.

Not sure what's the 70% or 100% you are referring to . Interest is calculated daily. The moment you have excess funds in the ac you pay less interest .
Don't have whatever lock in period .

Hi,

Can anyone help to clarify what is Available Balance under CIMB HOMEFLEXI SMART account?


Thank you.

Just think the whole capital repayment amount that is not showing on my current account dashboard a bit lame. it so hard to keep track of every cent in my account then. i keep on need to take out statement and calculate everything.