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

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

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

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