Hi All,

Jus a friendly intro! I'm ur new neighbour, Luzento. Looking fwd to meet u guys in near future : )

Hi guys!

Thx for d welcome notes! Btw, anyone familiar with SEMENYIH? Any nice famous restaurant around dat area? I'm food kaki : )

Guess I must go n try d ikan bakar liou : ) I driv small car onli..if not safe, I jalan kaki go there : )

I'm newbie with this billing things during the construction period.. Izzit correct that we only serve the interest based on the staggered drawdown during the construction period? Which mean that the principal amount of loan will only start to reduce once the final drawdown or finish payment by the bank to developer?

If yes, I'm thinking of starting to pay my mthly instalment once I received my 1st billing. I think this can reduced the total interest of my loan caused I start reducing the loan principal now.

Kindly advised all tk and tkj! Izzit a good move to start paying d instalment now? Banker said I just need to write a letter to inform them.

Yup! It is a semi-flexi loan...Correct me if I'm wrong..

Option 1,

If I commencing my mthly instalment during the progressive release/disbursement, interest charged on me are solely based on the loan release amount at that time.

For example only;

Loan amount : RM 300k
Instalment : RM 1600
Disbursed : RM 60k / 1st disbursement
Interest rate: 4% pa

Interest is charged based on the release amount, as above RM 60k only. Which means I'm required to pay:-

[(amount disbursed x interest rate)/365 x (days of the month)]
=[(RM 60k x 4%)/365 x 31]
=RM 203.84

So I'm required to make the payment of interest RM 203.84 a month.

If I opt to start instalment during the progressive release, RM 203.84 from RM 1600 will goes to interest, and the balance will go to the principal reduction. By doing this, my balance principal will be lesser when banker complete releasing the RM300k to developer.

OR, for Option 2,

I make the payment of interest RM203.84 a month based on the loan release amount. Any additional cash that I have I will dump into my account to save interest. By doing this, my balance principal will be lesser when I start to serve my mthly instalment. The question is, am I allowed to dump cash into my account during the construction period to reduce my principal? If yes, doesn't option 1 and 2 are similar in term of reducing the principal? However, I c d benefit of option 2 is I can withdraw money from my account in case of any emergency and I can choose how much money I want to dump into the account instead of fixed amount of mthly instalment.

Thanks tk and tkj for any advice!

Hi Sam bro!

Thx for your details explanation

Now I will only start my mthly instalment upon final disbursement by the bank to developer. In d mean time, I will dump any extra cash into my account to earn more interest during the construction period.

Thanks bro