for conventional home loan, need go to branch to appeal to pay the principal

you mean you don't have at least 3k in the bank account on a day to day basis?

For semi flexi, once you put in the 3k, you can't take out easily, but this 3k I'm talking about is when you get your pay... let's say 10k... and by month end you will still have around 3k for savings... and that's accumulative before you dump in to your semi-flexi to save your interest but I have already saved the interest since day 1.

And should I need to use this 3k, I do not need to go over the counter and wait few days and pay service charge to get it e.g. booking fees for a new condo... immediately without thinking, I can just write out the cheque without knowing whether I have enough balance in my normal acc after I transfer to my semi or not coz I definitely know I have my savings all there to touch anytime.

Another example - while waiting for my reno guy to complete the job, all my savings is in my full flexi account, it took him 3 months to complete the job and that 3 months I saved quite a few k on interest before I fully settle his bills.

This post has been edited by savagez: Jun 18 2014, 11:12 PM

thank

Make sense

I found that my so called friend, Bank Sales Manager illy advise me.... She said semi-flexi is the best for working employee like me

i also having the same dilemma here. getting my 1st house loan, but stucked between semi or flex.

some told me semi flex is better for working employee. some tell me full flexi is better.

however for full flexi, lets say every month installment rm2500 per month for 30 yrs. Then i kena lottery 200k and i wish to use the 200k to pay my principal. Does it means i am still paying rm2500 per month but my loan period is reduce? or i pay lesser every month, but still tied to 30 years loan?

Please advise

Installment amount will be same throughout the whole period regardless how many u put in the current account.

Your 200k is just use to offset the interest, not use to pay principle yet. So you still own the bank same amount of money by right even u put extra in current account.

This post has been edited by onnying88: Jun 19 2014, 02:12 PM

means there is no way to settle the loan earlier?

Loan amount RM100,000
Interest : 4.2%
Repayment : RM500

Repayment RM500 (Interest 4.2% = RM350 + Principle repayment : RM150)
next month loan outstanding : RM99,850

Pay RM50,000 extra

Conventional loan
outstanding = 49,850 (interest 175 + principle 325) you never see your RM50K

Semi-flexi
Outstanding RM99,850 - loan account RM50,000 (interest 175 + principle 325), you need to apply to get the RM50K back (different bank have different limit and charges)

Full-Flexi
Outstanding RM99,850 - loan account RM50,000 (interest 175 + principle 325), anytime to get the RM50K back

all 3 method will have same exact impact on interest and principle payment. only different is you want to take out your RM50K extra payment or not ? if you don't need to take out ... go conventional !!

for MOST people situation, semi flexi would be good enough since no maintenance cost for the current account.

I think 200K can go to the counter to offset the principal lo . NO ? CORRECT me if I m wrong ..

You can do so, but what's the point to lock your Rm200k, if you have flexi loan. Better option for semi flexi or conventional loan then.

Semi Flexi from Maybank, OCBC currently popular among borrowers

sorry for bumping into old topic.

i have a flexi account with Alliance. Given a cheque book.

when i login to alliance online, i saw two accounts.

one is current account. one is the home loan account.

the current account is tied to the home loan account.

every month, if no money is deposited into home loan account, it will be auto deducted from the current account.

my question is, which account should i dump my extra money in order to reduce interest?

thanks.

This post has been edited by temp2escape: Sep 30 2015, 06:10 PM

Should be the loan account.

loan acc for sure

what your mean by normal housing loan??

i think now housing loan only got flexi/ semi flexi.

still got 3rd option?

How can I withdraw money from full flexi current account. Can I use internet banking or bank card instead cheque book.

confused because i was reading this article.

http://learn.nab.com.au/100-offset-reduce-...-loan-interest/

Lol. Housing loan is divided into full flexi /semi flexi.
Full flexi or semi flexi is the methods you can use to pay your home loan.

No No No. holding a cheque book normally is Full Flexi type. For full flexi, u only need to deposit your extra into the current acc, then bank will auto offset the daily interest in loan acc

For Semi Flexi type, even if u pump more into the loan acc, it wont offset. U have to call the CS, to transfer the extra from SAVING into the LOAN for offset. The withdrawal for future will be a bit leceh and got charges.

Full flexi got rm 10 arrest fee per month but got free use of debit card and cheque book, semi flexi no charges only the debit card annually

u can use debit card, internet banking and cheque to withdraw. no charges applies.