Hi. I have a maybank semi flexi home loan. I am now in my 4th year of repayment and I intend to make substantial advance payment to reduce the interest.

Must I leave any minimum of RM1,000 in the home loan account or I can pay full, leaving RM1 owing to the bank? Will the bank force me to fully settle the home loan if the amount oweing is too low?

I don't intend to fully settle now as I'd like to have the ability to withdraw in case of emergency.

Yeah. Thinking of doing the same but just worried bank will auto close the account if outstanding sum is lesser than some minimum treshold.

Any benefit from doing this (call bank to reduce principal sum)?

Cause at the moment, the extra payment is being parked under advance payment. Interest is already calculated on the outstanding principal sum less advance payment.

Benefit of keeping this arrangement is, can withdraw advance payment (with a fee) later if we want to.

I'm just paying the interest on the outstanding of RM1k. That's about RM3.50/month. It will add on to the RM1k outstanding.

Principal will be deducted from the money I've parked under the advance payment.