Yes and permanent disability

Hi, im buying a new house double storey terrace under construction, already signed SPA & LA.
Usually when our copy for SPA & LA lawyer will give back to us from signed SPA date?

In addition, im loan with Maybank, after VP i need to buy fire insurance myself or Maybank buy for me then charge me?

Thanks

For non flexi loan, IMHO, the bank will only deduct the so called agreed month loan repayment which is in your Offer Letter from your Savings Account.

The thing about making additional payment for non flexi loan is how the banks treat such payments.

99% unless you specify as additional payment to reduce principal loan, the banks will treat it as prepayment which does not reduce the Principal amount or help to reduce interest.

So, for non flexi, please clarify additional payment mechanism.

The copy of stamped SPA and Loan Agreement will be given to you after the loan has been disbursed. (First disbursement)

For Fire insurance. Bank will buy and charge you cos

a) want to sell you their panel insurance

b) in case u did not buy or forget. Too risky.

Personal preference. Apart from the benefits mentioned above, there's also a ceiling rate/cap on the effective interest rate. Alliance used to offer Islamic full flexi loan which ABMB waived the account setup fee and also monthly fee but I not sure whether they are still offering this.


YES, and also as mentioned by ims2628, permanent disability.

Yes, my mistake for didn't make it clear. For non flexi/standard term loan, there's no advance payment account. So no point paying extra as the additional payment made will be in the prepayment, unless you are going oversea for a long duration and wanna do prepayment. Reduction of principal have to be made over the counter.

I have been told by my banker that MRTA protection is still valid even after the property has been sold. You still get the sum insured if you die/TPD, regardless of what happens to the property. As in the MRTA insures the person, and not the property.

I thought MRTA will cease to be valid, although you get back a surrender value, after you sold the property? Sifus please clarify

Thanks

Wrong info mrta once refinance or sold its no longer valid. But for mlta yes.

Thanks.. I wondered if its a new type of MRTA, or if the banker herself confused MLTA with MRTA. The premium is to be paid in one lump sum upfront (premium is 3.7% of covered value, cover 28yrs), so it should be MRTA.

Anyway, the MRTA details should be stated in the loan offer letter right?

If mrta confirm can't carry forward to next new property and if mrta there's no cash value. Yes mrta only charge once which is one lump sum. For mlta you have to pay yearly, quarterly, or monthly

Thanks.

The amount to insure fixed by panel insurance? can we change the amount?
They follow the market price of the house?

Actually my loan already disbursed and I got the house key already, but my solicitor still havent pass me my loan agreement, she said the title is still in land office? Is this normal?

Currently, fire insurance is based on value of house / loan amount and is fixed based on tarrifs set by Bank Negara Malaysia.

This means that it is same regardless which insurance companies you buy from.

Howeve this is expected to change in about 2 yrs time as bank Negara will allow insurance companies to price the premium for fire insurance and also motor insurance.

But you may not be able to change if under Housing Loan, esp for landed

For highrise. The JMB will buy insurance for the whole building. So you can request that the bank don't buy separate insurance


But do you know that actual payout for fire insurance is only to cover the construction cost of the house and exclude land value.


So for landed. If the house / loan is worth 800k and the whole house burn down. The insurance only pay say 600k to construct back the house.

So premium for additional 200k is pure waste


roystevenung another classical ripoff by insurance industry.

This post has been edited by cfa28: Jun 18 2015, 03:51 PM

Thanks for your details explanation

Thanks. Makes me wonder if it would be better to insure the whole house instead.

Thanks for the clarification above, makes much more sense. Does one need to instruct everytime or just opt for it? Are there additional charges involved?

For non flexi loans, additional payment must be made OTC - over the counter and must specify as additional payment to reduce Principal amount.

Bank will make it as inconvenient as possible to earn more interest.

No charges, save for your own time and other cost to go.to the bank to make the additional payment.

For flexible loan, no need. Just deposit additional payment in.the current account to reduce the interest charges.

But flexi loan comes with monthly charges.

Need to choose at point of applications whether you want non flexi loan or flexi loan.

Once approved, cannot change.

This post has been edited by cfa28: Jun 18 2015, 06:21 PM

Not all flexi come with monthly charges ya semi flexi there's no monthly charges except full flexi.

Semi flexi, additional payment must be made via OTC right

Now most standard loans are semi flexi allow for additional payment any time without notice but must be via OTC

To withdraw excess payment, also via OTC with charges and other T&C

yes such loans no monthly fees

Fully flexible with Current Acccout features,.Can make additional payment anytime, withdraw excess payment anytime has monthly charges.

Sorry to say that I disagree that "no monthly charges except full flexi". It really depends on the product features of the bank. Even semi-flexi or full flexi, each bank may have diff treatment/ charges.

This post has been edited by Jasoncat: Jun 18 2015, 09:34 PM

All bank semi flexi is without monthly charges, but there's a withdrawal charge when withdraw money. I'm very sure on this. And for full flexi there's one bank without any charge which is rhb there's no monthly charges and no setup fees for the full flexi loan.

One of the reasons why I raised it is because I personally hold one flexi loan account which has no monthly charges (and other incidental charges / fee). So it's incorrect to draw conclusion "no monthly charges except full flexi".

Bank products have keep on changing its features, fees & charges due to stiff competition. I will never dare to say with 100% certainty that certain product feature is commonly shared by all the banks unless it is a regulatory requirement.