hahaha... that's the cynical AIA Life Balance to you...

and He has a very high standard.

Dear

1. To finance MOT, none of the bank could... but only with the right negotiations with the lawyer, it could be done well.

Cheers

Dear

1. It's always best practice to have the highest income lowest debt applicant on as the main applicants. This will affects the scoring of the total profile of borrowers.

Cheersw

Dear

Good luck

Dear

Max loan is based on total income and commitment combined!

DSR can't be increased manually, each bank has different DSR and will have to find the rightful bank to your profile.



1. Based on the details given by you, Your max loan eligibility for each bank is as follow:
Bank Loan amount
A*BANK 759,829.11
H*NG LE*NG 921,783.24
M*YBANK 713,155.26
*CBC 691,991.24
R*B 887,083.26
U*B 691,991.24
C*MB 823,885.93
AFF*N -
PB* 823,885.93
HSB* 691,991.24
Things to take note of based onmy max loan calculation
" -The best bank to get the highest loan would be HLBB . However, each bank has it's own ball game
Different bank will calculate your income and debt accordingly based on each bank's different policy. Hence,
I would need to do a due diligence on your profile before suggesting the best bank to proceed with."

" - I would need to check you CCRIS, CTOS and income documentation before giving you any assurance.

If everything goes fine, 90% shouldn't be a problem for you."

Cheers

Dear

No problem, hope my answers help. It makes me happy when netizen problem is solved.

Restructuring debt is never a good idea. After u restructure a debt, ur ccris will show status stating u restructured ur debt. Which to bank is a risk factor. It will reduce ur scoring or rejecting ur loan. But still have to look at ur overall profile first.

Cheers

Dear, Bogikelvin,

1. Most of the banks required you to serve interest during progressive payment period, certain bank give you option interest+capital option too, but it really depends.

2. You have to read the banks Letter offer of fine line.

During progressive period payment, interest depends on the schedule of payment
Schedule of payment


3. You will be paying interest to them solely, as a way for bank to increase their cash flow etc.

4. Usually after construction reached 80-90%, you can write letter or call the service center, and request the bank to allow you start the actual installment to pay back the capital

DO be AWARE!!! >>>>

Most of the banks fine print is , if you pay more during the progressive interest period, the extra cash will not pay towards the capital, and it will only tilted towards advanced payment cash. Means cash stuck for future interest payment.

Do be AWARE!!!>>>>>

Cheers though

Wow...

Yes, checking the clause is important..

Not all banks allow you to pay towards capital during progressive interest period...........

Most of the bank doesn't allow and only some banks allowed...

I mean, it's great that you provide info for the netizen... but do clarify correctly in terms the method, as some misinformation might cause some angry customer...

Cheers man




Dear,
1. NO banks would allow you to pay capital during progressive interest

2. Certain,,... just certain bank allow syou to pay capital while progressive interest, and it comes with certain clauses you must adhere..

Must be specially applied.

3. It's very misleading for someone informing that you can pay capital just by paying extra during progressive interest period..... THAT'S MISLEADING...

4. I have throughly explain to you how it works, on my previous first post.

Cheers

This post has been edited by Madgeniusfigo: Sep 13 2017, 05:49 PM

Dear

Check
1. loan tenure
2. ur name and IC (sometimes they can get it wrong..)
3.Property details address
4. Loan amount
5. base rate + interest rate
6. insurance
7. loan tenure


ADDITIONAL:

a) Query the penalty charges. If any late payment involve in the future, how much will the bank increase the rate and will the rate be reversible

b) Whether the loan interest is daily rest or montly rest

c) additional fees incurred 

d) Lock in period (for under construction property)

whether charges of penalty effective from 3 years of 1st disbursement or 3 years of full disbursement.
For our under construction property it is important as:
"1st disbursement" happens in 2015 = 2015+3 years
"full disbursement"happens in 2017= 2017+3 years

see the difference? full disbursement actually takes 3+3 years means 6 years before penalty is voided.

e) make sure all the stipulated charges you listed are the same in the letter offer.

f) how penalty charges are charged, on the outstanding amount or the loan limit.
"loan limit" is the amount loan you borrowed from bank since day1.

g) Tried calling the bank service centre and see if they pick up and provide good quality service.

Cheers

This post has been edited by Madgeniusfigo: Sep 14 2017, 10:58 AM

；)


Dear,

1. Yes, they do have such package, refund you all the payment if developer bankrupt. Yes the islamic loan [ackage, it's worth a take, if the rate and clauses inside is similar to the bank.

Cheers

Dear

I need to throughly explain the concept:


Base rate + spread rate = Effective lending rate

Base rate will alter according to banks need from time to time, hence it will affect your EFL

Spread rate will be fixed throughout the loan tenure.

Hence, banker like to say lower spread rate will be better:

Example:

A) 4% + 0.5% = 4.5% effective lending rate
B) 4.1% + 0.4%=4.5% effective lending rate

Both ELR is the same, but the spread rate is different.



Hence in common perspective sense, people will chose the lower spread rate as it is fixed throughout loan tenure. Thus will say B is better.

But actual sense, there's no best solutions or answer for this. Because, lower spread rate doesn't secure the bank from increasing the base rate in the future and ELR is higher than A in the future.

It's very subjective:

1. Base rate is different across different banks.

2. When OPR adjusted by BNM, Base rate wouldn’t bulge.

Base rate would either stay neutral or increase, depends on bank owns decision. Base rate could even change without OPR altered.

3. SRR is the reserve requirement that bank needs to uphold, set by BNM. It’s a liquidity management. When BNM believes economy is prospering and lack of funds, it may reduce SRR requirement to keep less money as reserves in bank and have bank lend more fund out for economic activities. This lead to higher loan growth. The changes of Base rate can reflect the effectiveness of Government Monetary Policy.

4. Spread are defined according to the borrower risk profile, but spread rate are mainly fixed when display to public, as most of the borrower holds almost identical risk.

5. Base rate may be adjusted every 3 months, it’s following KLIBOR. Every 3 months we may or may not witness a changes in bank base rate, but it depends on the banks own internal decision. Hence it is subjective. 3 months stated are just an example usage.

Example:
Jan OCBC rate 4.02
April OCBC rate 3.92

6. Spread rate will not change and is fixed till the end of the loan tenure

7. even when base rate is superbly low, the effective lending rate in the end could be higher.

Example:

Maybank: Base rate 3.2% + Spread 1.5% =4.7%
OCBC: Base rate 4.02%+ Spread 0.5%=4.52%

It all boil's down on the spread given, hence do look at the effective lending rate instead!!! Shop around and ask your mortgage agent.

Base rate

Pro
a) Greater competition between banks
b) Higher transparency, as bank will display their profit margin and bank lending efficiency
c) Bank loan rate changes will have a higher correlation with Malaysia market economy and OPR.
d) Better indication in monetary policy changes.

Cons

a)Uncertainty. Rate may change accordingly to banks own internal desire.
b) There’s a bottom line for how low our loan rate can drop.

Example:
BLR 6.85
6.85-2.5%=4.35%
6.85-2.6%=4.25%
And so on
Base rate
3.2%+ 1.35%= 4.55%
3.2%+2%= 5.2%

BLR is negative in nature, it can go as low as the bank allows it to be.

Base rate is positive in nature, it has a benchmark bottom line. 3.2% is the bottom line and won’t go any further down."

For me, if the ELR is the same, spread rate different isn't differ by alot, I will chose according to few criteria as below:

A. Banks that are easily accessible to your vicinity, why take loan offer form bank when you need them, you need to drive 20-40km.

B. Customer services, go with bank that offer tremendous value added service, try calling their hotline whether easily reached and are they responsive and helpful. In long term, this will lessen any unwanted hassle.

C. Semi or Full flexi that suits your criteria. SOmetimes, different banks semi and full flexi mechanism is different

D. Does the loan package has the right features that you need? Finance legal fees, semi/full/fixed/islamic loan ? lock in period or without? defaultment period ? loan account is it link to saving or current account?

E. Does the consultant serves you well?

etc all this that must put into consideration into long term perspectives instead of just interest rate. Effective interest rate right now is quite short term view.

Cheers

Dear,

No problem, hope the information helps you.
Any more inquiries, do ask us here

Cheers

Dear LNYC,

1. Not all bank does it.. so becareful if someone say you can do it just by paying extra progressive interest

2. Just trying to create awareness of this issue, to have correct information

3.As spoken, certain bank allows and certain bank doesn't allow such method

Cheers




No problem

Hope it helps, if you have any more questions, do ask here at lowyat forum!

Cheers

This post has been edited by Madgeniusfigo: Sep 15 2017, 05:04 PM

Dear,

1. Yes you need a banker to summarize guiding you through the letter offer, and also you neeed to double check it yourself! Hardwork due diligent pays off in the end!

2. yes as I mentioned, most of the time will be treated as advanced payment...

3. Thanks for understanding, and not confused by some netizen reply that said

"Extra cash paid to the progressive interest will set off capital"

It's a totally fallacy, only 1/10 bank offer such scheme but you need to apply in advanced and ask for the procedure when wanted to offset capital. NOT ALL BANK DOES IT..

Hope that netizen learn something.. and not simply provide false information, as he proclaimed as some big shot advisor..

netizen here should do own study too, not to simply trust anyone.

Cheers


O.0!!!

This post has been edited by Madgeniusfigo: Sep 16 2017, 02:01 PM

Dear

...
1. No one is being salty.. just trying to get the facts right

2. YOur link is interesting, Now I have double confirmed that you read about how to correctly calculate progressive interest and learn from lowyat forum.. NICE!

3. YOU can pay the progressive interest when disbursement by stage to reduce the interest or completely eradicate the interest WITH SPECIAL APPLICATIONS WITH THE BANK ....

You have to request for such facilities to cash in exactly as the disbursememt of money according to schedule of payment for progressive interest. Then you can bank in extra to offset according to the disbursement table..

If without such special facilities, what you paid extra for the progressive interest will be as advance payment...

4. You aren't wrong, just that you aren't being specific to netizen that they required to apply special facility during loan applications to get such facility... and not every banks provide such facilities................

5. You can verify the info by calling bank service hotline bro... not rocket science...

Please CHILL laa...

Dear

1. We are here discussing on the matter of loan, what's wrong and right.

2. We are discussing on the fact on the statement you had made. Please state a stronger evidence and statement to support your claim with Letter offer etc.

3. few netizen here has criticized on your statement already... how is it being salty when they know that statement is in fact wrong and you are claiming it right without proof and evidence?




Thanks

and chill please.

Cheers

This post has been edited by Madgeniusfigo: Sep 17 2017, 08:59 AM

Dear

1. When I check my forum lowyat, I hope notification is from netizen who needs help in loan mortgage knowledge

2. When ever I receive notificaitons, all from AIA BALANCE reporting all of my every posts.. You are wasting my time

Seriously.. I am here to help netizen borrower.. not being spam by you EVERY DAY....

3. You still havent get to the fact of providing evidence on your claim of your statement..

4. When netizen state your false statement.. you stand very strong but not providing any proof....

5. Please stop spamming? eh... you just spam a post unrelated to the discussion and loan related..... that post deserve
a report..

6. Please stick to our current discussion

Chill and
Cheer

This post has been edited by Madgeniusfigo: Sep 17 2017, 09:14 AM

Dear,
1. Yes you can walk in and check your loan eligibility. No issue

2.



1. Based on the details given by you, Your max loan eligibility for each bank is as follow:
Bank Loan amount
A*BANK 1,067,725.00
H*NG LE*NG 1,133,888.69
M*YBANK 935,408.33
*CBC 1,020,109.52
R*B 1,312,745.83
U*B 792,551.19
C*MB 1,299,245.83
AFF*N -
PB* 1,299,245.83
HSB* 1,020,109.52
Things to take note of based onmy max loan calculation
" -The best bank to get the highest loan would be HLBB . However, each bank has it's own ball game
Different bank will calculate your income and debt accordingly based on each bank's different policy. Hence,
I would need to do a due diligence on your profile before suggesting the best bank to proceed with."

" - I would need to check you CCRIS, CTOS and income documentation before giving you any assurance.

If everything goes fine, 90% shouldn't be a problem for you."

3.
- EPF takes 1-2 weeks release time
- submit spa, letter offer and agreement loan to the EPF centre to get the fund disbursed

Cheers

Dear remora,

1. Bank would look at your full loan amount of the house loan. Lets say if you borrow from the bank RM300,000, most of the bank will look at the debt RM300K as calculation of housing loan debt.

Bank will look at outstanding balance of few debt facilities, such as credit card as calculation

2. Improved credit rating?

I would need to look at your ccris before I could advise should you or shouldn't you do it.

Cos scoring based on lots of factors and crris without debts is a terrible scoring

Cheers

Dear,

1. When you pay extra for monthly installment, which it will reduce your total interest charges.

Example:

2016
Housing loan Rm500,000 / 4.5% interest rate / 35 years loan tenure
Monthly installment is RM2,366 (Rm1,875 Interest + Rm491.28 Principal = Rm2,366)

As you can see, your installment payment are actually paying more towards your interest than your principal.


If you decided to start paying extra RM500 every month. Your Monthly payment will be RM2,866 (RM1,875 Interest +RM991.28 Principal = RM2,866)

You will be paying more towards your Principal with the extra RM500. Hence, if you continue paying extra RM500/month consistently.

Your total interest saved would be RM180,759
Your Loan tenure will be shorten by 136months.

-This will help reduce your interest charges and reduce the loan tenure.

Paying extra to Capital account/advanced account

2. If you have a sudden influx of cash into your pocket, lets say inheritance of RM100,000, and you decided to put it into your housing loan capital account/advanced account, because you have max out ASB and other financial options.

Example:

2016
- Housing loan Rm500,000 / 4.5% interest rate / 35 years loan tenure
Monthly installment is RM2,366 (Rm1,875 Interest + Rm491.28 Principal = Rm2,366)
Total interest charge: RM493,837.28

- If you credit in Rm100,000 into the account, housing loan outstanding would be RM400,000 (RM500,000 -RM100,000), and paying the same installment amount, this will reduce your total interest charge to Rm395,072.

Because the interest you are paying right now is 4.5% on Rm400,000 instead 4.5% on Rm500,000.

Hence, you save interest and reduce the loan tenure likewise.

Cheers

Dear



1. This is normal for current market, developer has good relationship with A branch manager, so they designed a packaged that benefits only this branch..

YOu have to understand is, every same bank branch are competing for sales target, so each are competitor

Cheers

Dear seizer,




1. I think what you meant is, can you pay extra monthly installment right?

Yes you can.

RM2000 monthly installment = （ RM1800 interest + RM200 Capital) *example *

you paid extra RM2500 extra = (RM1800 + 700 CAPITAL) ... RM500 extra is none withdrawable though!






NOPE

1. YOU can put min limit 5 years though. lesser premium amount

2. WHy he does that, you have to find what is his agenda



They term it MLTT because the housing loan protection package insurance is called MLTT and not clta.. for islamic product definition purposes



Extra payment

1. When you pay extra for monthly installment, which it will reduce your total interest charges.

Example:

2016
Housing loan Rm500,000 / 4.5% interest rate / 35 years loan tenure
Monthly installment is RM2,366 (Rm1,875 Interest + Rm491.28 Principal = Rm2,366)

As you can see, your installment payment are actually paying more towards your interest than your principal.


If you decided to start paying extra RM500 every month. Your Monthly payment will be RM2,866 (RM1,875 Interest +RM991.28 Principal = RM2,866)

You will be paying more towards your Principal with the extra RM500. Hence, if you continue paying extra RM500/month consistently.

Your total interest saved would be RM180,759
Your Loan tenure will be shorten by 136months.

-This will help reduce your interest charges and reduce the loan tenure.

Paying extra to Capital account/advanced account

2. If you have a sudden influx of cash into your pocket, lets say inheritance of RM100,000, and you decided to put it into your housing loan capital account/advanced account, because you have max out ASB and other financial options.

Example:

2016
- Housing loan Rm500,000 / 4.5% interest rate / 35 years loan tenure
Monthly installment is RM2,366 (Rm1,875 Interest + Rm491.28 Principal = Rm2,366)
Total interest charge: RM493,837.28

- If you credit in Rm100,000 into the account, housing loan outstanding would be RM400,000 (RM500,000 -RM100,000), and paying the same installment amount, this will reduce your total interest charge to Rm395,072.

Because the interest you are paying right now is 4.5% on Rm400,000 instead 4.5% on Rm500,000.

Hence, you save interest and reduce the loan tenure likewise.



Cheers

Dear noleave,


1.
1. Based on the details given by you, Your max loan eligibility for each bank is as follow:





1. Not an issue, just need the latest payslips salary credited into the new company, will be fine.

2. Noted. not a big issue

3. It's your saving though, you can chose to show bank how much you have or not. Hence, it's better to keep it a secret , However, certain bank would look into how much cash saving you have, as it will boost the scoring. NOnetheless, not a big issue, just show them you have fund investment as supporting income

NDI, will be affected by your salary income and your current debt recorded in CCRIS.



4. If IT'S JUST 1, < IT WON'T be a big issue

5. The confidence of bank approving your loan would based on, how high the loan amount you are applying for, if it's within bank DSR, it should be fine.

Hence, would need to check your CCRIS CTOS, and check your profile document.

Then only, calculate your accurate max loan, and your preference on loan structures products.

ONly then, could I advise, which bank suits you and which bank approval confidence is at the tip top

Cheers

Dear TaiGoh,

1. Currently MBB, PBB, HLBB, UOB

Certain bank look at profile only and offer the rate.

lowest is 4.22%

2. MRTA is not a compulsory, but certain bank is compulsory and certain bank is BRANCH bank compulsory. haha

Bank branches has to hit target for their MRTA quota.

3. RM580K MRTA min 5 years around 1-5k

Cheers

Dear WahBiang,

1. You can submit with settlement letter document of your housing loan. Settlement can get from bank after you settle the O/S amount


2.

CCRIS will be updated every 10-11th of each month.

Example:

April 10-11th, will show CCRIS details of March 1-30th

2. If you settle your debt by 28 or 29th MARCH, April ccris updated on the 10-11th will had removed your settled debt from CCRIS.

3. Make sure you don't settle it at the very last day, because bank stuff need time to key in the report and BNM staff need time to update the system.

Cheers

Dear charurin,

I would need more details before I could answer you with concise answer

1. Bonus, is it a performance or contractual bonus

2. OT, can u break down on 6 months OT received?

Month
8
7
6
5
4
3

3a. How much u used last month for your credit card

3b. You wish to have loan packaged with semi or full flexi services?




3c. Do you wish to have your legal loan financed?




4a.Credit card in ccris, bank calculate its debt will based on how much you swiped and not how much you owed and settled. So it depends on how much last monht you swiped/used on your credit card

4b. Best value as in interest rate only? PBB maybank

However, there's few more factos to look into it

- Can the bank finance my legal loan
- can the bank provide me with features that I need
- How is the late payment penalty

5. Certain bank wants to know how much cash flow you have, certain bank just wanna look at your debt service ratio. So it really depends on what's your criteria for loan and which bank suits you

Cheers and hope you answer so that I can provide you with more concise answer and solutions