I would like to ask about legal fee charges on Loan Documentation.

I would like to know is there any reason why my loan lawyer charge me twice for "entry of private Caveat" in the legal fees and again twice in the disbursement.

FYI, The developer is taking loan from Ambank & AmIslamic bank to develop the residential township and because of that my lawyer said they need to access both Ambank & AmIslamic.

Below is the short details in the legal fees bill:

----Legal Fees and Disbursement Subject to GST----

Entry of Private Caveat (Ambank (M) Berhad) RM 300
Entry of Private Caveat (AmiIslamic Bank Berhad) RM 300



----Disbursement Not Subject to GST----

::Registration::
Entry of Private Caveat (Ambank (M) Berhad) RM 340
Entry of Private Caveat (AmiIslamic Bank Berhad) RM 340

Both banks is semi flexi. both also 3 years lock-in period from first day of drawdown. If signed their offer, Public Bank got 2% cancellation fee but 0% for CIMB Bank.

which mean, CIMB will be better deal??

for both Banks. semi flexi. 3 years lock in period. yes. come with mrta included to loan.

MRTA is strictly OPTIONAL and if the Bank dare to say in B&W that you must buy MRTA, please lodge a report to BNM.

Buying 5 yrs MRTA only benefits the agent selling the MRTA and of course, the Bank and Insurance Co.

That said, banks can quote a lower rate for those ppl buying MRTA.

And I do recommend ppl to buy MRTA for own stay properties, but 5 yrs MRTA is total waste of money unless you plan to pay off your loan in 5 yrs

At face value, without looking into the LO further, yes, it does look like CIMB has the better offer.

You are definitely right. The reason MRTA for 5 years is so cheap is because within the 5 years, the coverage falls just as fast! That means if the person covered dies in year 4, while his loan outstanding is left with 97% of the total loan limit, the coverage will only likely payout about 20% or so of the total loan limit, the family is still responsible to pay off the remaining unpaid loan outstanding.

But CIMB rate is very high 😰 maybe you can try for rhb as well they don't charge cancellation fees.

The bank has the discretion to package the loan with MRTA. This is an acceptable practice by BNM. If the offer is not acceptable by the customer, they can just walk away.

Ambank seems very aggressive as their offer is below 4.3%. I have taken their offer and opened a current account with ATM card as for loan purpose. Every month need pay RM10 for current account service charge. Is this considered full flexi loan?

This post has been edited by autodriver: Jul 7 2015, 02:08 PM

Have you read the tems and conditions of the flexi facility, if any?

Hi there, have a question hoping someone could advice.

I'm intending to purchase a new under-construction condo and according to the sales person the developer will be covering SPA & Loan Agreement charges.

Having said so, I've also been told that I need to pay the stamp duty. The question is isn't it covered by the developer or would that fee be payable to the lawyer? Also, what are the stamp duty charges like?

Sorry ah newbie question, very new to all of these.

Thanks in advance.

If the developer said they are not covering those then you have to pay for it. Usually this is normal since the developers can assign the lawyers for the SPA and the LA, so they can go with the lowest bidder, but with the stamp duty the charges are fixed. wel, some what.

There are 2 stamp duty fees payable:

a) SPA stamp duty- staggered, like 1% for the first 100k, 2% for the next 400k, so forth and so on.

b) LA stamp duty- fixed at 0.5% of the loan amount

Good news is that for the SPA and LA price of RM500k and below, and if this is your first property, you can get 50% discount on the stamp duty.

Let me know if you need anything else.

Thanks Faiz. Usually which one is covered? Agent says 0.5% so i assume it is the Loan Agreement stamp duty?

I dont think I can enjoy the rebate as the loan is > 500k

Usually the developer will cover the spa.. on top of that they will cover the stamp duty for the spa...

Sometimes in rare occasion developer will also cover the LA... and sometimes they will cover the Stamp duty as well

0.5%... then surely the loan agreement lah. 0.5% of the loan amount is what you need to pay. Payable to the loan agreement lawyer... which I'm sure the developer already chose for you

Can you put some i put here to help me? Much appreciated:


https://forum.lowyat.net/index.php?showtopic=3641385&hl=

This post has been edited by wild_card_my: Jul 7 2015, 05:22 PM

Got a question about amortization.

Suppose 2 banks offer the same rate for the same amount & tenure, should the amortization of the loan be similar? Or can each bank come out with its own schedule?

It should be similar as long as the interest is calculated on the same schedule such as daily or monthly rest.

Keep note that there will be many charges that takes place such as fire insurance, flexi fees if any, etc. that will kacau your repayment schedule. With daily rest even if you pay your installment earlier every month it would have an effect in your tenure.

confused abt all these loan stuffs..

Maybank 3.2+ 1.25

affin 3.99+ 0.46

how come the br can vary soooooo much.... banks r going crazy... it doesnt sound healthy..

which are better? does ambank offer any other loan type other than the one which charge monthly fees?

btw, if im applying loan with non panel bank, would there be a lot more additional legal fees? if so roughly how much more?

y they r not using blr now...damn frustrating with all the diff interest rate which cant be compared.

I am on mobile but we need to summon this jason86 guy to answer your question. How do I summon a person eh?

Now, I wont say which one is better. I agree that it is crazy. Did you know that AMBANK changed their BR from 3.99 to 3.80% just this month? Thos who got their loans at BR + .46 signed it based on 4.45 weir, but now they are at freaking 4.26% Crazy kan? Hahahaha

If you apply from non panel banks, you can use your own lawyer for the LA, but the developer will not cover the fees, as well as mmany other discounts that they give. You need to find that out. May I know why you are not going with the panel banks?


No kidding!!! I have 5 banks in my panel and Ican't be bothered remembering the rates anymore now. I just remember the weir, and not the spread.

But ZSeti is smart. As someone in finance, Iput my faith in Zeti. She said it was to spur competition.

Just applied mortgage loan for my new house. While pending for approval im very frustrated about the MRTA thing. Some said must buy MRTA cause lessen burden to family if I suddenly byebye. Some say don't buy from bank buy outside. Some say only buy few years enough. I don't know what should I do.

As of now, I asked the bank to incorporate MRTA into my loan and cover full tenure of 35 years. Wise? Since they said if I settle earlier I still have "some" surrender value.

It's my first home and probably not for investing.

This post has been edited by diners: Jul 7 2015, 10:25 PM

panel affin, maybank, and cimb.

affin like not very reliable.. nv heard of anyone borrowing money fr them...and very few branches..
cimb, like others said, full flexi loan is not my cup of tea, if other type of normal or islamic loan, they r not flexi at all rite?
maybank, with the spread at 1.26 and very diff fr other bank, i do not understand them very well.. like u said b4, better to go for safer, lower spread..

hlb offer priority customers home loan with legal fees waived, my dad is their priority customer, if joint name with my dad, can enjoy this benefit. the SA of my project told me the legal fees will amount to 13k.. 13k is a lot...the thg is, ive bought laman view, hlb manager told my dad bcoz they r new developer, they need to check their status first and it will take up to 2 wks for them to get back to me if they accept my loan app....

im in a dilemma now, not knowing which bank to go to.. seems non is perfect or ideal...