- duplicate -

This post has been edited by Jasoncat: Mar 25 2016, 01:01 PM

The small fine print in the LO or FA granted the bank's right to do so (and in fact many things the bank can do under the watertight terms and conditions) but it is very unlikely to happen and in this particular case about the revision of pricing spread (if no sign of deterioration in the credit standing of the borrower) it is against the BNM Reference Rate Framework.

Nope. The analysis of the above doesn't really help in BR prediction as BR components reflect the changes of monetary policy and market funding / liquidity condition. Nevertheless, analysis on the FI financials does help to have a better clue of some of the components of the loan spread.

You can have prediction on the BR trend as it corresponds closely to the monetary policy of the country and the market liquidity. Do a study and forecast on the state of economy locally and abroad (incl inflation, GDP growth & interest rate) - that's for a longer term basis. Market liquidity can also be affected by many other factors eg the needs for the banking industry to be in compliant with the Basel III requirements resulted in a surge in demand for deposits and consequently the rise in money market rate, the ease of SRR which resulted in free-up of funds to the market (hence more liquity and ease of rate) etc.

There won't be an answer for that.

Statement no 4 really drops my jaw.

If you mean fully settled, then the record will be removed from the CCRIS, hence no longer visible by bankers.

If you are capable of regularizing the payments in arrears, then you don't even need to do a loan restructuring / rescheduling. Clear the arrears and continue then with prompt payments.

You can still go ahead with your loan application and if there is a need then show the proof of your payment that you have regularize the arrears. If your PTPTN monthly payment is still within your capacity, then just continue your payment promptly going forward and no restructuring is required.

Btw, the CCRIS is to be updated latest by 10th by the participating financial institutions. 15th is no longer the deadline.

This post has been edited by Jasoncat: Apr 25 2016, 08:06 AM

So long as the loan repayment is made and cleared on the last business day of the month, there shouldn't be such thing as "BNM staff need time to update system."

This conclusion is somewhat misleading. It's only true if the BR of the banks that you compare are all the same otherwise no historical evidence or any study that can convincingly suggest that "lowest spread is the best".

During construction, the borrower only needs to pay loan interest of the loan disbursed. Payment of loan instalment (principal + interest) only commence upon full drawdown. This is basic.

May I know on what basis you said BR will be revised every 3 months?

The above statement in red is somewhat incorrect. The profit margin is a component of the loan spread, not the BR. Also, BR doesn't imply the strenght of the bank.

Property value does have a impact particularly in the subsale financing. It may affect the loan quantum though margin of finance may be fixed as it's not uncommon to see the bank's approval to state sth like "loan approved at x% of margin of finance based on S&P price or formal valuation, whichever is the lower".

In some other instance, the margin of finance may change but loan quantum remain the same despite the fact that the valuation differs from the S&P. Says the loan is approved based on S&P price but formal valuation shows value lower than the S&P price and the bank may consider to allow the loan quantum to remain as originally approved due to reasons like no significant variance between the formal valuation & S&P, the bank remain well secured despite lower valuation given the low margin of finance required by the borrower etc.

As I demonstrated in my second para, margin of finance may change with the change in the value of the property financed. 1st para - the MOF remain.

On the part of the charges for semi / full flexi, I think it's somewhat misleading to generalise it given the different product charges by different bank.

Monthly interest needs to be paid during construction period:
Rate × amount of loan disbursed × number of days of the month / 365

Roughly, you can presume total interest expense paid during construction period will be around 3% - 5% of your purchase price.

In the first place, are you be able to regularize the payment in arrears for your PTPTN? If you do and you are willing to do so, then just regularize and keep your PTPTN payment prompt in the future. If the arrears is beyond your ability to clear then ask for restructuring.

I don't really buy the idea when the so-called mortgage / financial consultant like to simply just asking people to restructure the loan.

This is not the thread for cari makan ... If want to cari makan here and MOD is fine with it, then give correct and professional advice.