Ideally the lower the better as the spread is normally fixed unless you default in payment.

However in the end, the net effective rate also to be considered as this is what you will pay for as some Bank’s Base Rate is higher but spread is lower but you will be at risk of future Base Rate revision.

BR is dependent on the banks’ benchmark cost of funds and liquidity, and can be reviewed by banks anytime even if there are no changes in OPR.

What is the financing amount? Normally rate offered around 3.7% - 3.8% can be considered ok.

Financing amount is RM677,628. But is it normal got difference 1st year and 2nd year onwards?

If Loan around RM677K, try ask FA whether can get a better single tier rate... say BR+0.7%. Financing is with MRTA, right ?

Thanks for the advise mate

Looks pretty good already for the current rate you're getting.

Thanks for sharing your view

Consider not bad. My Guess, PBB? 😜

Any bank mortgage agent here for hlb , cimb,bsn , pbb bank?

hongleong bank mgplus housing loan fully flexi.

i checked the statement, hlb released some amount to developer. and i have enough balance in the linked current account.

why hongleong bank still bill me the housing loan interests?

anyone can explain how it works?


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answer - there is max 70% loan amount cap, for contra interests.

This post has been edited by nbi: Apr 11 2020, 11:39 AM

Refer to your FA, probably T & C that full flexi is subject to full disbursement of your loan.

For sharing purpose, I applied hlb pbb mbb for 810k loan with 35 years tenure, successfully appeal for better tier, the rate as follow (I applied just week ago)

Hlb 3.65%
No insurance but 70% capping
Full flexi

Pbb 3.65%
Min mrta rm1250
Semi flexi

Mbb 3.75%
Min mrta 1500
Full flexi

Rhb 3.8%
No insurance
Full flexi

RM810K with no insurance coverage? Paying for MLTA ?

Full Flexi is only good is you have cash flow to pump into the account, also different Banks their Flexi Package is different. Please verify with FA.

First glance if all being equal, surely we go for cheapest rate. Now, you have to decide whether to take Full Flexi or not.

Yes,no insurance coverage, no MLTA/MRTA. Imo better go for life insurance if you wan to protect yourself. MRTA in the end will have 0 value and MLTA is very expensive

Well just make sure the loan risk is mitigated and covered. No point of buying expensive house and left it to next of kin to settle the debt.

Thanks for sharing

You do not need to have a specific policy for house loan. If you already have a Life insurance, It can serve as MLTA. Just ensure that the amount assured is of equal value to mitigate potential liability.

Dear sifus,

I've gotten 2 offers as below, which one do you reckon is better? Personally I prefer Bank 1 because they offers CLTA which I think is quite a good option for me to consider, however it has a slightly higher interest rate albeit lower spread rate.

Bank 1:
Loan Amount: RM422,535.20 (Loan Amount RM413,100, MRTA RM9,435.20, MRTA covers 25 years, sum assured RM422,525.20)
Interest Rate: 3.8% (Base Rate 3.25%, Spread Rate 0.55%)
Tenure: 35 years
Monthly Repayment: RM1,821

Bank 2:
Loan Amount: RM423,400 (Loan Amount RM413,100, MRTA premium RM8,900 covers 25 years, sum assured RM413,100, Critical Illness premium RM1,400 covers 15 years sum assured RM50K)
Interest Rate: 3.6% for first year, 3.72% second year onward (Base Rate 3.02%, Spread Rate 0.58% first year, 0.70% second year onward)
Tenure: 35 years
Monthly Repayment: RM1,780 first year, RM1,810 second year onward (This one a bit strange because the repayment slightly higher compared to mortgage loan calculator)

Bank 1 is RHB. Bank 2 is PBB.

i'll opt for the PBB one...