Too bad, the early bird catch the worms.

Nothing to do with bird or worms actually

I am confused on what is the best way to save interest from home loan.
1) Pay more down payment, take as minimum loan as possible
2) Take the maximum loan and maximum duration (35 years). Pay more loan repayment every month.

All the way I thought option 1 is the best way but one of the banker told me option 2 is better. When we pay more loan repayment, ended up we will save more compared to option 1.

May I know for purchase of 2nd house, epf withdrawal is not allowed right? Just to reaffirm

Still not allowed unless you have already sold your 1st house.

Noted. Thanks ya

2. Take a longer tenure so your dsr will maintain lower for future investments, and then pay higher installment monthly to reduce the interest from incurring.

As long as you have never use your Epf for purchasing purposes, you can use it for your 2nd purchase

This post has been edited by lifebalance: Jun 6 2020, 04:48 PM

If im gonna take full flexi loan.

which is the correct way to reduce interest? say loan agreement stated monthly payment is RM 1,500. if everymonth i have extra RM 1,000 to put in

Do I straight up just pay RM 2,500, or still pay RM 1,500 but put the RM 1,000 into the flexi loan current account to reduce interest?

But your interest element will be very high and are will your cashflow in future sustain the higher monthly repayment? What about your other commitments?

For Full Flexi, just place it into your current account will do, the system will take the amount you put into the account as prepayment automatically.

So you will suggest me to pay more down payment?

I was hinting that you should not take the Banker advise just like that. You also need to consider will your cashflow be impacted if you have some emergencies or other commitments in the future that servicing a higher repayment may be difficult. Is the interest rate the same or differs for each option? You may want to work that out too. A situation like MCO/Covid19, has put some people in a difficult situation. Just give it a thought before you commit.

If you didn't make any withdrawal from EPF previously for the first house, your 2nd house can be treated as the first house when comes to EPF withdrawal... Thats what EPF staff replied me previously...

That is correct. In essence, they allow if you do not have previous record of withdrawal.

May i know what is the housing interest rate for Maybank for loan around rm500k. Is it maybank rate is better than others?

Not necessarily, if it's able to offer you rate around 3.2% that's a good rate.

Yes, 3.2% is a good rate. May I know which bank could offer around 3.2%?

Can't give you an exact answer on this cause it depends on banks offer, you may try apply diff banks to compare their offer.

3.1%

From maybank? Very attractive rate. Is it only applicable for huge amount of loan?