Not my interest to do lengthy calculation but I prefer to point out the mistake / misleading info for people like you. I still remember the entertaining statement of "15th of the month being deadline for CCRIS update" by you... it reflects how knowledgeable and skillful you are. Lol.

This post has been edited by Jasoncat: May 7 2016, 05:03 PM

Well I think there is still a need for this profession even for advanced countries which I reasonably believe the financial literacy is high. The issue is not on thr profession but the person who provide the improper / biased / inaccurate consultancy service and what make the situation worst is the bad attitude.

Boss, finally after long searching managed to get your preferred property? Congrats!

It's either housing loan/financing (which can be further split into priority or non-priority sector) or other term loan/financing whereby commercial shall fall into the latter. Property title wise you won't be able to see whether it's residential or commercial. Says serviced apartment under commercial title governed under HDA rightfully the loan shall be residential (ie housing loan).

This post has been edited by Jasoncat: May 17 2016, 08:09 AM

Pls see my edited reply in post #4088.

Your PBB loan is priced at 3.65% (BR) + 0.80% (Spread) with effective rate of 4.45%. With the BR revised to 3.75%, your effective lending rate won't be 4.45% any more. Instead it will be revised up accordingly to 4.55% - unless you are telling me that PBB change the spread lower by 10 bps to 0.70%, hence 4.45% but I don't think this is the case.

physz.86 as per my advice to you in post #3870 which I reconstruct partly below:

"...no historical evidence or any study that can convincingly suggest that "lowest spread is the best"".

I think you are puzzled by the same issue again...

You have to understand that the loan spread varies according to customer's profile, among other factors. The spread of 0.70%, hence effective lending rate of 4.45% as illustrated in the doc you shared is based on the scenario of 30-year loan of RM350k granted to customer with good credit profile.

Also please bear in mind that once you have accepted the bank's offer the spread will be fixed throughout the loan tenure (unless there is deterioration in credit profile).

This post has been edited by Jasoncat: May 19 2016, 01:53 PM

Both BLR and BR are determined by the banks at their own discretion.

I believe you refer to MLTA equivalent. Yes, you can request for the quotation and change to it if you are ok with it before they proceed further with the loan documentation.

The banks in town have been setting their own BLR for donkey years already. That's why I said, those who want to be a mortgage / financial advisor, keep themselves abreast of the latest developments and keep on learning is a must.

It's ok. Forget to add on, BLR was set by BNM for quite some time ago until it gave the banks the liberty to set their own ones. So it wasn't set by the banks all these while since day 1. Lol.

As for what Cagamas does and its background you may refer to its website. It's very common for the banks to sell (NOT taking a loan) their loan (mortgage and some hp too) to Cagamas (as well as other financial institutions) as part of their loan portfolio management be it from the balance sheet or income perspective. Given that the loan agreement is binding between the lender (ie the bank) and the borrower, for the loan sell down to another party (which is Cagamas in this instance), it would require the consent from the borrower (via the acceptance of the letter of offer / facility agreement) to proceed.

Nope I didn't say banks borrow from Cagamas. They can sell the loan to Cagamas (or other financial institutions) and this is deemed as part of the lian portfolio management.

Hehe... Cagamas is owned by BNM and a number of commercial banks. It does benefit the banking institutions by creating more liquidity in the market. Btw, your loan terms won't change even if your loan is being sold to Cagamas.

Post #4296 is correct that provided that you only make the monthly loan repayment with the amount as per the required instalment with no extra sum made, then there shouldn't be any funds available for you to withdraw.

The profit that the bank charges is not a component of BR.

I have not questioned the fact that profit is an element of the spread but the statement that "BR rate is just to show you the profit spread that the bank makes" as BR does not contain and show the profit.

Legal assignment of rental income is absolutely doable and common in commercial loans but not for retail mirtgage loan. Don't think the bank may want to do it as the bank generally keeps retail loan simple in administration.

Sale and leaseback is common but happen more frequent in corporate segment. The lease / tenancy agreement does add value but you still need to satisfy the bank that without that you would still be able to service the loan as there are uncertainties as to the credibility of the tenant (which is the seller) and continuity of the tenancy. Even for corporate segment these risks are taken into account too.