Dear Rainderain

1. Not all banks provide such services.

2. Yes PBB do offer this package and allows you to pay installment (principle + interest). but your starting installment payment will be heavy rather than allowing yourself to seek and pay for min amount during the construction period.

Dear samkps,

1 Other banks has been imposing charges on over utilization of the capital account. Just with different method. CIMB gets the most huuuuhaaaa from this.

2. Ambank charging rm500/ month if your outstanding balance after crediting extra cash into it is less than 10% of the actual outstanding balance
RM500,000 OUTSTANNDING, CREDIT RM460,000. rm40,000 10%OF rm500,000 IS rm50,000. Bank will imposed charges. This isn't as bad as CIMB but still almost equal footing.

3. It really depends on banks leveraging ratio and profit margin. So there isn't much to predict for incoming banks imposing such policy.

4. Putting cash into capital account is never my idea, I will use most of the cash to invest and some partial emergency cash in the capital account. Rm100,000 MAX will do for any emergency.

5. Why park all your cash in capital account when you can utilized it investing into different assets which bring higher yield.

6. As I say I am never a believer of this flexi system.

1. Let me look back on other Letter offer first, can't recall. Lately been doing lots of ambank cases.

2. Yes, but nothing can be undone. Change facility to other banks shall show protest. haha, Mortgage loan to the bank doesn't actually make them much money except, it is an entry dish for them to cross sell you credit card, open current account, saving account. So, you cant blame them for such action when it is not making them much money and margin profit diluted.

3. So far bank has almost the same policy on capital account with ambank just that the structure is alittle bit different.

4. The best is still credit into flexi account.
FD now comes with flexi, you can take your money out anytime and earn the periods hold in FD's interest. You only get mortgage from one bank? CIMB? because you could park at other bank's capital account facility.

This post has been edited by Madgeniusfigo: Oct 30 2015, 11:00 AM

Dear choywm,

For refinance cash out.

1. Cash out part 10 years is on the calculation part. It is only for the bank internal calculation for your loan eligibility.

2. Cash out installment payment can be stretch to 35 years max loan tenure and maximum age 70. If you are currently age 60, then no choice, 10 years is your max.

3. Oh, it's ok, I ain't any expert of Maybank, but I am able to help you to stretched it to 35 years max if your age is less than 36 years old.

If you need my help, just give me a call or text will do.

This post has been edited by Madgeniusfigo: Oct 30 2015, 06:33 PM

1) This is the estimation of the total loan amount charged and differ by bank. This is a benchmark of the highest cost.

2. Yes, your legal loan+stampduty loan + valuation price is logical and reasonable.

Dear choywm,

Sorry, didn't see the OD part, my eyes skipped a beat when looking at your posts. haha

1. May I know what's the reason for you to take Overdraft over normal cash out?

As the interest for overdraft is very high

Dear choywm,

If you use cash out is much more beneficial, let me explain here.

1.Full Flexi cash out is beneficial because the interest rate is based on the loan amount which Rm500k above rate range 4.4%-4.6.

2. When you are not going to utilized your cash out amount, you can park it inside your loan capital account to avoid the interest charged.

3. When there's an emergency, you can quickly withdraw the cash from the capital account.

Example.

Full flexi

Rm600k loan amount /4.4%/
Rm200k cash out amount/4.4%/

It isn't the time to utilized your cash yet, hence you park it inside your full flexi loan capital account.

Rm600k-RM200k =RM400K
interest charged on the RM400K instead of the RM600K.
Hence, your Rm200k cash out is parked without being charged interest. (safe heaven)

4. For OD, the interest should be around 5% above (Not sure right now) / full flexi cash out 4.4-4.7%

5. There's a 1% interest charged for unutilized amount (RM200K and above) / full flexi cash out no additional charges

6. Bank will review your profile and can decide to stop financing your overdraft. (hence your emergency cash can be taken anytime) / full flexi cash out, you have full authority control over it

7. nowadays bank usually will offer half term half OD

8. Maybank, tenure of the OD usually follows the term loan or less (I am not sure about this, HOPE some one can explain on this) / full flexi cash out capable stretching to maximum 35 years, hence the installment will not be that heavy.

Conclusion is

Full flexi cash out strived over OD facility.

Just my opinions

Dear Nardev87,

1. Bank wouldn't take claim as income derivation. Claim is consider money unearned.

2. Bank will only consider income as follow
a. Gross salary
b. Allowance
c. Commission
d. OT
e. Bonus
f. FD
G. Rental income
h. ASB dividend
I. Shares Div

3. Are your income at the edge and aren't sufficient to service the installment? Do provide details below so that we can calculate for you accurately your max loan eligibility.

Dear yrag,

1. Before you loan submission, banker will call their panel valuation firm to do 2 verbal valuation on your property. They will just provide housing address, square feet , any renovation details on the property to the valuer and property type. The valuer will then check their system data record for latest transaction price for your property and deduced a suitable range of price.

2. When valuer gave a price that can matched their call, hence the verbal valuation checking is done and confirmed. Banker will then submit your loan. After your loan accepted, you will sign Letter offer.

3. After you sign letter offer, bank will send Letter of instruction to lawyer and valuer. You will then sign the SPA, valuer will then ask for a copy of SPA from the lawyer. Valuer will start doing land check on the property itself and do a valuation report. Valuation report done, if the price mismatch, valuer will call you and inform you about it.

4. The verbal valuation part when valuer confirmed with banker the value match, usually it matched.

5. But when valuer only give 500k property value for Rm600k PROPERTY PRICE, and banker write in 600k property value in submission form and lie to you, the possibility of you paying for the extra cost will be there.

6. You wouldn't know whether valuer gave the exact value you wanted to buy or sell at initial stage. There is possibility where banker will give you the number of the valuer and let you to confirmed with him (highly unlikely)

7. When the valuation report is out and the price and value doesn't match, you can cancel the whole deal. Yeah it is a waste of time. and it incurs abortion fees of 1%

8. This whole system is based on trust actually. So, find a reliable banker who would help you out genuinely.

This post has been edited by Madgeniusfigo: Oct 31 2015, 12:42 PM

1) Different bank has different charges. Do read at the facility agreement

Dear usernamethatsme

1. changing from flexi to semi flexi is just the same. They mechanism of the flexi is still the same but you will saved on rm10 current account. (I bet CIMB won't allow such transition from full to semi flexi or I might be wrong)

2. If you have other flexi account, do put it into them, If you don't have, worst come worst pop it into FD account or DUO FOREIGN FD account for higher interest rate.

Dear Kelthruzad,

1. HSBC have zero moving cost but usually zero moving cost rate comes with higher interest rate than normal conventional loan. ZMC only preferable towards people who wish to flip their property within 5-6 years time or less. So that they can keep their entry cost low, intial investment cost low and rip higher profit yield. It really depends on the rate difference.

2. If you would hold your property for a long time, it will be advisable to get Non - ZMC.

3. For few banks without zero moving cost, you can actually finance 90%+ 5%. Meaning to say, 5% will be inclusive of your legal loan fees, stamp duty fees and valuation into your loan amount. The rate will be lower than zero moving cost rate.

4. In the end, it really boils down to how many years you are holding the property and the rate different by how many %.

Dear rainderain,

1. To pay full installment during construction period, only few bank will have this options (PBB and etc etc). You will need to indicate it to your loan agent before loan submission.

2. For usual scenario, you can only serve full installment when the project is 80-90% of completion, you will need to write to bank and request to start full installment.

3. To your question, Yes and No.
No, as some investor they would pay as little as they can before they flip their property (short term)
Yes, for own stayed owner who wants to start paying on the capital ASAP. Moreover, to save up on the interest, because interest paid during the construction period wouldn't credit into capital.

Dear Laysan12,

1. Yes, there isn't anything wrong with islamic housing loan. Is just that the name and terms used are different for both of them.

2. Conventional loan and islamic housing loan serve the same purposes

3. Islamic housing loan doesn't have lock in period, but it comes with a catch

4. Islamic loan has more paper documentation and you will need to fill up more paper.

Conclusion,

You can opt for islamic housing loan, no harm.

Dear gunplakk,

1. The answer is Yes.

2. When you wish to settle your loan, go to one of the branch, fill up the form and get your lawyer and paid off the remaining outstanding balance.

3. After everything is don, you can collect your title.

This post has been edited by Madgeniusfigo: Nov 2 2015, 11:24 PM

Oh Rumahwip.

1. Yes, 10 years is the term for receiving a good deal from the government.

2. To start paying off your installment early, only 2 ways to do so as stated from previous post.

3. If the restrictions for RUMAHWIP aren't that strict, try renting it out.

Dear leelee,

1. Yes, 3rd party financing is still allowed. Each bank has its own 3rd party financing criteria.



2. If you are saying Pure 3rd party financing. Go for OCBC.

Dear Skidd,

1. Sad to hear that your rate will hike.

2. May I know more about your profile before we discuss further? Could you provide me with below details for better accuracy in advising you.




3. 15 years installment Rm800. The rate will be around 4.6%.

To cash out and pay just RM800 installment, the amount to finance is RM105,000

-Actually, How much cash do you intend to cash out?

Dear Faridfauzi,

With all the debates and sharing, yeah, you can learn alot from this thread alone.

1. When you applied for loan, there's few things you need to look at.

a) Lock in period
b) Penalty charges for late payment
c) Loan tenure
d) the interest rate
e) Margin of finance %


2. For MRTA AND mlta EXPLANATION do look at above post I written. Usually MLTA would be appropriate as MRTA Coverage and benefits aren't that comprehensive.

3. Have you guys applied any mortgage with any banks? If you need my consult, feel free to inquire me. I don't charge fees as I receive commission from the bank itself. I provide unbiased overview of which bank you should apply and analyse your profile.

Dear kingsora,

Congratulation on your loan approval! When loan approved, you will be able to know the loan details already......

1. For the lowest rate can be done for property RM300K and above is 4.4% Rm500k above is 4.37%. This is the best deal AMbank could offer! haha

2. For other bank Rm500,000 property (RHB, BSN) would be standard 4.4-.4.5%

3. PB RM800k above property could get 4.35%