because the loan disbursed is not on 1st date of the month?

example if disbursed on 3rd april so only will charge u 27 days of interest.

so low....my loan now hike until 4.5%......thinking to refinance it.....anyone have 0 moving cost refinance kang tao?

seems like sky high price....you google legal fee calculator and pluck in RM 418k, the legal fee stamp duty for loan & MOT total around RM 15k only , even with disbursement also cannot reach RM 20k. Somemore haven discount yet. if add valuation fee few thousand also doesnt make sense.

Something weird happened.

Last year sold 1 property with mrta paid RM 9k included in loan. Everything done and received the money. This year after stumble to the insurance thread, seems that we can surrender the mrta policy to get back the values.

Todays I check, the refund values is the also RM 9k lol. I bought this Property in 2013, fully disbursed year 2015.

Why so weird?in a good way lol

yes somewhere is wrong.....i thought after 7-8 years after the loan fully disbursed, the mrta surrender values will left like 70% only..i cannot believe myself and go dig out old documents and check, initially paid MRTA was RM 9k, then the payment received also RM 9k lol......

do some calculation. example got RM 100k, put on these 2 scenario :-

with cap, RM 70k x 3.9% = RM 2730 interest saved p.a

Without cap RM 100k x 4.0% = RM 4000 interest saved p.a

Which 1 better?

why not? assuming most have rental income, call to any bank with this profile i bet most will be very happy to serve your friend.

SCB RHB....interest rate around 4.15-4.2

yes, so basically 2 steps to perform :-

1) if your interest is higher then 4.2%, its wise to initiate zero moving cost since you'll be getting lower interest and pay less in long run without incur any cost (under normal circumstance)

2) between choosing zero moving 4.2% or 3.9% but pay legal fees, most of the time choosing 3.9% are the best scenario....,unless you gonna settle your loan/sell the property immediately when the 5 years lock in period reach....

Under normal circumstances your monthly repayment would not change because its based on the official offer letter that you signed. Most of the time only OPR changes will officially change your monthly repayment.

And yes technically when you perform principal prepayment, the tenure reduced because the interest charged was lowered, thus more portion of the monthly repayment goes to principal and faster finish the loan

Read your loan statement then you’ll know how the bank charge u interest… dun just see from your banking apps as some of it doesn’t really show the whole statement in and out.

With 3k disposable income, I think installlment of around 2k is good range, so property of around RM 500k loan. But with your 300k cash, you can either buy more expensive property eg 700k with 200k dp, but I dun think it’s good to do it this way, unless you really found a desire property at that price.

Back to 500k property, u can park your cash into it and interest will be charge on the remaining 200k only, hence with 2k installment, you’ll finish the loan in no time, maybe in 10-15 years.

With 300k of cash, you could also buy 1 more unit for investment purpose, buy those subsales and with evident rental rates that able to cover all or most of the installment…..

If you have 60k cash now, whether you choose to finance the insurance in loan @ RM1.06 mill or pay the insurance with your 60k cash and loan @ RM1mil, its depends on what you can do with the RM 60k cash in hand.

If you put in FD, which generally lower than 3.85%, then pay the insurance is better option.

If you put in EPF @ 5% interest p.a averagely, then put in EPF is much better choice.

Purely on figures ya, if you say holding the RM 60k cash as emergency then thats another story.....you can also finance the insurance into loan at RM 1.06 mil, then pump back the RM 60k into the flexi loan to save interest, it can serve as emergency funds, but you need to pay slightly more legal fees & stamp duties due to higher loan amount.


This post has been edited by Rinth: May 16 2024, 11:28 AM

what i heard from my mbb banker is new rule...refinance property that already fully paid is only 10 years loan only, not cash out/top up loan.. if refinance existing property that still have loan is normal 35 years or up to 70 year old.. dunno how true is it...

Huh loan above RM 1mil then can get premier liao?

always go for lowest cost and outlay.....Maybank clearly the winner as always.

MRTA Full refund? Full refund of RM 29,750? MRTA cash value normally 0 upon maturity....you may want to double check on it. Other should be no problem

You're not getting the full correct concept of flexi Mortgage/housing loan..

housing loan repayment consist of Principal & interest, whereby the repayment was calculated based on your loan amount(example 500k), tenure (example 35 years), & interest rates(example 4%). Suppose that you pay according to the repayment amount(repayment is RM 2214 based on the example given), it'll take 35 years to finish the loan.

Out of the RM 2214 repayment, interest is charged monthly based on the outstanding loan amount on daily rest. So for your 1st installment(example on January), interest is RM500k *4%*31/365 RM 1698.63, and principal amount is RM 515.36 (2214-1698.63). Hence after repayment, your principal becomes 499,484.64 (500000.00-515.36). The process goes on every month.


So now come the flexi part,every bank have different flexi loan mechanism. But the basis of charging interest are the same, charged monthly based on daily rest. Technically means, when you pump additional funds into the loan, it'll directly reduce the principal, hence interest charged will be lesser. when your monthly repayment remain the same, it'll resulted in shorter tenure because interest charged was reduced from your additional funds. and yes it'll shorter your tenure, you just not aware of it.

Based on my experience, MBB semi Flexi loan is if you put example RM 100000.00 into the loan, and your repayment monthly supposed to be RM 2214.00, it'll be treated as "advance payment", but this advance payment is eligible to reduce interest (Some bank advance payment WILL NOT BE TREATED AS PRINCIPAL PREPAYMENT, hence wont reduce interest charged). And for the next 45 months (100000/2214) you no need to make monthly repayment anymore, even your standing instruction will stop. untill the whole RM 100k finished deducted then will back to normal.

RHB bank is the most flexi....Literally like saving accounts. You pump into loan now, 1 minutes later you want withdraw out also can. and the monthly repayment of RM 2214.00 still continue, you must continue pay monthly accordingly even you have RM 100k pumped into the loan.

Just beware that some bank have interest capping, means they'll still charged the interest based on the capping. i heard PBB have 30% capping, means loan 500k, max you can pump in 350k(70%) for interest saving, if you pump in more then that, they'll still charge you based on the 150k loan(30% of 500k).example you pump in 450k, loan balance left 50k, bank still charge you interest based on 150k. RHB if not mistaken no capping.

loan interest capping mostly should reflect on letter offer.. loan agreement most of the time are standard clause, hence you see there'll be letter offer attached together with the loan agreement.