combine income with my wife...

Outstanding loan is 500k. Passed lock in period. I request to lower down interest rate but being rejected. If I refinance in other banks, is it worth to save interests after offsetting the lawyer fee and stamp duties?

Hi All.

I got my letter of offer from 2 banks.

Bank R: Housing Loan (RM 544,770) + MLTA (RM 13,985) with 4.40% interest rate.
Bank M: Housing Loan (RM 544,770) + MRTA (RM 27,732) with 4.35% interest rate.
Both are 35 years. Full Flexi.

I have used the loan calculators to check the interest rate payable from both banks in the span of 35 years (Bank R: RM 537,381.40, Bank M : RM 543,214.46).

I am planning to choose Bank R but I would highly appreciate any opinions/views/advises.

Thank you very much.

P/S:
I have done appeal for both banks to get the best interest rates.
MLTA from Bank R is fixed. One time payment of RM 13,985 for 20 years coverage (not yearly). I have double confirmed with banker.

so in general or overall ...which loan type is better Islamic or normal conventional to consider....

(what other main advantage of Islamic loans)

pls share

@megahertz

Thank you for the info. I generally aware of the extra $$$ apart from the down payment and currently preparing  for it.  It will be a few months before I start approaching banks (is this a good idea? or should I go now and discuss about the plan with them first, get to know the personnel etc...in order to get better change to be approved)

My actual worry is that, since I don't have any commitment yet, should I get a small monthly commitment first (use credit card to pay bike's installment for about a year or few months) to gain bank's trust...is this step a good idea to do? 

Thanks Madgeniusfigo! 

Between MRTA and MLTA, is it advisable to top up loan coverage with MLTA if one can afford?

For example, loan amount 680k, full tenure 28 year, bank ties in MRTA 8 years.
How to compute balance of coverage for 20 years for MLTA?
Is it by deducting personal life insurance coverage ~200k: 680-200=480k X 20 years?

Is MLTA transferable to new property if current property were sold before insurance reaches maturity?

It's more ideal to get MLTA to cover throughout the coverage.

Reason being is because in 8 years time, MRTA coverage drops drastically, since it's on reducing term.

For example, 680k MRTA for 8 years, by next year, the coverage would have dropped to 580k.

MLTA would cover you death + 36 critical illness where as MRTA only cover death. What if you're not dead today ? Do you still have to pay for your bank installment ? But what if you're not working (loss of income) because you're too sick ? MLTA will be there to pay out 100% immediately.

If nothing happens, MLTA will provide 100% cash back by 20th year.

MRTA also doesn't reflect on the change of interest rate, if the interest rate increases, the MRTA coverage would be insufficient because of the increased installment incurred.

Of course, if you're on a tight budget, you can always opt for MRTA, atleast there are some coverage, but opt for atleast 20 - 30 years instead for sufficient coverage.

Remember, you get what you paid for.

Guys hope your don't mind me asking this here. I already paid booking fees for a property but I change my mind and don't want it anymore. Will it be a big issue canceling the booking fees & will I gets a fine or pay for anything for canceling???

Also dont have any idea about ADL. Just informed by loan officer. But from his explanation, is just like my example above.

So, loan margin is also depends with the value of property? All this while, i thought based on price stated in s&p.

Guys, need some guide on how the flexi loan and term loan work for my first house

Let's say i need to take 600K loan at rate 4.50%

1) For term loan, we cannot pump in more money to reduce the interest right ?

2) For Flexi loan, we can pump in extra money, let's say i put RM400k into the flexi loan account, so how much the interest rate will be ?

Example 600K (Loan) - 400K (Pump in) = RM200K (Balance)
So the interest will be 4.50% x 200k ?

hello! i'm really new to mortgage loan.. recently just plan to buy a house.. i got a few offer from diff bank.. but i have some question in mind that need to clear off before making decision.. i hope some sifu here can help out...

bank A offer BR3.9 + 0.5 = 4.4%
bank B offer BR3.6 + 0.8 = 4.4%

these 2 bank offer same 4.4% but have diff br.. is there any main diff between this 2 offer? which 1 is better? or is the same??


lets say the house tat i purchase is 500k.. the above rate is with MRTA.. without MRTA is 4.5%.. should i take MRTA to get the 4.4% rate??? my initial plan is to topup my life/MLTA..

thanks!!