Tabung Haji pays like 9% dividend right, so its better to put money in Tabung Haji rather than to pay off your HL

Why ppl say pay off loan is better is due to 2 reasons

1) Cashflow - finish paying off loan means better cashflow cos you don't need to make the principal repayment anymore

2) Matching working life with Loan payment - while you can take a HL up to age 70, you must settle the Loan while you're still working right?

IMHO, you are overstretching your monthly commitments

What is your take home pay - less EPF, Tax, etc

If you take a 90% loan of RM1.5 mln = RM1.35 mln @ 4.5% for 35-years = RM6,400 per month. + RM1.7K for car loan + RM2K in joint expenses = RM10,100 which is already almost your Gross Pay

Also, you need some savings righ for emergency / one-off expenses / year end expenses

This is something you can afford to buy but CANNOT afford to maintain.

Was in the same shoes - saw a Semi D that I really loved but after crunching the numbers - cannot afford to live

Hmm RM900K property - say you take a RM800K loan @ 4.50% for 35-years = RM3,800 per mth + RM1.7K for Car + RM2K = RM7,500

That is also almost no room for any emergencies, sudden expenses, etc

First question – Is Property already completed or still under construction. If still under construction, you will need Developer consent for any name change and most Developer do not entertain, so you may have to wait until its completed.

Can I also assume that you and your Brother also took a Housing Loan together? In this case, its so simple as you will need the Bank consent and also what your Brother wants to do with the house.

Just to give some hypothetical numbers – and assuming its already completed.

House bought in 2014 – at RM500K
90% loan at RM450K
Market Value now at RM580K

Does your Brother have the RM40K (being RM580K – RM500K = RM80K * 50%)

If you want to sell your so-called 50% share and your Brother wanna keep the house, then does your Brother qualify for the RM450K Loan based on his sole salary. If your Brothe salary cannot support the Loan, the Bank will not agree to remove your name from the Loan and you’re stuck with your Bro until the House is sold or Loan is repaid

Prepared simple flowchart for you.



Attached File(s)
 Flowchart.pdf ( 36.52k ) Number of downloads: 41

Its not that I disagree with cdspins but there is a difference between being able to qualify for a Loan to buy a house and able to keep up with the monthly instalments and maintain a minimum standard of living and also have some savings.

What is your other household expenses and what can you able to save right now. Assume that you can’t rent out the current house and want to keep it, can you afford 2-Loan instalments.

Also, bear in mind, what is your current take home pay. With a gross salary each of say RM7,000 a month, your EPF deduction is about RM770 and tax is about RM450 per month, so your take home pay is only about RM5,780 * 2 = RM11,560 per mth – 2K for Car Loan – RM900 Housing Loan = RM8,660 – RM200 for Insurance = RM8,460, say RM8000 per mth

Then how much you spend on Food, petrol, house maintenance. Easily between RM2K to RM3K per mth right?

So, you have left between RM5,000 to RM6,000 per mth in surplus cash. Is this correct

If you take a RM1 mln Housing Loan at say 4.60% for 35-yrs, the monthly instalment is RM4,800 per mth

If you shorten the tenure to 30-years, the instalment is about RM5,130 per mth

Remember, its about maintenance of the Loan, not qualifying for it which is more important

I used the calculator below

http://www.cimbbank.com.my/en/personal/pro...s/homeloan.html

This post has been edited by cfa28: Feb 23 2015, 01:49 PM

Of course Bro, there is always a Max scenario and comfortable scenario. Everyone has different spending patterns

There are people in F&F saying that monthly salary of RM10K can afford BMW, RM7K can buy Camry / Accord, etc

Redirecting here as this is a dedicated Mortgage Tread.

I have no interest, you need to tag original poster poorguy2020

try this link http://www.kwsp.gov.my/portal/documents/10...13_Jun_2014.pdf

wouldn't it be better to refinance the 2nd loan (O/S of RM360K, MV of RM600K) to repay the first one of Loan O/S of RM40K only?

Bro, your first loan (Principal Loan of RM140K, O/S of RM40K) left back only <30% of Principal Sum.

Means you have been paying for quite some time already. Unless you took a HL of less than 10-years, it is unlikely to have lock in period right. Have you been making a lot of excess principal sum repayment

Perhaps more details, such as Date of Loan Agreement, Lock-in Period & Type of Loan (Semi-Flexi / Full Flexi)

Although PTPTN may not appear in the CCRIS, its important for the Borrower to take it into consideration.

If your net cashflow is only say 800 after deducting PTPTN of 200, then the Max monthly repayment you can afford is only 800 and not 1000

For non flexi loan, IMHO, the bank will only deduct the so called agreed month loan repayment which is in your Offer Letter from your Savings Account.

The thing about making additional payment for non flexi loan is how the banks treat such payments.

99% unless you specify as additional payment to reduce principal loan, the banks will treat it as prepayment which does not reduce the Principal amount or help to reduce interest.

So, for non flexi, please clarify additional payment mechanism.

The copy of stamped SPA and Loan Agreement will be given to you after the loan has been disbursed. (First disbursement)

For Fire insurance. Bank will buy and charge you cos

a) want to sell you their panel insurance

b) in case u did not buy or forget. Too risky.

Currently, fire insurance is based on value of house / loan amount and is fixed based on tarrifs set by Bank Negara Malaysia.

This means that it is same regardless which insurance companies you buy from.

Howeve this is expected to change in about 2 yrs time as bank Negara will allow insurance companies to price the premium for fire insurance and also motor insurance.

But you may not be able to change if under Housing Loan, esp for landed

For highrise. The JMB will buy insurance for the whole building. So you can request that the bank don't buy separate insurance


But do you know that actual payout for fire insurance is only to cover the construction cost of the house and exclude land value.


So for landed. If the house / loan is worth 800k and the whole house burn down. The insurance only pay say 600k to construct back the house.

So premium for additional 200k is pure waste


roystevenung another classical ripoff by insurance industry.

This post has been edited by cfa28: Jun 18 2015, 03:51 PM

For non flexi loans, additional payment must be made OTC - over the counter and must specify as additional payment to reduce Principal amount.

Bank will make it as inconvenient as possible to earn more interest.

No charges, save for your own time and other cost to go.to the bank to make the additional payment.

For flexible loan, no need. Just deposit additional payment in.the current account to reduce the interest charges.

But flexi loan comes with monthly charges.

Need to choose at point of applications whether you want non flexi loan or flexi loan.

Once approved, cannot change.

This post has been edited by cfa28: Jun 18 2015, 06:21 PM

Semi flexi, additional payment must be made via OTC right

Now most standard loans are semi flexi allow for additional payment any time without notice but must be via OTC

To withdraw excess payment, also via OTC with charges and other T&C

yes such loans no monthly fees

Fully flexible with Current Acccout features,.Can make additional payment anytime, withdraw excess payment anytime has monthly charges.

Welcome back bro, selamat berpuasa.

Advance payment does not reduce the interest right. Just sits there doing nothing unless you did not make payment rights, like going overseas for long holidays, etc.

My sympathies and condolence for your loss.

To all aspiring borrowers.

Please remember, its not how much you can borrow that is important.

What is more important is how much you can afford to pay monthly, your free cash flows.

Even if salary is 20k, if too much fixed cost that cannot be reduced, also no point. If can only afford say another 3k, then your instalment you can afford is 3k and loan is about RM600K for 30 year tenure although max loan is closer to RM1.3 mln

Apologies, not pouring water on anyone but borrower must always be mindful of cashflow vs affordability.