Follow the hierarchy upwards.

Yes.

This will reduce the instalment amount or reduce loan tenure?

Hi all, I am planning to settle my house loan early. Has contacted the bank for the final payment needed. I understand that I will need a lawyer for the remaining process (property still under master title). As my property is in klang valley and my loan bank is in Sabah, should I appoint a lawyer from KL or Sabah ? or it doesn't matter? And is there anything else that I need to take note? Thanks in advance.

you can appoint lawyer in klang valley. After you settle the bank loan will need to request for loan settlement letter and pass to lawyer.

Will suggest you to get lawyer in Sabah ya

hi sifu,
recently aiming for my 2nd property with spa price of 1 mill.
got kinda good rate of 3.85% from MBB with selection either Mrta or Clta.
Im looking for CLTA since my previous 1st property was on MLTA and i guess it is safer to assure my family has less headache on the loan repayment in case im gone.
However, is it a trend now to combine the amount of clta into my housing loan as well ?
im thinking if the clta cost 60K .. might as well ended with repayment of 120 K (addon with the housing interest bla bla bla)
is it worth it by combining the insurance into the housing loan or this is the new process nowadays
Thanks

the term is called capitalizing- meaning you finance your insurance premium using the housing loan.

there's no right or wrong, it's akin to you making early repayments into your housing loan to reduce the interest.

Personally i will just borrow the maximum from the bank because 3.85% is a good rate.

3.85%

mine is 4.22% from a loan in 2017

dang

Thanks for the highlight...
the concern i have is like ....
- I buy CLTA and combine my principal of spa 1mill + 60K insurance = total will be 1mill 60K. With the housing interest of 3.85%, roughly by end of the tenure, i should be paying around 2 mill 120 k ? (usually double right ?)
- Is this still applicable like im buying with housing loan of spa 1 mill 3.85%, at the same time, i am paying separately rm xxx monthly for my insurance so at the end of my tenure, im paying around 2 mill with 60 K (as independent insurance charges ?) As this is similar to my current purchase where i had my 1st house housing loan with Bank A and separate monthly insurance payment MLTA and chargeable from my credit card.


So what is about "making early repayments into your housing loan to reduce the interest." ?
Should it be...... instead of reducing the interest, but adding up more interest as im combining my CLTA insurance to the total loan amount ?
Im a bit confuse with this



hi !@#$%^ .... was told that MBB has the lowest / better rates in market while i was still thinking if i can get 3.8 %.
It looks something like Base rate 3% + the rates for each bank (MBB is 0.85%) .... so total will be 3.85%

3.85 lowest

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

Just got approved for mbb 900k loan for 3.9% on semi-flexi islamic, 35 years

Condition:
MRTT 450k for 20 years
Savings account
Credit card

if you are so worried about paying the double of your loan amount after 35 years, then perhaps you should reconsider about buying a 1 mil property.

the bulk of your interest is due to your 1 mil property, not your 60k insurance.

Semi-flexi as in there's capping or maintenance fees or withdrawal fees?

I got full flexi from RHB with 3.95%. Loan amount RM600k, no MRTA, no capping, no withdrawal fees and no maintenance fees.

reduce interest - yes
reduce tenure - yes

Nice, 3.95

Wow yours is good, i was told 4.0 was the min interest rate for flexi so i chose semi instead

Semi flexi has charge for withdrawal, dont think have maintainence fees though, that seems for flexi instead

This post has been edited by lolful: May 16 2024, 07:42 PM

Previously was offered with 4.0% without MRTA and 3.90% with MRTA, the banker are good and kind enough to help me to do appeal and final I offer I got are 3.95%

I see, I heard Islamic when you do withdrawal, you need to physically go to the bank and queue. Only conventional you can do via online thru their app. This is what banker told me, you might need to double check with your banker ya.

i got 3.98 for 240k loan with min mltt from hlb

The lowest rate i heard is 3.85%.