Can I know what amount you apply for that can get 3.8%? So far best I can find is 3.85% (loaning for 90% of 8xxk property).

MRTA is not necessary. Discuss with the loan officer what’s the absolute lowest. You can shop around too. Some will allow as low as 10 years for half the loan amount.

Then whats a good alternative in your opinion for the reduced mrtt coverage?

hi thanks for replying

yes have gotten reduction and now MRTA is now 20k but only covers half of the house value

This post has been edited by persona93: Jun 26 2024, 04:27 PM

May I know which bank offers u 3.85%? and is it a full flexi / semi flexi? also any interest capping? because these are my top considerations when deciding which loan package to go for

OCBC now offers promo rate at 3.8% provided you also purchase their MRTA/MLTA. if without MRTA/MLTA, the rate is 3.85%, but still subject to CCRIS scoring. From what I know, this promo is applicable for loan amount > 300k

besides, anyone can tell the differences between conventional mortgage vs islamic mortgage, apart from the islamic terms/wordings?

e.g. any extra costs need to pay for conventional loan but no need to pay in the islamic one, vice versa

Same

Any OCBC / UOB / RHB mortgage banker here that specialized in auction case?
Or someone can help to intro?

Looking to get a loan.

For context, I just signed offer letter for 820k. So I spent yesterday shopping around at the following banks (in chronological order):-

OCBC - 3.85% without MRTA/MLTA, 3.8% with MRTA/MLTA minimal amount. After further discussion with Loan Officer, the minimal amount is 15k.

Maybank - 3.85% with MRTA/MLTA (10k amount)

Public bank - 3.95% (can choose MRTA/MLTA or not) but they will request from HQ to bring down to 3.85% to match what other FI offering (this is direct quote from the lady who was advising me). In that case require MRTA/MLTA.

RHB - 3.9%, can try to push for 3.85%. Seems like required MRTA/MLTA but this wasn't confirmed.

Besides that through other contacts I spoke with the following banks:-

HLB - Directly said 3.85% can, with MRTA/MLTA minimal amount 10k

UOB - 3.85% with MRTA/MLTA

None of them have fixed mortgage (I asked), all are 'semi flexi' and discouraged me from full flexi since I'm wage earner. But the 'semi flexi' they described, based on my further questions, if you prepay a large amount more than your monthly instalment, interest will be counted against the total amount still owed. Which means... effectively same like full flexi (in terms of offset). What RHB/MBB agents explained to me was that full flexi has no charge to withdraw the amount, but has monthly current account charge. But semi-flexi has a charge (RM25, RM50, something like that depending on bank) to withdraw, no monthly current account charge.

After doing the above survey, I also tried to do so maths - assuming 738k loan amount (90% of 820k) and 30 year period (I'm not young), if I take the best offer above (OCBC 3.8% with 15k insurance) the total loaned amount would be 753k and the instalments would be 3510 a month. But if I take a 3.85% rate with no insurance, instalments would be 3460 a month. So purely on a cashflow basis 3.85% is 'better' (of course then its not insured in case something happen to me)?

Counting another way, even the 'minimal' insurance requested by the bank effectively 'costs' the same as a 0.1% increase in rate? So in order for it to be 'worth it' the MRTA/MLTA should bring the loan rate down by 1% (for parity).

Any other banks which may be able to beat the above offers? I've already submitted applications to four of the above.

3.8% is a good rate, doubt any banks can go lower.

Anyway, 0.05% is still interest saved in the long run. Just go for the minimal MRTA to get the lowest rate, the MRTA is still a protection in case anything happens.

If I take 738k loan with 3.85% rate - my repayment is RM3460 a month.

If I take 738k loan + 15k MRTA/MLTA (the minimum according to OCBC) and then 3.80% rate - my repayment is RM3510 a month.

Basically it seems that the MRTA/MLTA is 'worth' 0.1% rate increase (i.e. the monthly repayment for my loan with MRTA/MLTA is the same as it would be for a 3.9% loan without MRTA/MLTA).

And even though the MRTA/MLTA can be cancelled early (let's say in 5 years) which the agent mentioned, the amount was still borrowed and so I've still paid significant interest on that 15k amount within that 5 years.

Well you are saying as if the 15k MRTA is worthless and your money is just down the drain.

Which it is not... you are actually paying for the protection.

I'm not sure how much the 15k is insuring for and for how long, but in case anything happens at least the burden can be reduced.

Compared to if you have no MRTA, your family will have to bear the whole loan amount.

Plus there is a 0.05% (not much i know) interest reduction, why not think of it as a discount on the MRTA?

heck, people are taking full MRTA even if there is no reduction in interest rate, just solely for the protection.

Fair, i guess have to evaluate the value of that insurance to me. Maybe compare to similar term-life insurance externally.

This post has been edited by LostAndFound: Jun 29 2024, 01:10 PM

I have a 550k mortagage loan with 4.35% interest from 10 years ago. I'm parking 450k into loan and somehow the installment shown changed to 1.3k instead of original 2.7k.

My question is, does bank revise our installment value automatically if there's additional money parked in loan? So when withdraw that additional money, it will revert to original installment?

can I write to my existing bank and request for lowering the mortgage rate from 4.3% to 3.9% ? will they entertain ?

is there a fast and easy way to refinancing, like whatsapp ?


This post has been edited by ccschua: Jul 1 2024, 08:39 AM

you will need to call the bank to request change of installment amount.


of course not, this is not a pasar where you can request this and that

refinancing is the only way, and there is no guarantee you can get 3.9%

Hi did you call the bank and ask ?

Mine is Maybank and im facing this same situation I've put in advance payment last month and today my monthly installment is reduced from 1700 to 1300

Called the branch and they say they cannot change the monthly installments as this is control by the hq system.

The monthly installments will only be changed every 3 months based on total principle amount then.

As from my understanding, monthly installments will only change if there is an opr change and not when you put in advance payment.

If the monthly installments is reduced I dont see any benefit to park money as advance pymt as my principle amount is reduced the same amount 400 , same amount before I put in 70k advance payment.

Thinking now to withdraw again and put back in asm.

Wouldn't this be an ideal situation as in lower instalment?

This post has been edited by Gaia34: Jul 1 2024, 05:14 PM

Reduced installment means principle has ALREADY been reduced due to advanced payment, doesn't it? Unless I'm misunderstanding. Just because your installment is 1.3k (for example) doesn't mean you can't continue to pay RM1.7k....

Not sure I get the story right in the first place? I assume dump certain amount in principle it will only reduce the tenure whereby monthly amount will be remaining the same ? Anyone can clarify this ? Thanks