need more details, decrease in percentage or amount?

The amount yesterday and today is consistent, but not much la, less than RM5

If it's amount, then it is normal, since your loan is reducing. Also, I don't think you can see daily interest? Supposed to be monthly.

I can see the total amount at PBe daily, so I just minus previous day total to get the daily interest. It has been consistent for each monthly cycle, plus minus 1 cents. Anyway, not that i am complaining haha

I am currently looking at a property around 700k-800k range and wondering which would be the better option among these two if it's a flexi loan:

1) Deposit 20% of the property value, and only doing 25 years tenure.

2) Pick max years tenure, 10% deposit, but paying extra every month.

The agent is saying option 2 is better as I can put extra cash anytime and still get to shorten the loan in the end and pay lesser interest. Hoping for some more opinion?

This post has been edited by hirano: Mar 17 2025, 03:11 AM

Option 2 is better.

If it’s a full flexi loan. Take the max loan you can (90% or 95%) and the max tenure you can. Then park the excess cash you have to offset principle in the flexi account, then pay your installment as usual.

Depending how much you park over time, the loan can be settled in 25 years or less but still give you access to cash if you have emergency.

This is no brainer even if your goal is to settle the loan as soon as possible.

I can't comment on the bumi discount part.

But definitely I can comment on the name on SPA part - I took a joint loan with my wife. She has income but less than mine (can consider the loan to be achievable just by my salary alone). SPA only her name. No issue with getting financing.

However this was for subsale property and no bumi lot involved. But I guess from bank's perspective the bumi/non-bum is not an issue.

also important is check the interest rate, usually quoted as SBR + spread of the bank. usually if you get higher loan and longer tenure, the spread can be reduced substantially. Compare the interest rate between 1) and 2)

This post has been edited by koja6049: Mar 17 2025, 04:31 PM

Yeah but the monthly instalment is still higher (hence, higher DSR) compared to a situation where the person borrow lesser, e.g. 70%.

Any idea under what circumstances it will be wiser to pay more downpayment and borrow lesser -but maintain the max tenure?

If your DSR cannot qualify you for 90% of the property’s value. You are over gearing and prepare for bankruptcy if you YOLO that way. It’s beyond your financial means.

Under no circumstances it is wiser to pay more down payment if we are talking about full flexi loan like the ones by RHB.

You may argue, pay more down payment you get lower monthly installment — go back to my first sentence.

Borrowing is simply leveraging. Of course it’s best to leverage as much as you can. In fact, I won’t park excess cash in flexi loan, I’ll dump it in ASM where the returns % is higher than the loan’s interest rate.

I am however, only speaking about numbers.
For people who can’t sleep peacefully at night because they feel stressed cause owe bank 700k instead of owing 400k.. they stressed because every month have to pay bank 3.5k instead of 2.5k.. then that has nothing to do with financial literacy, just your emotional wellbeing.. which in that case do whatever you want that lets you sleep at night, but it’s not financially optimized.

My credit card due amount is 3x my salary every month. But I sleep soundly. 😴

i super like your last sentence. sleep soundly with due amount 3x your salary. brilliant

Few years ago I took a housing loan with short lock-in period (3 years) but slightly higher interest rate (4.45% as of today) than the others at that time. The reason was at that time, I was planning to sell the old house and pay off this housing loan, so the short lock-in period is more important.

But now I'm thinking to use the proceed from the old house in other investments with higher return and keep the current housing loan. What will be the options available for me to get a lower interest rate? If I re-finance then I believe it will incur additional legal fees?

How about requesting the current bank to adjust the interest rate/ monthly repayment and loan duration? Is it common for them to consider this?

Thanks

This post has been edited by lowyat101: Mar 21 2025, 09:57 AM

more likely you need to refinance. Definitely will incur legal fees.

how much will be the refinancing fee? worth it?

dependent on the lawyer you use, some charge high fees, some give a discount. But the stamp duty on the loan amount is fixed, that's from the govt side

Fees / other cost to be incurred for refinancing .....

1. Legal fees
2. Stamp Duty for Loan Agreement
3. Valuation fees
4. Differential sum, if the financing is less than the existing outstanding loan due to lower property valuation.

What is the latest refinance policy gazetted by BNM? Can't seem to find it

Hi all,

Im just have my housing loan offer, but i feel the MRTA pricing is abit higher

Loan : RM470000

MRTA : 1st Person 9800 (cover 100k for 33yrs)
2nd person 9600 (cover 120k for 33yrs)

Tenure: 33Yrs
Total Loan : 489,400
Interest Rate 3.85%

Is the MRTA fee normal for 20k covering 220K?

This post has been edited by ivan0826: Mar 27 2025, 04:03 AM

10 years refinancing for cash out portion.

The mrta coverage sum is not enough for the loan sum.

if fully cover,the MRTA charge RM50K 😓 10% of the house