Yes loan agreement already signed and pending for stamping. It’s an under development project.

Sifus, seek your opinions and expertise.

Am applying for housing loan and agent is looking at RHB, MBB and PBB.

RHB and MBB is the full flexi loans whereby you put in additional money, it'll reduce your monthly payment by reducing the interest amount. Tenure of loan doesn't change.

PBB-i semi flexi loan is different, whereby even if you put in more money, the monthly installment doesn't change, but more of the monthly payment will be towards reducing principal. Hence, tenure will reduce and overall you save interest also la. Was told withdrawal of the extra funds is possible, without any charges.

I am on the fence here. Whilst PBB interest rate might be lower 0.05%, but I suspect I'd like the flexibility where the monthly installment will be reduced if I put in additional money. (Re)withdrawing the additional money I assume is easy and is free for all the loan above.

What are your thoughts ? Which will you choose ?

I will go with RHB. The flexibility is important for emergencies. MBB i think got monthly fees. If there isn't then you can choose between RHB and MBB. PBB you need to visit branch for a withdrawal (also i think there's a fee). Not ideal. But then again really depends on your amount if RM500k loan the monthly payment is around RM13 extra if your loan is RM3.5mil then the monthly difference is RM85? If you deemed the savings is worthwhile then go with the lowest rate.

So I guess its down to those details of the facility. I'd need to read carefully the offer letter, if approved.

The PBB banker told me withdrawal no fee and can be done online as well, even after I keep asking him "sure ah?". If true, the the flexibility is there. Then its a just question of if I want reducing monthly payments or fixed monthly payments (but potentially reducing term as well).

My amount kecik miao only.. at 0.05% difference I guess its not major.

Do you know the rate they’re offering now?

Haven't gotten my offer letter yet. But the PBB banker said probably 3.8%

Bank perform another round of credit check before loan disbursement is solely to check whether client did any compress loan. Any incremental of credit card utilization will not affect the loan disbursement. Unless after loan approve, u suddenly go loan another house/ploan/car loan, it might affect.

PBB lowest 3.80%. Some go for tiering 3.3% first year, subsequent 3.80%
MBB case to case 3.80%, but usually see 3.90%
HLB lowest 3.80%
RHB lowest 3.80%
UOB depending loan amount, can < 3.80%

Hi sir, you seem to be knowledgeable in this matter so can I ask..

if I want a full flexi loan where if I park more money in the account, the monthly installment/deduction is reduced (instead of fix monthly repayment where more will be towards principal), what bank offers that product ya ?

AFAIK, MBB, CIMB can.
PBB and RHB don't have.

Any other banks can offer that facility with <4.0% interest rate ah ?

Are you sure u park more money into account it actually reduced your monthly installment? Cause AFAIK , it only helps with reducing interest. Monthly installment is only reduced under 2 scenario ; 1-Changes in OPR , 2-Permanent reduction of your principal via extra payment.

Total Loan Amount: RM 777,983
Loan Amount: RM 749,700
MRTA : RM 28,283
Loan Margin : 90%
Tenure : 25 year
Interest Rate : 3.96%
Monthly Instalment : RM 4,090

considered not very good rite?

not good but not bad

Yup, I am sure because that is what we have currently with CIMB Home Flexi but the current interest is 4.5% (signed in 2018). Confirmed yesterday after talking to a CIMB banker that that is the case, currently lowest can get is 4.15%. It is as what you said, more money into account reduces the interest, but in this case it is reducing the interest portion of the monthly installment. This type of flexi loan doesn't shorten tenure, but gives you more cashflow monthly.

Others like PBB and RHB's full flexi loan fixes the monthly payment, but pays more towards the principal if you put more money in the account, whilst shortening the loan tenure.

Maybank's semi-flexi loan is similar to CIMB's, whereby additional payments will reduce the monthly payment, but its a semi-flexi loan. Meaning redrawals/withdrawals need to do over the counter, take few days and got like RM25 charge per transaction.
I believe UOB Combo Mortgage Loan can do like CIMB also, but its not my developer's panel so didnt ask about it.

What should be a good value? Sorry noob here.

3.9% and below

Based on current market, I would say its really bad. For this loan amount, the highest you should be getting is 3.85% , lowest 3.80%. If it's a subsale purchase, you can even go lower 3.80%.


UOB Combo mortgage u can forget about it. It's combination of OD facility with HL (rate above 4%). Not worth to taking even though it somewhat lower your DSR but you pay more interest in the long run.

The reducing of installment, first time I heard. My existing loan is with MBB but additional payment doesnt reduce monthly payment and redrawal can be done via m2u but charge RM 25 per redrawal.

MBB flexi additional payment is reducing interest rite? not payment if i not mistaken. i have taken flexi mbb also but now under construction. additional payment wont save interest also as per banker. need wait till VP then only can save interest if put in extra payment

You're not getting the full correct concept of flexi Mortgage/housing loan..

housing loan repayment consist of Principal & interest, whereby the repayment was calculated based on your loan amount(example 500k), tenure (example 35 years), & interest rates(example 4%). Suppose that you pay according to the repayment amount(repayment is RM 2214 based on the example given), it'll take 35 years to finish the loan.

Out of the RM 2214 repayment, interest is charged monthly based on the outstanding loan amount on daily rest. So for your 1st installment(example on January), interest is RM500k *4%*31/365 RM 1698.63, and principal amount is RM 515.36 (2214-1698.63). Hence after repayment, your principal becomes 499,484.64 (500000.00-515.36). The process goes on every month.


So now come the flexi part,every bank have different flexi loan mechanism. But the basis of charging interest are the same, charged monthly based on daily rest. Technically means, when you pump additional funds into the loan, it'll directly reduce the principal, hence interest charged will be lesser. when your monthly repayment remain the same, it'll resulted in shorter tenure because interest charged was reduced from your additional funds. and yes it'll shorter your tenure, you just not aware of it.

Based on my experience, MBB semi Flexi loan is if you put example RM 100000.00 into the loan, and your repayment monthly supposed to be RM 2214.00, it'll be treated as "advance payment", but this advance payment is eligible to reduce interest (Some bank advance payment WILL NOT BE TREATED AS PRINCIPAL PREPAYMENT, hence wont reduce interest charged). And for the next 45 months (100000/2214) you no need to make monthly repayment anymore, even your standing instruction will stop. untill the whole RM 100k finished deducted then will back to normal.

RHB bank is the most flexi....Literally like saving accounts. You pump into loan now, 1 minutes later you want withdraw out also can. and the monthly repayment of RM 2214.00 still continue, you must continue pay monthly accordingly even you have RM 100k pumped into the loan.

Just beware that some bank have interest capping, means they'll still charged the interest based on the capping. i heard PBB have 30% capping, means loan 500k, max you can pump in 350k(70%) for interest saving, if you pump in more then that, they'll still charge you based on the 150k loan(30% of 500k).example you pump in 450k, loan balance left 50k, bank still charge you interest based on 150k. RHB if not mistaken no capping.

People here seems to sure that I am pulling bullshit out of my ass, lol.

All of you just referencing MBB, RHB, PBB.. which I get it, they are the lowest interests in the industry and thats why most of you / market take their facilities and thats what you are familiar with and what you say is true.

What I am saying is also true, CIMB's Home Flexi (full flexi) that we are actually having, is as I said.. more money into the Current Account, monthly repayment for the Loan Account (deducted from the CA) is reduced (EDIT: if you take out the money, repayment for the month increases). This is a fact that we are facing. I have also talked to another CIMB banker recently about this facility and confirmed its true, and also confirmed the lowest interest rate for this is 4.15%, HENCE NONE OF YOU CHEAPKSKATES even want to consider and so is unfamiliar with it.

Sorry for lashing out, but way to go for putting down someone who just wanted to ask if there is any other bank that offers what CIMB Home Flexi offers.

Go on, go talk to a CIMB banker and tell me I'm right. If you don't have one, I can share.

This post has been edited by chang3rd: Jun 25 2025, 02:15 PM

Yup correct. Reducing interest. Interest calculation is based on the nett outstanding after knock off your extra payment