Read your bank loan letter offer. What it states regarding 'prepayment' ?

In your first question, you are asking whether 10k to reduce loan or invest is better.

Answer ... whichever gives 'more' interest for the 10k only. Doesnt matter if for 1 year or the whole loan years .... just multiply by number of years if interest rate is assumed constant for both.

You oredi answer your own question .... compouding interest.

Even without compounding interest, if investment interest is always higher than loan, eg epf, definite is better putting into epf

And if with compounding interest, if investment interest is always lower than loan, it may not necessary be better off than loan interest.

This post has been edited by mini orchard: Nov 10 2022, 10:59 PM

I doubt pbb take conversion rate into consideration. Try another bank to see whether is the same approach.

I know mathrmatics calculators are available for sale in bookstores or shopee.

Your hp loan is lower risk margin.

Pbb or people say chinese bank is known for their conservative approach to lending. I cant say which bank but you can try rhb, cimb, ambank, affin.but interest rate may not be good.

This post has been edited by mini orchard: Nov 10 2022, 11:30 PM

You can check property portals for some guides on similar property type but again no two properties are the same for many reasons.

Normally seller will start high to lower and buyer from low to higher after sometime. Depending which party is more urgent to sell or buy, eventually one will give in.

A deal is concluded when both agreed to equilibrium.

Seller sell at a price not because banks say so. If buyer cannot borrow max loan, it is his responsibility to pay the diff in cash aka higher dp.

This post has been edited by mini orchard: Nov 14 2022, 10:52 AM

Is your decision whether to sell or hold until the available buyer comes along.

Banks seldom see the potential of the property other than to mitigate risk. The lower the borrowered sum, the easier to sell in an auction to recover outstanding loan and not forgetting the accumulation of unpaid interest.

As a buyer, you view the potential of a property and decide from there. Banks are merely assisting buyers to complete the purchase with minimal risk.

If buyers make good profit from the purchase later, bank wont get anything extra and vice versa.

This post has been edited by mini orchard: Nov 14 2022, 02:14 PM

I dont think the banks just want to know how much savings a borrower has but more importantly, how borrower conduct their account when his salary is credited monthly.

If borrower has no savings for downpayment, the bank will withhold any loan release as borrower has to settle all differential sum ahead.

This post has been edited by mini orchard: Nov 15 2022, 02:54 PM

Bank wants to understand a borrower's savings similar to know a borrower's income from salary slip, epf statement and tax file.

So borrower may wonder why salarly slip is not good enough to verify income but required epf and tax documents.

No agreement can have ALL terms stated.

Only the important terms are in the contract. Other administrative procedures or tnc which are subject to reviews are not incorporated.

For eg, some agreement stated 'Other Costs' are chargeable to borrower but it didnt specify the details of other costs. So is at discretion of the bank to charge or waive.

This post has been edited by mini orchard: Nov 16 2022, 08:17 AM

Cannot comment further on how each bank operate. Nevertheless, there is refinancing options

This post has been edited by mini orchard: Nov 16 2022, 11:24 AM

If borrower take loan from the same savings bank, they can access the account unless is dormant or only few transactions per year.

So which bank from your knowledge dont require attachment ? Your bank ?

For a 30 years loan repayment, interest rate will fluctuate at least 30 times on the assumption once per year with exception for this year.

On the assumption if is low rate at the begining ie less than 4% for first 15 years, then is better to cont with pbb since the principal amount is higher and vice versa.

It difficult to predict the direction of interest rate over long term but a fixed rate will have same repayment throughout the tenure.

If not mistaken, govt loan repayment can extend to your pension.

Depending on your loan agreementt, you will incurred some cost if it still within the lock-in period. Legal fees is sure to pay. For other cost, check with lppsa.

Borrower have to start the repayment after 2 years no matter if the building is completed or otherwise.

Whether pay now or later, all principal sum has to be repaid

Read the LA. It is stated.

But the choice is on borrower.

Banks have option to recall tbe loan and declare the borrower bankrupt if all avenues failed.

In other cases, even if borrower settle principal partly, the monthly repayment seldom change. Is termed early settlement ie shorter years than early agreed in the LA.

Previously, certain banks have 2nd generation loan where the children take over the loan. I dont think they have it now since havent seen any promo by banks.

But do you want your children to carry the 'burden' ?

Buy within current affordability and try to settle the loan early with future increase in income.

Is better to have a small property, settle the loan faster than a lifetime debt.

Paying a loan for 35 years is no easy matter. The very good reasons why so many properties landed in auction

Progressive interest DONT reduce loan amount.

In accounting treatment, when interest is charged is debited to account. When borrower pays, is credited to account. The nett effect is ZERO.

If you pay, then it will offset the loan interest charged. Principal amount remains. Next month, same amount charge and amount subject to 30 or 31 days.

Interest is charged as per 'usage' on principal. If no principal, no interest.

Take full insurance coverage for loan ... loan amount + tenure. Anything less is to borrower's disadvantages.

SPA is between seller buyer

LA is between borrower and bank

Both require a lawyer. One can appoint the SPA lawyer if he is in the panel list of the bank, otherwise one can ask the bank for the panel list.

Legal fees and stamp duty calculation here ..... excluding disbursements

https://www.lowpartners.com/malaysia-law-fi...uty-calculator/

Follow bold answer above

This post has been edited by mini orchard: Nov 24 2022, 05:53 AM