Dear Sky.Live

1. Your point is right except for the interest rate part.

2. Interest rate would be the same, no matter you are taking term loan or flexi loan. Interest rate would be the same.

3. Term loan is more of an older product. Flexi is more of the choice of modern world.

Sounds good enough

You need to check the loan whether it's a term loan or not and how is the principle deduction calculated. Going through your letter offer will tell you what you're in for.

If you're a salaried person then a semi flexi loan would do.

If you're a businessman and have a huge cash flow then full flexi is better.

interest rate is the same, just that the facility of the loan is different. as my explanation above will help you to do a decision.

Feel free to let me know if you need loan application

Thanks! I haven't received the LO yet so i can't tell. But if i do not have a lot of idle cash, flexi/semi-flexi or term also doesn't matter, right?

Thanks! I shall stop shopping and wait for the LO then.

If you don't have much cash idle then picking any type wouldn't be much of a difference.

Dear,

1. The best is always be prepared for any emergency or needs. If you are given choice, definitely chose the one with the most benefits and advantage. IMHO, I would take flexi instead of term loan.

2. Hard to tell, sometimes we would inherit massive cash, inheritance, Bonus or lottery.

If one can afford the down payment, should we borrow to the maximum or pay as much as down payment as possible? Which is the best practice?

If you're a good investor then maximum loan is advisable because you can get other returns higher than the loan interest rate. Otherwise higher down payment is possible to reduce interest by taking a full flexi loan to reduce your interest while looking for opportunity

Dear echoesian,

1. it all boils down to your financial planning and your objectives.

2. For my point of view, I would suggest you to take full loan,due to time value of money, higher alternative investment yield, leverage game and higher cash flow.

A. TIME VALUE OF MONEY.

the money you had right now lets' say RM200K is worth more than Rm200k IN 10 YEARS TIME. Hence, it's better to pay off installment slowly instead of one lump sum.

B. Higher alternative investment yield.

You could invest the RM200K into other investment instruments that yield 5-10%, instead of paying downpayment that would save you around 4.4-4.5% of the interest charges. If you have asb, then invest into ASB.

C. Leverage game

In this economic world, most of the rich and powerful plays leverage game to increase their net worth. They leverage using other people's money via loan from bank, lowest loan charges and invest into other higher potential investment yield with other people's money.

D. Higher cash flow

You could have use RM200K for different type of purposes, for emergency, for investment, to invest in own education, buy a new car etc etc etc. You could park the RM200K into full flexi account and withdraw it whenever you urgently need it.

3. Just my succinct point of view. (don't take me too seriously)

Example if I wanna buy sub sale about rm6-700k, down payment s&p and lawyer fees all can included in housing loan?

S&p portion must be borne by you. The loan agreement legal fees can be finance with the bank loan.

If you need help with loan application feel free to let me know via pm or whatsapp

Dear Splinter,

1. If you purchase subsales property. There's entry cost of

a. Legal loan
b. Legal S&P
C. MOT
d. Stamp duty loan
e. Valuation

2. To include entry fees bundle into the total loan amount, only Legal loan and valuation are allowed. usually banks allow finance up to 2-5% of the purchase price.

Thanks..

Just got my first approval from HSBC, 4.5%, shud be a fully flexi loan.
Ambank on the other hand said there is a RM10 monthly charges for full flexi loan, therefore I am opting for semi flexi, don't think I will need the liquidity.

Congratulations on your loan =)

I'm buying this for own stay.

If you plan for own stay and plan to pay it off early or having extra money at the same time. Opting for full flexi is helpful as you can put in your extra money so you can reduce your interest at the same time reducing your loan tenure.

EPF 8% later means we can get higher net income...

does this mean we have more room to borrow more?

yes you can say so. Just that you get lesser savings in your account 2 later on.

Additional 3% nett income.

Dear,

Assume monthly basic salary is RM4000
If your monthly EPF contribution is 11% ( RM440 ), taxable income = RM3560, income tax payable = RM77

If your monthly EPF contribution is 8% ( RM320 ), taxable income = RM3680, income tax payable = RM109

Conclusion : If you choose to contribute 8%, you will end up paying more income tax to the government, which will make the government richer.

Finance Minister Najib said this measure is meant to boost up the slow-down market, but from this example we see that the money does not go into the market.

Instead the money goes direct into the government's pocket through the greater amount of income tax that we will have to pay.

2. However, this does boost the income but bank still using the same calculation of deducting 11%. So till bank readjust the policy for calculation part, still the same.

Hi Guys,

First time posting.

I'm actually looking for an impartial Mortgage broker, one who wants my business and replies to emails.

Quite happy for recommendations from anyone.

The mortgage would be for a new build with plans already approved in Nilai, land loan is currently with CIMB but took ages to sort out, so open to ideas.

Thanks smile.gif