When was your loan approved?

I think you had better check with your bank.

Edit: from what I know, OD is the facility to allow you to borrow from the loan account. In semi or fully flexible loans, you're only allowed to draw out your excess payment which you put in to offset interest.

For OD, you're given a limit to withdraw, say 500k. If you have zero excess payment, you can still draw out up to rm500k (you borrow).
If you draw out 300k, you kena charged od interest and another unused portion interest on the remaining 200k.
This is based on what i was told. I don't hv OD so I am not 100% sure.

This post has been edited by mushigen: Aug 1 2022, 02:42 PM

I once asked a loan officer whether I still have to purchase MRTA (to get preferential interest rate) if I have insurance with enough coverage (death/TPD) compared to the loan amount. Was told they don't accept personal insurance as my beneficiary has full right not to pay a single sen to settle bank loan if I RIP, compared to MRTA where the bank is effectively the beneficiary if I RIP or kena TPD.

You can ask your bank.

It depends on banks and type of loan (flexi or semi)

For HLB, what I was told is if you take semi-flexi loan, you can only offset up to 30% of remaining loan. Meaning, you put in RM500k but only 30% x 500k will be used to offset interest. The remaining 70% of your 500k pumped in is doing nothing.
For its fully flexi loan, the cap is 70%.

For PBB, for semi flexi there is no cap iirc, but for conventional loan there is a 3-year lock-in period. If you pump in 500k, it means you are clearing the loan and you will incur penalty for early settlement of 2% of loan amount, i.e., RM10k.
For its fully flexi, the cap is 70% of current account balance. If you put in rm500k to the current account, they will only use 30% 70%x 500k to offset interest.

For MBB semi flexi, it's similar to PBB semi flexi. No cap but there is a lock-in period for conventional loan.

Edit: typo

This post has been edited by mushigen: Sep 10 2022, 02:00 PM

Lock-in period refers to the period which you cannot fully clear your loan, or you will incur penalty. Using your example, your loan is 500k. So if you immediately pump in rm500k after loan is disbursed, you're effectively clearing the loan.
Maybank officer told me some clients overpump until they fully paid their loan and the account is closed - some incurred penalty if they fully settled their loan within lock-in period

You can usually pump in extra money regardless of lock-in period. For loan without cap, just need to watch out for inadvertent early settlement.

Residential home loan rates are indeed lower, as told to me by a few loan officers from different bank.

Just for comparison, the normal rate early in this year (before the series of interest hikes) was 2.80-2.85%, with 2.85% the norm. After all the hikes, those with 2.80-2.85 will see their interest rate increased to 3.55-3.60%.

So yours looks OK to a layman like me, especially since your other application is rejected.

I'm curious, which one came first - the approval for this loan with Allianz or the rejection of the other loan?

Yes, you are right.

I think your 3.64% is very good rate.

I asked this question before. The bank staff told me if it's Sgp, they still can consider their documents to be valid (income tax return, provident fund, etc). How high the margin of finance, not sure.

FYI, some banks won't even approve credit cards for those working in Singapore, as experienced by someone I know who doesn't have any ccris record.

Have you considered applying for a no-annual fee credit card but pay RM50 SST per year? This way, your CCRIS will show your outstanding balance as zero every month?

Maybe can try to re-nego with B to give you 3.7%? I'm also curious about the premium difference.

Imho, the job to do a RM1mln loan is less than the job to do *two* RM500k loans during processing and during loan tenure (one set of account vs two, one letter/statement to be sent vs two, and so on).

Maybe discount is also given due to higher profit in bigger loan?

1. MRTA is to cover your next-of-kin (death) or yourself (in the event of TPD).
It's an insurance that only you know or can decide if you can take the risk. It's just like asking "do I need life insurance?" The second question is how much coverage is needed, again only you can decide. Some cover whole tenure and loan. Some take up the minimum required by the bank.

2. Mrta premium can be added to your loan, meaning your loan amount increases as well. To do so or pay lump sump depends on your financial situation, just like how much down payment you pay for the house.

3. Insurance, yes, from all my discussions with various loan officers during my loan application. If yours is a condo, the management would have bought insurance and you can use this instead of buying another one.

Just my RM0.02

In my case, it's in one account - the loan account, which will show your actual loan amount + MRTA premium as total borrowing amount. So, if you borrowed RM500k and your MRTA premium is RM30k, it will show total borrowing of RM530k in your loan account and CCRIS.

Edit: whether it is more beneficial to put the premium in FD vs paying upfront for it depends on how much you would save if you choose one over the other. Really need sifus to calculate whether a 4.1% FD interest is more worth it than say 4% loan interest because the former is compounded yearly or monthly (depending on your FD) and home loan interest is compounded daily.

Also, you need to see whether there is any "penalty" when you decide to close the FD account and dump it into your loan account. In some loans, especially full flexi ones, not 100% of your extra payment goes to offset the principle; and in some semi-flexi loans, you incur service charge when you decide to withdraw this excess payment in future.

This post has been edited by mushigen: Feb 9 2023, 03:05 PM

No, only the minimum to satisfy the bank.

Not a sifu, but what I know is if your monthly cc usage is high (current month's outstanding amount is shown in ccris although it's not due for payment yet), it will negatively affect your score even though you clear your outstanding amount every month.

Personal experience: Yes, but once you have signed up with one bank, the application with the other bank will be removed from CCRIS.

Just need to email BNM about this and cc the person in charge of the loan application. Confirm effective - as advised to me by one of the loan officers I approached.

How do you do that, since the loan amount is fixed at 500k?

Or you intend to borrow less now? Will this affect the interest rate?

Mbb was the fastest to approve my application (iirc 2-5 days), hlb was the slowest to approve despite me already having 2 other banks approving my loans for the same house.

The banks here will approve with a standard offer, then the officer will file an appeal on your behalf for best rate. First approval by hlb ady took so long, can't imagine how much longer I had to wait for the revised rate.

Idk why banks can't just approve it with best rate. Saves everyone the time to file appeal if loan amount and tenure or mrta amount are unchanged.