Dear,

1. It depends whether the project is under Housing development act, if it's under HDA, developer are required to return booking fees back to client if given the loan application failed. If it isn't, it really depends on the developer decision and subjective by nature.

2. If worst come worst. You are stuck with this property and zero cash flow. Do sell off some property to sustain ur cash flow or living etc.

Dear 3nigm@,

1. Lock in period is almost the same across the bank, except certain bank having promotion whereby sometimes will void the lock in period.

2. Do read the below of the things to take note of.




3. To take note of the default period too, some bank have 60 days default period compare to 90days. 60 days default period will cause your rate to be permanently readjust throughout loan tenure.

4. The amount of credit you can credit into your capital account. some will forbid you credit more than 70% intot he capital account else penalty charges would apply.

Dear,

1. You are still capable of declining the loan offer as stated. Do call up the bank and request for loan acceptance cancellation. They would be penalty and charges applied.

2. Yes, do call them up.

Dear,

1. Do look up on your facility agreement contract, some bank allows you to credit cash into capital account during construction period, some bank doesn't allow. Do look at your agreement.

2. If you credit 10k into it, you save on the total interest. However, tradeoff is, why would you forgo 10k cash to save up 4.5% range interest rate when you can invest in better higher return interest rate.

Dear yfour,

1. in order to be more accurate in analysing your profile to how much loan you are eligible, do provide below relevant details:

Dear,


PMed.

Dear Argiope,

1. non flexi, is it written in the Letter offer as term loan facility?

2. The legal fees of RM3.3K is only the professional fees, it will incur other legal cost including disbursement costs total up should be around RM7-RM8k

3. Valuation fees would be around RM1K, so it's still within the standard budget.

4. Make sure UOB doesn't charge you processing fees.

Dear,

There's a different between this two

1.
Full flexi:

1) current account tied to loan account
2) auto debit from current account at month end and interest is calculated based on outstanding balance minus amount in current account
3) maintenance charge of RM10 per month
4) setup/ processing fee of Rm200 (certain bank)
5)The liquidity comes in the form of an ATM card or a linked CASA account to the housing loan. 
Example: You have a shop that is opened Monday to Satuday, rest on Sunday. On Saturday, you deposit all your proceeds of the week into the flexi account, on Sunday, you would save [(your-HL-interest-rate)/365]*AmountDeposited worth of interest. On Monday, you withdraw the money to run your business
6) Withdrawal of money or crediting of money through ATM,CHEQUE,OVER THE COUNTER, or online

Semi Flexi

semi flexi package typically has these features:
1) requires you to phone in to indicate the extra payment as early settlement of advance payments
2) if you fail to indicate, you will be charged 1% (some banks do this afaik)
3) if you indicate advance payment, no additional interest is saved as "advance" payment will only be credited to your loan account when it reaches your cycle date, so it is plain advance payments. and must be in multiple of your monthly payment.
4) For redrawable prepayments, you need to indicate separately and Redraw charge of RM50 is imposed (M*B charge Rm25)
5) Withdrawal of money or crediting of money through Cheque or Over the counter


2.
Term loan
1) can pay extra but only into early settlement
2) cannot withdraw the cash
Hence it is troublesome to have term loan account, term loan account quite dinasour age for housing loan. Housing loan nowadays more of opting for flexi.

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.

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.

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)

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.

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.

Dear stamp,

1. Interest rate for residential loan will be based on the total loan amount

whether it is
RM200K< 4.6-5.2%
RM300K> 4.4-4.6%
RM500K> 4.35-4.5%

2. Rate for commercial and residential will differ.

Dear Chard G,

I am here to assist you through thick and thin

1. May I know you are opting for land and construction financing?

I would need details before we can proceed or have any in depth discussion with this:

Dear playmobile01,

1. For refinancing, technically it means your loan is with Bank A, and you would like to change facility to another bank BANK B. So you opt to switch your loan facility to another bank.

2. Usually people would opt for refinance when they want to secure a better interest rate, or change from a crappy service bank to a well serving bank

or

they want to cash out altogether with a better interest rate.

3. If you opt to refinance, your cash out amount would be:

Rm310k, 90% margin of finance
(310K * 90%) RM279,000 - rm 150K (outstanding balance) =Rm129,000 (cash out)

You can get cash of RM129,000 for own usage.


4.. Refinance eligibility would based on your current gross income / debt.

Dear qkumba,

1. There isn't any silly question, every question is a question to be answered diligently.

2. For normal housing purchase, 10% down payment is paid upon signing of SPA.

3. Usually if you do a mark up on the SPA price, you need to get consent from the seller, then you need a lawyer to help draft the contract of agreement. Hence, you don't need to pay the 10% DP, seller will wait for the disbursement. Technically, you won't lose your 10% as you didn't pay it.

This is standard procedure, there's other different modus operandi.

Dear,
For own stay can used the investor perspective too. So you can follow as stated from my past posts.

Dear,

1.That's why, appoint a lawyer to facilitate the process. Lawyer will make sure both parties are at fair playing ground, and follow the stiipualted accord.

2. As I say, there's different variation of how people deal with this, it could go either way. So it really depends on mutual agreement between you the buyer and the seller. There's no fixed method for this.

Dear,

Installment will forever be the same no matter how much cash you dump into the capital account.

Your installment RM1400/MONTH, for loan Rm500k

If you put extra RM200K cash into the capital account, installment would still be the same RM1400.

What changes is the interest payable will reduce and the payment to capital would be higher.