QUOTE(cassandra tan @ Feb 28 2016, 03:53 PM)
hi there, I am buying my first house and am really confuse about the housing loan that is available out there. My relative recommends me to take full flexi as best way to save interest, but my friends say semi-flexi is better. If I transfer all my monthly salary (RM 8K) into the full flexi current account on monthly basis and then use up about 60% (RM 5K) by month end, does that still provide any additional interest savings compare to semi flexi where say I pay extra 3K everymonth on top of the regular payments ? I am being quoted 4.55% full flexi by hong leong but can get 4.4% from cimb for semi-flexi. My relative also have some extra cash RM 100K which she claim she will help me to park inside my full flexi current account to save interest. I am interested to take RM 500K loan.
thanks a lot for reading my query
Dear cassandra tan,
1. the difference between this 2 packages is as below:
CODE
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
1. To your question, which is better? If you are business people or someone with lots of cash flow weekly or monthly and you have maximized all other financial instruments for highest yield return. You can park it into full flexi account instead of your saving account to save on the interest charges.
Full flexi is more suitable for ppl with big cash flow because there's no withdrawal fees charges for every transaction,
However,
for semi flexi, there's withdrawal charges for every transaction between RM23-RM53. So it's more sensible for employee whom will ony receive big cash flow during bonus preiod or inheritance to credit in cash into semi flexi account.
2.
BTW, you don't need to commit your monthly salary just to save on the interest charges of the home loan. You can do it by paying extra cash for installment every month, this will help to reduce your total interest charges and reduce your loan tenure.
3. Rm500k loan, rate range would be 4.35%-4.5%. However do aware that CIMB has limit for how much cash you can credit into the capital account before penalty charges kicks in.
4. I am certified for most of the banks and if you need any assistance in applying and approving your mortgage loan, feel free to contact me.
Feb 25 2016, 02:21 PM
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