TQ for the answer guys! Really helpful.
Yup mine is landed house. HLB

Sure no problem, just make sure to keep your fire insurance updated to the current market value of your house otherwise you won't be fully compensated on the full sum assured.

It is ideal to keep the sum assured at least 80% of the current market value otherwise any amount lesser than that would lead to the pro-rated compensation upon claim.

I am looking for Maybank conventional home loan package.

Please let me know the current offer and eligibility
TQ

MBB Offer 4.3% only now, for loan above 500k, 4.2% is only applicable before the BR decreased last week.

Are you sure 4.2%? MBB offered 4.35% before the recent rate cut. Today i heard that MBB offered 4.35 after their announcement. They reduce BR from 3.2 to 3.0 but increase spread from 1.15 to 1.35. I'm a bit of confused, i thought bank cannot adjust spread. It should be fix. All the adjustment has to be from BR. If this is the case, the spread and BR are meaningless. Do they have a guiline from BNM to follow? Any sifu can advice.

Before the BR decreased. Old application were entitled to the reduction. So 4.35 became 4.15. But moving on after Friday the new application lowest is 4.3% so those applied before the BR decreased benefited.

Dear,

1. I not sure above AIA where he get 4.2% interest rate, it's quite far fetch.

2. For maybank, the best so far for now is 4.3%

As I have mention, 4.3% dependent on how well is your financial profile and is it within the target segment of the bank. Maybank love MNC, employee getting fix income with low debt gearing ratio

3. Bank able to adjust BR and spread, however, people who has loan with the bank itself already, will be subject to BR changes, hence when the spread rate increases, your interest increase with your installment.

4. New borrower could get a lower interest rate due to lower BR, but not so much as bank tend to adjust the spread rate up.

Cheers

This post has been edited by Madgeniusfigo: Jul 21 2016, 06:27 PM

point 3 is so misleading. It is the BR that is adjusted not the other way round.

Double posting

This post has been edited by Madgeniusfigo: Jul 21 2016, 06:26 PM

I thought spread is fix... Like that banks have 2 parameters to adjust the effective rate compared to last time. Whats the point? Can we log a complain to BNM?

Dear,

Sorry about that,

Typo.

1. Fixed rate is fixed throughout your loan tenure

2. BR will affect your effective lending rate throughout

Cheers

Dear

Thanks for pointed out, sorry for the typo, has corrected it.

Cheers

This post has been edited by Madgeniusfigo: Jul 21 2016, 06:35 PM

That's why I said his statement is misleading.

Spread is fixed once loan is confirm, only the Base Rate changes, which is why the MBB BR 3.2 + 1.15 was decreased to 3.0 meaning new rate was 4.15 for those who applied previously before the BR announcement on decrease. Now when new applicant apply for loan, it will be BR 3.0 + 1.3%, see how MBB has altered ? although BR decreased but spread can be manipulated before the loan approval.

The bank can't simply increase a spread once a Loan is ON-GOING. Unless serious circumstance that the bank is drastically losing money, they have to issue a sub-LO to negotiate with you.

The Spread can be altered by the bank only during the loan application stage before they decide to offer you the loan.

This post has been edited by lifebalance: Jul 21 2016, 06:32 PM

You understand my point. This is for new application. I don't see the logic behind of this new calculation. In both scenario, rate increase or cut, banks have 2 parameters to adjust the effective rate. Whats the point of BNM CUT the rate. From what I see, the new calculation is bias to bank and not consumers. Fuckup system.

There is pro and con of the system but at least the market interest rate is determined based on the competition between banks so the interest rate would definitely not fluctuate beyond unreasonable as another bank will take advantage and promote a lower interest rate. In this free market, it will also bring advantage to the borrower as the banks continue to compete and offer a better rate/package. Of course at the flop side, the system might not be 100% perfect or ideal for everyone.

The bank will wait for other banks to take action. ..... Its better to go back blr calculation, the new systen is meaningless....

anyone know regarding hong leong bank? i get bank loan, banker say can put in advance payment which to reduce interest payment monthly. this advance payment got no monthly fee, can take out any amount anytime at $50 charge. like got so good benefit? i mean i can just simply put all my money inside advance payment, emergency need use cash only pay $50... any hidden thing to prevent??

This is a semi flexi loan meaning you didn't maintain a current account with Hong Leong Bank. So you are allowed to deposit advance payment into the account to reduce on the principle.

But upon withdrawal, you need to pay RM50 each time. No other hidden cost, this is the loan package feature.

Hi,

1. This is a semi-flexi loan package, every withdrawal will have a charges from RM20 to RM50.

2. If full flexi loan package, there will be a fixed charged of RM10/month even how many times you withdraw.

3. There is no hidden charges in between.

CHEERS

Hi Sifus, May I know how bank calculate the progressive interest ? If we dump in extra money during construction period will this help to reduce the progressive interest ?