Lots of variable eh

1) Your profession
2) Your Income
3) Debt commitment
4) DSR
5) Ccris debt payment shown
6) current place stayed status
7) Your company
8) Age
9) family/kids...
10) etc etc

Different banks has its own credit scoring, everything matters to them, every details you fill in the form add to your scoring. It's not just due to young age.

May I know how many years you have financed this loan?

and

After refinance how long loan tenure you want to finance?

So that I can calculate if is this worth your time to refinance.

for DSR 78%, only 1-2 banks will accept such high DSR.

40% will be accepted in general by all the banks.

There isn't any right or wrong whether to invest in FD

If you are risk averse, putting your cash in FD calms your mind, investing in shares or high risk assets will give you nightmare every night, invest money in FD will be wise decision. Moreover, Bank giving 4.2% interest that's good rate for conservative investor.

Now the bank rate for property 500k above is 4.4-4.45%, dumping your cash into capital account saved 4.4% in casual saying, but effective rate will be much lesser than 4.4%.
In actual fact, paying higher % installment/month vs putting high lump sum of cash in capital account will yield higher internal rate of return. Time value of money factor.

But still, above is ways for conservative investor to park their money.

If you have higher appetite, the cash that you have try invest it into med risk investment that yield at least 6%.
or
Creative accounting with that lump sum of cash and purchase valued property. As property gets rental and capital appreciation. Anytime is a good time for property investing given that you have the holding period and you found good underpriced valued property.

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BLR not applicable to bank rate, now it is base rate and the effective rate as I mentioned above.

RM500K above loan will get you effective rate of 4.4-4.5% interest.

Just my 5 cent.

Look at the table RIGHT BOTTOM, the max property you could buy are RM290,000 below for 5 banks

Moreover, if your credit card usage is less than 1 years, Margin finance from the bank will be less than 90%, because you are consider less preferred client. Low income, high risk

RM290,000/ 90%/ 4.5%/ 35years
Installment= RM1256.5

This post has been edited by Madgeniusfigo: Oct 5 2015, 12:13 PM

Dear rainderain,

For extra prepayment and whether you need to inform the bank before doing so, it depends.

It is based on bank to bank basis.

If you took Full flexi package, paying extra payment don't need to inform them. You loan account is tied to your current account, hence when you pay installment, it will credit straight into loan account. So you could save interest for every extra $$$ you credit into it.

For semi flexi (Some bank)
Some bank, you will need to notify them before you pay extra, if not it will be credited in advanced account, which will not reduce interest

Some bank, if you didn't notify them, the extra cash credited into the account, the bank will charge you interest. Weird but true

Some bank, don't need notification, it will credit into advanced account and reduce interest.

It is solely depends which bank you are tied to.

I like to explain stuff. So, thank you and no problem.

Hmmm, the details here is very vague, based on this


Any debt and commitment? (borrower)

-Hire purchase loan (Purchased amount)*
-Housing loan (Outstanding amount)
-Personal loan (Credit limit)
-PTPTN (Oustanding)
-Credit card (Outstanding)
-ASB loan ( total Oustanding amount)
- Overdraft ( Credit limit)

Their internal credit department underwriting loans are different across bank.

Subsales, projects selling, who is the buyer for all the units house? BANK

BANKs are the main buyer, they will look at house factor.

They will look at your debt payment track record, usually if you have only 1 debt i your ccris, it will be enough. But really depends on which bank.

They are myriad of factors. Have to look at your document and ccris only can advise more comprehensively.

1) Depends on both of your agreement. co applicant could be your gf, you love her so much and take over the loan payment all by yourself (example). But your ccris will have "J" Status, hence in bank eyes the debt/commitment is split among both of you.

2) 1st property residential 90%, 2nd property commercial 80%, 3rd property residential 90%, 4th property residential 70%, 4th property commercial 80%, 5th property residential 70%

3) There isn't any bullet proof strategy to predict the future of base rate (maybe there is, not what I know of) The best is to chose the lowest spread risk, as spread risk is fixed and base rate is fluctuating. Anyway, I'll go for the bank which offer the best rate and best facility. Rates are unpredictable in the future, all the rates might converge to same basis point or might diverge.

Anyway, new strategy is to keep your financial profile nice and tidy. Good repayment of ccris, low debt, high income, high DSR. Bank will offer you special rate for being such awesome paymaster with low dsr.

can't find your record?

Means you have no debt/commitment.

Hence, they couldn't track your payment pattern at all. they will either reject your loan or slash your margin of finance.

Yes, fine print is written in your loan agreement.

Base rates are rate set within individual bank itself and changes to the rate aren’t directly intervened by the central bank alike BLR. Base rate differed across different banks and the rates are set depending on bank own efficiencies in lending; means to the bank liking itself.

Base rate comprising of:
Base rate(Benchmark cost of Funds + SRR) + Spread (profit margin, operating cost, liquidity risk, credit risk)= Effective lending rate
Base rate + Spread = Effective Lending rate

*We always look at the effective lending rate for our final loan interest charge*

Base rate:
a) Benchmark cost of funds are adjusted by banks itself depends on its own valuation of its lending ability.
b) Statutory Reserve Requirement (SRR) are the minimum bank reserve quota set by BNM.
Spread
c) Spread is the margin of profit that banks set according to the borrower risk value.

Fun facts:
1. Base rate is different across different banks.
2. When OPR adjusted by BNM, Base rate would buldge
Base rate would either stay neutral or increase, depends on bank owns decision. Base rate could even change without OPR altered.
3. SRR is the reserve requirement that bank needs to uphold, set by BNM. It’s a liquidity management. When BNM believes economy is prospering and lack of funds, it may reduce SRR requirement to keep less money as reserves in bank and have bank lend more fund out for economic activities. This lead to higher loan growth. The changes of Base rate can reflect the effectiveness of Government Monetary Policy.
4. Spread are defined according to the borrower risk profile, but spread rate are mainly fixed when display to public, as most of the borrower holds almost identical risk.
5. Base rate will be adjusted every 3 months, it’s same concept as KLIBOR but slightly different. Every 3 months bank has the authority to change the base rate.

Example:
Jan OCBC rate 4.02
April OCBC rate 3.92

6. Spread rate will not change and is fixed till the end of the loan tenure
7. even when base rate is superbly low, the effective lending rate in the end could be higher.

Example:
Maybank: Base rate 3.2% + Spread 1.5% =4.7%
OCBC: Base rate 4.02%+ Spread 0.5%=4.52%
It all boil's down on the spread given, hence do look at the effective lending rate instead!!! Shop around and ask your mortgage agent.

Base rate
Pro
a) Greater competition between banks
b) Higher transparency, as bank will display their profit margin and bank lending efficiency
c) Bank loan rate changes will have a higher correlation with Malaysia market economy and OPR.
d) Better indication in monetary policy changes.

Cons
a) Uncertainty. Rate will change every 3 months’ time.

This post has been edited by Madgeniusfigo: Oct 6 2015, 01:10 AM

able to find, but not prime location. Usually flat will be around that range.
Or
condo which is quite outskirt.

Longer year will be better, cause we take time value of money into factor.
Moreover, the longer loan tenure we serve, the lower the installment.

Since you will be pumping extra cash into loan account, then your total interest paid will definitely reduce.

a

This post has been edited by Madgeniusfigo: Oct 6 2015, 12:52 AM

1)Bank will prefer MNC company, you are at the right track
2) What's your bonus received?

Lets assume your credit card doesn't owe any outstanding.

With your current 3k income, it's impossible to get RM430K property

The max You can get is Rm270,000 property.