Father age? if above age 65, sorry your father tak boleh become borrower but he can still be a "KYC" customer
this

reason for remortgaging? renovation purposes? no commitment is actually not a good thing as bank do not know your repayment records, but it is not a bad thing la... with a low cash out ratio, you might still have a chance at approval

yes, this is a 3rd party loan

Yes. perfectly normal

1. normally no. even though the offer letter states that there is penalty. normally penalty will incur when u sign the loan agreement. letter offer is fine, for you to lock the rate. the only worry is when u cancel the loan and apply for a new one, the time involved might be lengthen and late payment interest might come to play

2. after approval, it will last for 14 days; after acceptance, it will last for a year or so

nett income below 3000
50%

nett income > 3000 and < 5000
60%

nett income > 5000 and < 8000
70%

nett income > 8000
80% to 90%

above % are against NETT INCOME

*sample only* but fit most of the banks

MBB anytime

3.05 is achievable (subject to good profile)

3.05 is achievable now with or without mrta/ mrtt

IMHO,having some insurance is always good, but insurance bundling is always a bad idea as statically bank's average retention period is 7 years

I disagree.

BR is variable and the spread is fixed. Logically speaking, the lower the spread the merrier as the bank earns u less. The only thing that you need to concern about is the effective interest rate (EIR).

The only way to gauge how far you will be impacted along the line is to look at the Preceding mechanism (BLR) as a reference. Last time banks pact against each other to offer identical BLR (6.6,6.3,6.05 etc etc) except Cxtxbank and a few other smaller banks. Assuming you have gotten an offer of BLR-2 in the year of 2012,

BLR in 2012 : 6.3
EIR is 6.3-2 = 4.3

Now take a look at BNM official website BNM and compare the differences.

All I can say is mbb is the best among all the mainstream banks and CIMB is the worst with a 0.20 or 20 basis points diff.

To put the above into perspective, some of the lower BR offering banks are not really offering a low BLR rate, and history might repeat itself when the new SBR come into play later in this year.

Hope this helps

This post has been edited by kok_pun: Jun 29 2022, 09:51 AM

try looking at Schedule H, i am more interested to know how much is the first drawdown in June 2023, and how much interest you would be paying for June 2023 til June 2024.

Second question: 1 year period for completion of construction? Super developer?

imho, by june 2023 it could be 3.5% to 3.7%, the trend now is 0.25% every 6 months...

MLTA gives you cash back and flexibility and freedom to transfer
MRTA ensures the money is not misused but to offset the bank's debts

to each their own

Assuming the difference in rate is 0.5% by june 2024:

You did not specify the amount of loan taken, but looking at the amount of interest (RM12,388), i reverse calculate it to be rm400,000 ( correct me if I am wrong)

assuming payment is consistent for both bank loan and govt loan (for comparison purposes)

loan RM400,000
tenure 420 months
monthly repayment RM1,771

Bank loan :
interest rate 3.5%
initial interest - RM12,388
cumulative interest in 5 years - RM66,697
outstanding RM 360,437

Govt loan :
interest rate 4%
initial interest - RM0
cumulative interest in 5 years - RM77,243
outstanding RM 370,977

=============================
IN CONCLUSION:
Bank VS Govt

difference in interest:
RM12,388 + RM66,697 - RM77,243 = - RM,1842

difference in outstanding:
RM 360,437 - RM 370,977 = RM 10,162

RM 10,162 - RM 1,842 = RM 8,320 (Bank loan is still better)

maybe due to project limitations...

My take is skip the MRTA.

You can purchase a debts cancellation assurance or top up your existing life insurance.

If skipping the mrta constitute a higher rate, take the bare minimum.

You need to service the loan plus interest to mrta and in case of liquidity, mrta only pay direct to bank leaving you with no extra cash to service the loan instalment during the transitional period upon one’s demise.

High interest rate in MRTA is good.

MRTA is mortgage reducing term assurance.

If the interest rate is low that means the coverage is reducing at a steeper rate. On the contrary if the interest rate is high, that means the amount of coverage will not be decreasing faster and factoring:

1) rate changes
2) annual homeowner general insurance fee
3) monthly service charge rm10

Etc etc. , a higher interest rate provides a better coverages.

Sometimes minimum mrtt also need around 2% of purchase price (a few banks I know do this). Since it is 0.05%, u can just skip it altogether

for middle income level (5k to 10k) this is a quite accurate estimation

for lower income, source of income -23% and 60% (some deduct extra Nett disposal income)

for higher income, the dsr can go up to 90%

there is no fixed method, every quarter there are minor (or major) changes in the lending guidelines

In Islamic contract of sale, the Islamic bank acts upon client’s request to purchase the property on client’s behalf.

The bank then receive contractual payments from the client on the basis of profit sharing.

The profit rate (IBR- base finance rate) is levied on the calculation of each payment

However, in Islamic financing, there must be an element of “certainty”, thus there is a capped ceiling profit rate (CPR), which is the maximum the Islamic bank is allowed to obtain profit sharing from you.

Don’t be worry about the interest of 3x. That is only a “simulation” if the profit sharing is 10%. Your Rate will remain as IBR + 2.00% as of now and unlikely to hit 10% in the near future

1) you should be getting the loan agreement copy after the loan has been “executed”. From what I see, your loan is only executed recently.

2) LPI is levied by the developer to you if there is a delay in payment. Bank will disburse upon developer’s billing according to schedule H. So normally won’t have issues. Anyhow, if there is LPI, u can always request the sequence of events and see who is at fault.

2000 principle and 500 as interest that means 2500 monthly commitment.

If you dump in 500k into a 500k loan, it might trigger force early settlement OR capping on interest saved.

Check your CCRISS, if the monthly commitment is rm2500, you still need to pay rm2500, not rm2000.

Back to your question, The 500k will knock off the monthly interest, but all your rm2500 will go into the principle payment instead of rm2000 into principle: rm500 into interest.

Hope this helps