Try calling the hotline and ask them in this case.

Will need you to reveal how much you loan, tenure and interest rate.

1. The monthly profit is actually the monthly interest payable to the bank, it is the portion that the bank will register as operational profit.

2. When it comes to mortgage repayments, this is the figure that the banks are most concerned about - because they must get their profit on time, to run the bank efficiently. 

3. The installment is a combination of interest payable AND principal repayment. So while your installment is RM3.3k, the bank's profit (interest) is RM2.6k, and the remaining is your principal repayment (RM687)

4. If you look at the examples below, the portion of the installment used to pay the interest reduces, while the portion used for principal repayment increases as you pay your installments down the months and years

5. So please pay RM3.3k a month to prevent your tenure from being extended beyond the original 35 year tenure (assuming that was the original tenure)

This is an example of what I am talking about, notice that the RM2.6k is for the interest (profit) only? So again, please pay the installment in full:



Don't need to be too specific. The TS's concern is why the bank only wants the profit payment of RM2.6k, and not the full installment (that the TS is aware of) of RM3.3k... so a better answer would be to illustrate how the installment is broken up between interest and principal repayment... the full details such as the tenure, rate, etc. are not too important to illustrate the answer. In fact, it can only get in the way of answering his questions.

Profit means interest in Islamic banking. Loan amortization will indicate interests repayment of RM 2637.79 and principal repayment of RM 666.21 from your monthly installment (RM 3,300). As time goes, your interests repayment will be lesser whilst principal repayment starts to go higher. This was due to housing loan interests are on daily rest.

Hence, do follow your monthly payment of RM 3,300 instead of interest payment from SMS to remain your diligence payment behavior. Or else, you will see missing payment from your CCRIS report which may affect your credibility in your near future application.
Basically you are making interests payment only for 5 years, however you may opt for full installment instead of interests payment.

Concept is how you purchase an undercon project, making interests payment in 5 years tenure at first. From 6th year onward, you'll be liable for full installment for the rest of tenure, capped at 30 years (given max tenure of application is 5 + 30 years)

If you select interests payment only during first 5 years, your total interests repayment will be slightly higher than choosing full installment from the start.

I will suggest you to contact CIMB to make arrangement to make the payment  of RM3,300 instead of the profit interest only. Otherwise your principle amount will not reduce overtime and your loan outstanding will not reduce at all.

=)