Subsale RM420k
Loan 378k MOF 90%
No MRTA/MLTA
35 year term
semi-flexi

4.45%

good? bad? ok?

Pros and cons to that. For my own profile, I'd rather assign my life insurance to my dependent and let them decide if they want to pay off the property or do some other thing with the money.

Always remember the banks job first and foremost is to protect themselves, not you...

Assumption: If you have RM3mil investment with the banks and you're taking a RM800k loan... I would expect you can get the best rate.. even without MRTA. But I wouldn't know..I'll check back in a few years when I have RM3mil.

Question. For top-up loan with HLB - existing using the full flexi mortgage plus

1.Is the interest rate according to my existing rate, or is it a new rate?
2.Is the tenure according to my existing tenure, or is it a new tenure (can be longer or shorter, or just shorter?)
3.Is it the same loan account, or i need to open another loan account (troublesome)

I went to HLB and ask, they tell me its a new loan application, 10 year tenure, then I think this is very stupid... better I just refinance with another bank.

Any bank loan officer here? Want to refinance service apartment to my new IHC.

Any bank also can, looking for high valuation with high MoF.

Wow can’t believe got people spewing bullshit like this to scare ppl to think MRTA is “good” and if you don’t take its “disadvantage”.

You selling loans?

MRTA is an insurance, as with ALL insurance, it’s just a tool. It doesn’t mean it is suitable or right for everyone - subject to your family status, dependents, other insurance policies you have.

Basically if you gg, MRTA will pay off the bank.

But if you buy life insurance, you gg, the insurer will pay your nominee. And with cash in hand your nominee can do anything they want.

As an example, your wife and kid is in Malaysia because of you, and your career here. She has no family members here because everyone migrated to Australia. And you have no family members. Only child, parents passed away.

What’s the use of MRTA? Get the house for what? Your wife wants to go to Australia to be with her family, and she needs MONEY.

Sure, she gets the house, then the hassle of selling it bla bla bla. And I don’t know if RPGT kicks in if her name not on the SPA and she inherit it from your will. SO MUCH HASSLE. And she is heartbroken because you’re gone and you give her so much shit to settle.

So don’t be an idiot and NEVER listen to the sales people. Do your own due diligence. Sales ppl only care about their pocket, not you. Oh did you know commission very high for MRTA? That’s why bank push.

That 30k sit there chill do nothing.

Which bank is it may I ask? PBB also have similar full flexi, and they claim because they offer very low % rate. Personally I do not think it is worthwhile.

There’s only best for your use case / situation.

Which is why comparison and study is important. Many people jump into loan without proper due diligence.

A 30~35 years commitment. I am amazed by such people.

Comparison of rates and package - repayment calculate method. I ask every banker to explain to me how their flexi works. This first step allows me to eliminate offers that don’t even worth consideration from me, such as MBB flexi.

Understanding how the “full flexi” actually differs from one bank to another

I do in fact have an excel sheet to collate each bank’s calculation method for their full flexi and formula nett me a number to compare. Very easy with excel.

Tnc is more or less standard across all banks.

This post has been edited by Jason: Oct 19 2023, 01:43 PM

Option 2 is better.

If it’s a full flexi loan. Take the max loan you can (90% or 95%) and the max tenure you can. Then park the excess cash you have to offset principle in the flexi account, then pay your installment as usual.

Depending how much you park over time, the loan can be settled in 25 years or less but still give you access to cash if you have emergency.

This is no brainer even if your goal is to settle the loan as soon as possible.

If your DSR cannot qualify you for 90% of the property’s value. You are over gearing and prepare for bankruptcy if you YOLO that way. It’s beyond your financial means.

Under no circumstances it is wiser to pay more down payment if we are talking about full flexi loan like the ones by RHB.

You may argue, pay more down payment you get lower monthly installment — go back to my first sentence.

Borrowing is simply leveraging. Of course it’s best to leverage as much as you can. In fact, I won’t park excess cash in flexi loan, I’ll dump it in ASM where the returns % is higher than the loan’s interest rate.

I am however, only speaking about numbers.
For people who can’t sleep peacefully at night because they feel stressed cause owe bank 700k instead of owing 400k.. they stressed because every month have to pay bank 3.5k instead of 2.5k.. then that has nothing to do with financial literacy, just your emotional wellbeing.. which in that case do whatever you want that lets you sleep at night, but it’s not financially optimized.

My credit card due amount is 3x my salary every month. But I sleep soundly. 😴

I know for MRTA, the entire premium for the duration is usually priced into the loan. How does it work for MLTA? Same?

Best you talk to your RHB loan officer to explain
If it’s undercon property, you cannot draw excess funds until the loan is fully drawn down.

Sometimes
Some genius buyer disclose to the bank they are getting 10% discount, then the bank will slash margin. PBB is one who will do it.