The most important thing that Islamic Housing Loan needs to clarify is the concept of Early Settlement.

The Earlier / First Generations of Islamic Loan did not allow for Early Settlement and the Borrower had to pay the Full Amount even if the Loan was settled early

There was a case that even went to Court and the Courts ruled in favour of the Borrower.

Since then, I was told that Islamic Loans was changed to cater for Early Settlement but how is it in practise, is it the same as a Conventional Loan, perhaps our Consultants here can clarify

Agree, but such good terms are only offered to selective customers.

I got friends that was offered full flexi with no lock in from both RHB and CIMB.

The Loan was in excess of RM1.5 mln+++

Rate was BLR less > 2.5x%

AFAIK, BNM rules state that the max LTV for the 3rd and subsequent Loan is 70%. Based on this, it does not matter what is the LTV of the First and Second HL, whether its 90% of even 50%.

Also, it does not matter what is the remaining principal amount, you may have only 10% left for the first 2 HL, the 3rd will be capped at 70%

But lets wait for our other sifus here to explain. I could be wrong.

This question, we will need our sifu wild_card_my

This 1% Commitment Fee is imposed by almost all Banks in MY (to add on to wild_card list is RHB, Public, Affin)

Even for HNW the Banks also charge the 1% Commitment Fee, for Super HNW I am not sure but my contacts with very big facilities (in the hundreds of millions) also get charged 1% Commitment Fee for their undrawn OD

Bro., what is the stage of your auction property.

For auction, normally u must be sure u can get loan before u even want to begin, cos if u fail to get loan, whatever monies u pay is burn.

Assuming your RM606K loan is about 30 yrs, the instalment should be about RM2.8K and plus your car, your total monthly loan instalment is close to RM3.6K

This is already almost 50% of your net pay.

Plus the new loan instalment of say just 1k, total will be close to RM4.3K to RM4.5K which is like 80% to 90% of your net pay.

This type of DSR is too high as u will have nothing left to eat.

Of course u can argue that in 3 years time, your car loan would be fully paid, salary will increase and perhaps the auction.house will be rented out.

But banks may give loan based on.worse case scenario.

But let's see what wild card says since he is the sifu. I am just a pessimistic borrower.

Hope your Loan and purchase will go through.

Where dis u buy the auction property. Can share some details for our learning.

This post has been edited by cfa28: Dec 13 2014, 10:09 AM

Bro, banks are not in favour of Guarantor route anymore, unless your Guarantor is Super Rich.

Joint loan with your spouse is your better bet, bear in mind, auction property follows certain time constraints that the successful purchaser must follow, else u lose your deposit

Plox, some info on your mum and proposed mechanism.

Is your mum still working.

Are u planning to take joint loan


If based on your sole income of RM2.5K, the Loan is rather small, but you can stretch to max 35 yrs

Do also bear in mind that you will not be able to take a car loan for many years until your salary increase substantially.

Our sifu is sensing many opportunities for bargain buys and preparing the bullets

i though for semi-flexi loan not withstanding how much you park back, you must pay the agreed monthly installment which is based on RM500K

Cos when u pay such amounts - there are 2 ways to classify it

a) Advance Payment - which will deduct auto every month - but advance payment does nothing. Does not reduce interest

b) Principal repayment - reduce Principal Sum and thus interest is tjen calculated based on new principal sum but min monthly payment is still based on RM500K as per LO


This post has been edited by cfa28: Dec 18 2014, 03:32 PM

Thaikor, I live in a very modest area only South of KL

Sure you wanna come here from your current elite place

Bro, can you elaborate on the stamp duty, 0.50% of what loan amount are we talking about.

Is there is real need for stamp duty, new Agreement being drawn up? No Legal Fees?

Sorry bro, for benefit of others, I have to ask specifically, if top up to new Market Value, I understand Valuation required.

How is the Stamp Duty calculated, on new Loan Amount?

Say Original Loan Amount RM500K

Current Principal P/S - RM300K

Market Value - RM700K

I have to disagree on the interest savings part.

No doubt that

1) Interest on Car Loan is fixed in nature
2) Interest in higher upfront - due to Rule 78 Calculations

but you will still get some interest saving as you will not be charged interest from the day you settled your Loan until the original expiry date of the Car Loan. You still save but much less.

Try this link for savings on Car Loan

http://autoworld.com.my/v2/tools/loan_settlement.asp

In the end of the day, its to to with your Cash Flow. Cos if you Refinance, the repayment is stretched over a longer period

Just my personal opinion.

If you are changing from Semi Flexi Loan to Fully Flexi Loan, this may require the signing of a New Loan Agreement which in turn attracts Legal Fees and Stamp Duty on the Full Amount

Our Mortgage Experts seems to be still away, lets see what they say.

You can also call up your Bank Branch.

Am sure they will also be happy to assist

Peri2 is a HNW person so any loan he takes will get good rate

RM190K Loan, normally cannot get BLR - 2.40%, closer to 2.0%

Bro, you missed out a few important things

1) What was your original tenure

2) What is your current Principal Loan O/S

u wanna lower your instalments but are you also looking for extra cash ??

for commercial Banks - its a ZERO chance of HL > 35-years. If any Commercial Banks is offering, their competitor will complain to BNM

MBSB has agreed to voluntarily comply with Responsible Financing Guidelines which limits to 35-yrs also

Shadow Banks like

Bank Rakyat
Agro Bank
BSN

its possible, but suppose it has to be done discreetly also

Hmm, our resident Mortgage expert must be too busy. Early in the year, must chase for Budgets.

AFAIK, Biro Angkasa Loans are calculated on a straight line basis. Hence, although it may be stated as say 4.0%, the actual effective rate is much higher.

http://loanstreet.com.my/calculator/flat-t...calculator.html

Angkasa Loans are also capped at 10-years due to directive from BNM. Hence, the monthly repayment is also much higher.

As for how they will collect, you will need to check with Angkasa. In my opinion, everything should be clearly stated but the rates might be higher and/or you will have to immediately pay off the balance.

You can check with some Banks whether they provide Loans to build your own house. If the nornaal commercial Banks do not provide, you can check with the Shadow Banks like Bank Rakyat, BSN, Agro Bank, etc. They should provide such Housing Loans with longer repayment tenures.

Pajak means to ‘pledge’ or ‘charge’ your asset. So effectively, when you take a Housing Loan, you will have to pledge your House (and also you Life) as collateral to the Bank in order to obtain the Loan.

To the Bank, there is no difference cos if the House has been fully paid and you wish to “Refinance”, you will have to pledge the House as Collateral for the new Housing Loan.

Is the house in question fully paid?

Are your parents still working, what are their age

What is your age, are you working?

Hope Faiz wild_card_my comes back quickly, so many questions for him to answer

This post has been edited by cfa28: Jan 15 2015, 10:49 AM

Welcome back bro. Of course work at hand (that feeds the family takes priority). Was concerned that you were potentially caught up with the floods that caused your absence.