Welcome Guest ( Log In | Register )

3 Pages  1 2 3 >Bottom

Outline · [ Standard ] · Linear+

> Mortgage Loan Package Inquiries, (Strictly NO Promotion Allowed)

views
     
diners
post Jul 7 2015, 10:20 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
Just applied mortgage loan for my new house. While pending for approval im very frustrated about the MRTA thing. Some said must buy MRTA cause lessen burden to family if I suddenly byebye. Some say don't buy from bank buy outside. Some say only buy few years enough. I don't know what should I do.

As of now, I asked the bank to incorporate MRTA into my loan and cover full tenure of 35 years. Wise? Since they said if I settle earlier I still have "some" surrender value.

It's my first home and probably not for investing.

This post has been edited by diners: Jul 7 2015, 10:25 PM
diners
post Jul 7 2015, 10:30 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(wild_card_my @ Jul 7 2015, 10:26 PM)
It depends on what you need, there is no right and wrong answer. Only unpleasant results.

When you make the decission, please base it on the right information. For example, what is the surrender value? Do you know the exact amount?

Also about the 5 years is enough... it is only enough if you are planning to finish paying the loan in 5 years. WHy?

Lets say your loan amount if RM500k, and you plan  to finish paying it in 35 years. You took 5 year MRTAbecause some smart banker said it would reduce your rate, sure. It may well reduce your rate, but you are now unprotected. Why? Because the MRTAcoverage would reduce from 500k to 0 within 5 years. What happend if you (touch wood) die on year 4? THe bank would cover very little of the loans outstanding and your family would need to pay a lot to keep the house.

35 years would be the better bet, but you can also take MLTA which is covering and attached to you, and not the loan. Regardles sof the loan being settled or the house sold, you would stil have the insurance. It cost a little more the MRTA, though MRTAis usually included into the loan and you would pay the interest on that. Up to you, but make the decission based on the right information.
*
I think my move with 35years covered will be better choice. Regardless of surrender value i just don't want to burden next of kin if anything happened to me. Surrender value or not I think once the property price is up, everything is covered. Hehe
diners
post Jul 18 2015, 10:49 AM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
I have 3 questions.

Q1.
can someone do a simulation for me on the loan servicing thing?
like how much i need to pay to service the loan until VP?
eg, the house price is 400k. loan 360k, 4.45%, 35 years, semi-flexi. assuming i know that i need to start servicing the loan wef jan2016. how does the calculation goes?
there's a standard table of the % like 10%, 10%, 15%, 10%, 10%, 10%, 5%, 5%, 5%, 12.5%, 2.5%, 5% right?



Q2.
say for example i take the loan of 360k, 4.45%, 35 years, semi-flexi from UOB. my monthly instalment is approx. RM1693. If let's say I pay RM2000 a month for the instalment, where does the extra RM307 does? To reduce the principal or to service the interest? any simulation?

Q3.
I understand that i can request the bank to say that I want to start paying my instalment BEFORE VP. is it a good choice? according the bank agent, i can do so when the bank had disbursed around 50% of the money to the developer. this way, i can start to pay instalment instead service the interest (it would paying like, double interest right?). but i dont know if it's a wise choice?

This post has been edited by diners: Jul 18 2015, 10:53 AM
diners
post May 14 2019, 08:58 AM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
Not sure if ask here will kena flame or not. Tried to search high and Low but could not find much supporting suggestion to help me make decision.

Cause no point asking the bank, they will say theirs is the best. 😂

Bank A - 3.93+0.32 = 4.25%
Bank B - 3.05+1.20 = 4.25%
Bank C - 3.52+0.63 = 4.15%

1. Is it stupid if I don’t take Bank C straight away?
2. If to consider Bank A and Bank B, which one is better for me? Lower BR or Lower spread?
3. Anything else that I have missed out?

To take note, all semi-flexi and I’m happy with their services.

🙏 3 offers but in a conundrum which to accept.

This post has been edited by diners: May 14 2019, 09:01 AM
diners
post May 14 2019, 02:56 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(coolguy99 @ May 14 2019, 12:18 PM)
Any idea on which of the 3 banks have revised their base rates due to OPR and which has not?
*
the 3 rates that i provided are revised BR after lowering of OPR.
diners
post May 15 2019, 08:26 AM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(khieni @ May 15 2019, 08:07 AM)
1) you need to also check the bank facility, like OCBC semi, to withdraw money you need to go counter... The convenience to bank in extra cash or redraw money is important...

I am not sure details on semi because I go for full flexi..
The logic behind, if my monthly salary is rm5k, I put into full flexi home loan for 10 days before paying other commitment like credit card and hire purchase... Interest 4.5%...i can save monthly interest RM6 for this 10 days... You can say monthly maintenance fee is rm10... But the math you can calculate based on your situation....

2) BR or spread.... Yes... I do research and found out...
Bank BR trend and the bank COF are very important compare to spread alone...

If you see MBB, for the past 4 years since BR implemented, the BR is steady with BN OPR... If BN raise OPR... MBB only raise... You compare with HLB.... Without changing of BN OPR... HLB already increase around 2 times....

You may unhappy why MBB charge you higher spread for their profit margin.... But I believe this high spread used to maintaining the bank facility... BTW, PBB BR also quite stable, following BN OPR decision... If you see RHB COF got increasing rate... That's why I guess they have to increase BR in April...

Imaging if OPR increase 0.1%, MBB BR increase 0.1%, will other bank increase too... Surely increase 0.1%.....so no difference if you choose any bank in term of ELR....

You see, if without OPR change, RHB or HLB increase BR to cover the COF... Let say 0.1%...now your HLB or RHB ELR is higher 0.1% than MBB.... Because MBB is so steady didn't increase BR because the BN OPR is maintained...

Anyway, if you got a lot of extra cash, increase 0.5% in your ELR does not seem so much different... You can simulate it and play around the figure...

Hope my philosophy clarified... BR trend is important for the past few years
*
Thanks for you inputs on flexi loans. Will consider it.

Yesterday went to request the PDS from the 3 banks (and boy you got all of them correct!) to compare the COF. I agree with you that PBB and MBB are stable compared to HLBB. I think I had made my decision. Thanks!

diners
post May 15 2019, 05:44 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(khieni @ May 15 2019, 05:42 PM)
I have been told by HLB banker their BR also dropped 0.25
*
yeap. was suppose drop 0.20 then today drop another 0.05
diners
post May 18 2019, 12:29 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
i am meeting my bank agent to sign LO tomorrow, while she shared with me the LO soft copy.

I saw a clause that i have some concern, it reads...

"the bank has the right to vary the loan pricing i.e. the interest spread and/or BR in accordance with prevailing BNM guidelines"

they can adjust the spread, while i thought is fixed throughout the tenure?
diners
post May 18 2019, 03:41 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(coolguy99 @ May 18 2019, 03:18 PM)
Nope they can adjust the base rate anytime. For example if the opr increases or decreases.
*
Thanks. But how about the spread - I thought it should be fixed?
diners
post May 20 2019, 10:59 AM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(Vintage_X @ May 20 2019, 12:55 AM)
Mind sharing what’s your final decision?

1. What’s the effective interest rate?
2. Full or semi flexi?
3. Did it include any MRTA/ MLTA/ OLTA?

BTW, what is PDS and COF? Sorry for asking so many questions as I’m also considering taking a loan with MBB or PBB. Many thanks!
*
signed my Letter Offer yesterday, sealed the deal with PBB at 4.15%, semi-flexi (cuz i dont have much cash running around anyway laugh.gif ) included OLTA.

OLTA is a little bit pricy but i am fine with that, it's within my budget. i also met with my insurance agent later the day to buy MLTA separately. so if anything happens my MLTA+OLTA=covers the house+extra leftover for my family.

PDS = product disclosure sheet.
inside PDS, there is COF (Cost of Funds), this determines the BR of the bank aside from BNM's OPR.

you can study the COF and see the BR trend of the bank. i see HLBB have fluctuations, MBB and PBB are quite stable (at least following OPR).

let the lowest ELR wins.
diners
post May 20 2019, 01:06 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(lifebalance @ May 20 2019, 11:51 AM)
BR fluctuates while the spread is Fixed.

Spread will be varied once you don't abide to the Letter Offer T&C
*
Yeap - got the confirmation from my banker that this clause is to support should I default or never pay within the timeframe.
diners
post May 20 2019, 03:26 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(dannychen @ May 20 2019, 02:53 PM)
such a good deal. may I know your loan amount?
*
my loan amount 520k smile.gif smile.gif

so happen when applying for loan, BNM announced the drop in OPR.

according to the banker(s), it will increase the spread to meet the ELR up to around 4.4% +- after awhile to meet back the market.

This post has been edited by diners: May 20 2019, 03:29 PM
diners
post May 20 2019, 03:28 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(Vintage_X @ May 20 2019, 03:21 PM)
Thank you for the prompt response!

According to my PBB banker, if you would like to make part settlement if you have extra funds:

Full flexi
- you will need to incur at least 30% of the required interest
- no withdrawal fee

Semi flexi
- no such requirement with semi-flexi
- withdrawal fee of RM25/50
*
Yes yes, you are correct.

but for me, i'll reduce my tenure by paying monthly commitment+a little extra every month and when i have increment yearly. withdrawal is RM50/transaction at denomination of 1000s, i think it's once a month (for semi flexi).
diners
post May 20 2019, 03:52 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(Vintage_X @ May 20 2019, 03:35 PM)
How many years is your OLTA?
*
200k for 20years, premium around RM5k one-off smile.gif
diners
post May 21 2019, 06:30 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(WahBiang @ May 21 2019, 05:57 PM)
Some queries regarding housing loan.

1. Assuming I have 3 housing loan with all under residential title, at 90%, 90% and 70% margin of loan respectively.... if one of the 90% loan house was sold later on, would I be able to get the next new loan at 90% margin (since the remaining loans are at 90% and 70% margin)?? or it will be at 70% margin again (as it will be the 3rd loans)??
2. With the recent reduction of OPR, the banks reduced the BR, but would they increases the profit loading? Since the effective rate is BR + y%, BR drop, but bank would bank up the y% for new loans and causing the effective rates eventually unchanged??
*
One of the banker told me after the decrease of BR. The overall ELR will decrease too. But after awhile they will increase the spread (if you haven’t signed) to meet back the market average. Not sure how valid is this statement.
diners
post May 21 2019, 07:27 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(WahBiang @ May 21 2019, 07:04 PM)
yeah, that's what I thought too... old loans enjoyed lower rates, but new loans higher rates...
*
my real case scenario was this...

follow by timeline
-banker verbally say is 4.45% (3.25+1.2), while processing for loan
-BNM say OPR -0.25
-banker say my loan now approved and is with the lower 4.25% (3.05+1.2)
-banker told me that if the offer lapse, the new rate will be back to 4.45% (3.05+1.4)

but i ended taking something else at 4.15 tongue.gif
diners
post May 27 2019, 03:22 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(Lescotesco @ May 27 2019, 02:34 PM)
loan approved from few bank but so far hong leong and mbb rate is the best.

if mbb hong leong both same rate which 1 will u guys choose? (ignore the part that hong leong give me discount to 4.03 for the first 2 years)

MBB BR 3+1.25 =4.25
hong leong 3.88+0.37 =4.25

based on this can i say maybank is better? because hong leong charge such low profit to customer and once they cant cope then the chances hlb increase br is greater than mbb?
any1 get 4.15 from mbb before?
*
i get 4.15 from pbb.

i also got offered by mbb and hlbb on 4.20 (with MRTA suiting my needs, premium around 2k+)

but looking at hlbb's BR, they fluctuate more compared to mbb though.
diners
post May 27 2019, 06:03 PM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(Lescotesco @ May 27 2019, 05:47 PM)
true, but now mbb is already so low at 3. the most i can hope for is for them to maintain stable. while hlb got more room to reduce compared to mbb right?
*
true, but from what i see is that HLBB would normally increase BR prior to change of OPS so.... you make the call blush.gif
page 3 - https://www.hlb.com.my/content/dam/hlb/my/d...re-sheet-en.pdf

it all ends up which one have a better service, like MRTA premium, lock-in period and etc etc (if that matters( blush.gif
diners
post May 28 2019, 08:29 AM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(Lescotesco @ May 28 2019, 08:12 AM)
wow i guess i will go with mbb then, mbb is much more stable.  3.20% (2 Jan 2015) => 3.00% (15 July 2016) => 3.25% (29 Jan 2018)

how much is ur mtra premium? maybank is around 5k for 500k 10 years. hlbb is not compulsory so i didnt plan to buy as well.
*
I requested from the below MRTA of respective banks,
HLBB - insure 200k for 20+4 construction years, premium RM4k++
MBB - insure 200k for 16+4 construction years, premium RM3.5k++

I ended up with PBB taking OLTA, insure 200k for 16+4 construction years, premium RM5k

Reason PBB lowest %, and OLTA does not reduce throughout 20 years and I can add-on MLTA from insurance company so it fits my requirement. Hope it helps ☺️

This post has been edited by diners: May 28 2019, 08:30 AM
diners
post May 28 2019, 09:03 AM

Young Dipertuan
******
Senior Member
1,484 posts

Joined: Jan 2007
QUOTE(Lescotesco @ May 28 2019, 08:52 AM)
which insurance company u use to add on mlta? i am planing to do that as well since bank doesnt really offer good package. thanks it help alot for my reference.
*
PM-ed you biggrin.gif biggrin.gif

3 Pages  1 2 3 >Top
 

Change to:
| Lo-Fi Version
0.0468sec    0.48    8 queries    GZIP Disabled
Time is now: 29th March 2024 - 03:05 PM