1) I want to refinance my house, which bank now offering the best rates?
2) The legal fees absorb by bank or me?

Thank you very much.

Calling wild_card_my to advice

Thanks CFA28 for the summon


1. The rates depend on the loan amount, generally, and I said this without guarantee, HLB and AMBANK are giving more competitive rates. In the end of the day though, the rates depend heavily on these 3 factors:

a) The bank you are applying for
b) The loan amount you are applying for
c) Your credit rating (good paymaster vs bad paymaster vs having no loans at all)

2. As for the legal fees, only HSBC that I know of can absorb the legal fees in its entirety, but the rates CAN (not necessarily) be worse than the other banks by about 0.2 to 0.3%. On the other hand, other banks do offer to include the legal fees into the loan amount, so your refinancing would be at a margin of 90% + 2~%.

- Faiz Azmi (+6 013 369 3993)





edit: You can also post your questions in this thread sanctioned by our STAFF Lucifah linked below ya. No questions are too stupid, you can ask about ANYTHING related to mortgage there, dont be afraid: Mortgage Loan Package Inquiries

This post has been edited by wild_card_my: Dec 12 2014, 01:25 PM

Thanks CFA28 for facilitate the summoning

a) The bank you are applying for
I guessing MBB, HLB and AMBANK for comparison
b) The loan amount you are applying for
Loan amount is equivalent to the valuation amount right?
c) Your credit rating (good paymaster vs bad paymaster vs having no loans at all)
Should be ok I guess...

2. As for the legal fees, only HSBC that I know of can absorb the legal fees in its entirety, but the rates CAN (not necessarily) be worse than the other banks by about 0.2 to 0.3%. On the other hand, other banks do offer to include the legal fees into the loan amount, so your refinancing would be at a margin of 90% + 2~%.
Is 0.2-0.3% consider a lot? I really got no clue. I don't even know how their interest is calculated...All I know is darn high.

1. HLB would probably give the better rates, but all offers are only final when the LO is issued by the respective banks, and I really cannot speak for them although my firm empannel all 3 (we have 5 banks under us); I cannot guarantee that HLB would give the best offers. I usually apply up to 3 banks for each customer, any more than this is a waste and it may affect the customers future applications since these applications (whether they are approved or rejected by the bank, accepted or rejected by the customer) will be recorded in the CCRIS

2. The loan is equivalent to 90% (plus 2~3% for legal fees that can be financed into the bank) of the MV. Provided that these are your 1st and 2nd house. But if it is your 3rd house, your refinancing would be capped at just 70%

3. Typically, to calculate the difference without a calculator.... 0.1% in interest charge for RM100k loan amount is RM100 a year. So if the difference is 0.3%, for a loan amount of say, RM500k, the nominal difference is 3 x 100 x 5 = RM1,500 a year that you overpay (or save, depending on which bank you take la)

Typically the Legal fees is about 2% of the loan amount only. So at 0.3% difference in interest rate, in 6.66 years you would already have covered the legal fees, and if you go beyond the 6 years, you would be over paying the bank that initially covered your legal fees. The legal fee absorption is good if you are planning to sell or refinance the house within 6 years of purchasing/refinancing.

Sorry late reply, went for Friday Prayers

So it is better to get 3 banks proposal/quotation then.

One more question, how is the interest being calculated monthly?
Example, Loan Amt 200k, required minimum payment monthly RM1k, when receive the statement, RM7xx paying interest, RM2xx credit to principal and sometimes the figure doesn't add up to RM1k also.

Refer to the table below

RHB has a good HL Calculator which is very transparent

The monthly installment is used to repay Interest first and the balance to principal

Just to add, in actual situation, the monthly interest will be based on the actual number of days but the RHB calculator is just based on annual interest / 12-mths for simplicity cos its difficult to calculate if follow actual number of days.



This post has been edited by cfa28: Dec 12 2014, 02:49 PM


Attached File(s)
 HL_Repayment_Schedule.pdf ( 72.21k ) Number of downloads: 29

Under what reason you want to refinance?
If you take the current loan from past 5 years, it is not worth at all to refinance as you are delaying the time(if you are still young) and losing out on the interest.
Just do your self a calculation and see what is your principle is.

Thank you, that explain a lot.

I thought people do refinancing, get the money and buy prop or pay other debt.
It is a bad time to do refinance as the cuckoo of the economy situation?
Next year the service will kena GST if wanna do refinance...


Or is it possible to negotiate with current bank to reduce the interest or etc...?

I only consider refinance if the interest rate between 2 loans are > 5%, 10-15 years back, housing loan are freaking high at 9-11%.
Else just continue to pay the current loan. Unless you have too much money to waste, then just take it.
If you feel under pressure with current situation, consider use credit card to make money.

I need to get quote then only can compare between 2 contract then. Existing one is signed at 2005.
I don't have money to waste, as just recently only starts to concern about money. Yah, I'm seeellloooowwww learner...
So anything now concerning dollar and cent need to consider, cost cutting, SCM myself.
Btw, how to make money using CC?

Just say you are taking your loan in 2005 for 25 years, which you will settle it by 2030. BLR at that time should be about 6% - 0.5-1%, so 5% I guess? Hope you can state clearly on all this.
You already paying the loan for 9 years, which should be paying quite a sum of interest.
Use cash back credit cards to make money, buy groceries and sell it back, each month you can make about rm30-100.
And you no need to get any quotation, since refinance is still a "new loan".
At the end of refinance period, you will know that you paid extra interest and only can settle it after 2030.

This post has been edited by supersound: Dec 12 2014, 03:21 PM

I think is BLR -1%, need to double check it though.
What is the current interest rate?

Current is between BLR less 2.2% to 2.4%, depending on loan amount and credit profile

You can request for your Bank to revise the rate bit they will probably go as low as between 1.8% to 2.0%

Ok. Thanks for the tips. Shall contact my banker now.

Good luck and do bear in mind if the Banks revise their rate, it comes with a new Lock-in-Period

If the Banks refuse to give you a better rate, then u can give wild_card a call.

Don't mind the lock in as not planning to sell.
Thanks a lot.

Do provide me your loan repayment period, interest rate and each month's cost.
But without looking at it also I can tell you the answer : you are wasting your money.
Just follow what I'm doing, quite effective to gain money without taking too much risk :
I have MBB's dual card with 5% cash back + 5 X TPs(which I convert it back to cash vouchers), that used for paying my TM, TNB bills that only cost me rm250 and some once a blue moon online shopping(now with USD so strong, I can forget about it). I need to spend at least rm1000 to get rm50 of cash back, so balance of the rm750 I use it to pay my wife's kindi TM and TNB bills, rm400, so I give less money to my wife. The balance rm350 is used to pay my uncle's TNB bill, so rm50 every month sure on hand.
Then for my groceries, petrol and Maxis are settled by HLB's STUPID card. My own spending on groceries are about rm200 a month, petrol about rm400(2 cars), so again I got extra rm400 that I can use it to make money.
With rm400, I can buy 13 bags of Milo 2KG soft packs for rm30(during promotion I sure take few)and then sell it for rm30.5-31. As I'm getting 8.25% of cash back, the actual price of the Milo is rm27.52, so I gain rm3 per pack or rm39.
But found a better deal, Libresse pads for rm2(original price rm8), already bought 20 packs and wait till the offer finishes then sell it back at rm8, so rm120 once sold out.
With both the cash back cards, I only pay rm1867.5 for rm2000 spending, which partly are my spending and others are used to make money. With rm132.50, you can use this money to offset your interest.
So this is how I free up my money.

That is a very smart way of you managing your money. I have the MBB 2 card also
Who you sell your goods to? Mini mart?

Nope, to neighbors and traditional coffee shops.
Just go to Tesco, Giant, AeonBig and see whatever are cheap, just sapu them, then no more offer sell it back.
Let bank work for you, don't work for bank.
That's why I never encourage people do refinance unless really in deep trouble.
As your loan's interest rate and current loan offer's difference are about 1%, so just forget about it.