RM390k DSL.

I just checked with my Relationship Managers from HLBB MBB and OCBC.

There shouldn't be any 1% commitment fees on the OD facility in your case since the OD amount is lower than 250k. Let me know if you need help with this.

Do you reckon these banks offer part OD, part term loan for housing loan facility ?
I prefer OD facility albeit slightly higher interest rate because I can make my lazy money in FD account to work harder in OD account and at the same time remain comfortably liquid in the event of contingency.

Reckon? No. Confirmed? Yes. Sorry I forgot to mention that. Yeah, these banks do offer part OD and part Term loan like you wanted. I asked them at the same time when I was talking to the RMs.

And yeah, you have a good grasp of use of OD. It's a good facility for those who can get it.

Thank your Sir.

My current house is under OD/TL facility.

A question about full flexi TL.
Consider I plan to fully pay up full flexi TL upon full loan disbursement to save the interest cost, can a full flexi TL offers the same convenient and liquidity as in OD ??

Is it applicable on car loan?

Term loans with Flexi can be cheaper, but it has a term. You may also accidentally finish paying off the loans and the account would be closed. And it comes with a monthly charge of RM5 to RM20 depending on the banks.

Best to have a combination of facilities, or full OD. Although even without the commitment charges, the OD facility may have higher rates than term loans.

Not at all. Car loans have their interest calculated in advance. You will not save any interest by paying more.

Thanks...

My banker from Maybank have offer me semi flex housing loan.

Explanation

For example, housing loan is RM250,000
So, if you dump RM100,000 into the loan. (need written letter)
Therefore the loan interest is calculated base on RM150,000 (Principal) + Interest

She said I can withdrawn the money with T & C

1. Minimum withdrawal will be RM 1,000
2. Each withdrawal service charges - RM20

It should be better rather you put in the FD because
my loan interest 4.45% vs FD 3.15%

I'm just sharing this info, correct me if I am wrong.

How effective bi-weekly payment on maybank will reduce the Interest rate? Compare to I pay monthly basis as well as capital dump to offset principal? Any master can advise?

What is the type of loan that you are having with Maybank for this?

If you are using M2U, putting Advance Payment into the Loan Account does not necessarily need to notify the bank, it will automatically reduce your Remaining Principal amount.

2 year old thread, is the payment 2-weekly stoll relevant with current loan structure, in order to reduce principle? Heard that some types will treat advance as next installment.

The so-called trick that can pay off faster with bi-weekly payment because you are effectively paying extra one month of installment in advance each year.

One year has 52 weeks. Paying installment bi-weekly will be equivalent to paying 13 months worth of installment each year instead of conventional 12 months. That's why some companies are paying employees additional 13th bonus in order to compensate the extra working weeks.

You can knock off your loan repayment earlier by paying extra installment manually when you receive your bonus once a year too. Same principle only.

yeah, most banks now allow you to pay in advance and whatever is over what you ar esupposed to pay will reduce the capital outstanding, thus lowering your payable interest (interest is calculated on a daily rest, on the capital outstanding)

check with your banks though, not all banks do this.

still the same if u pay by bi-weekly.
worst case u still in loss.

loan 400k
tenure 35 yr
monthly installment 1843.79
interest 4.3%
due date every 1st day of the month
full flexi loan

daily interest 400k x 4.3% / 365 = 47.1232

at 15th of the month
Payoff amount 400k + 15 x 4.3% / 365 = 400k + 706.8493 = 400706.8493
Outstanding amount 400k

Option 1(pay bi-weekly)
Assuming u pay bi-weekly which is at 15th of the month
Payoff amount 400706.8493 - (1843.79/2) = 399784.9543
Outstanding amount 400k

take note that the interest rate is calculate based on the outstanding amount which is 400k and the interest rate will be 47.1232/day


Option 2(offset principle, withdrawal option)
Assuming at 15th of the month, u use (1843.79/2) and bank in to offset the principle, withdrawalable
Payoff amount 400706.8493
Outstanding amount 400k - (1843.79/2) = 399078.105

interest rate after 15th will be based on 399078.105 which is 47.01468/day

Summary, its not worth to pay bi-weekly and a lot of agent is giving false info on this.

still works the same.

Using the bi-weekly (2 week) payment on your installment will effectively pay your housing loan by an additional 1 month by end of the year.

Hello all Sifus,

So lets say if i took a loan of RM500k, with a bank interest rate of 4.45%

And i put RM400K of my own monnies into the flexi accont, does that mean that the 4.45% interest will only be based on RM100k?

yes u r right

Yes you are correct. But you would have to be careful with the flexi account. It is possible that the banks have limits on your flexi capital repayment. Please check in your LO and call your bank directly, because CIMB has made some changes which would not be reflected in your signed LO