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> Reduce House Loan: Knock Off 8.5 years from loan!, Anyone is doing this?

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ColdDasher
post Aug 1 2017, 12:38 PM

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QUOTE(wild_card_my @ Aug 1 2017, 11:06 AM)
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
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Thank you, sir. thumbsup.gif I will be sure to do that.
lifebalance
post Aug 7 2017, 10:37 PM

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QUOTE(ColdDasher @ Jul 27 2017, 02:42 PM)
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?
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Yes correct, you will only incur interest based on the remaining 100k @ 4.45 as you still owe this amount to the bank.

angelflames
post Aug 10 2017, 02:32 PM

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QUOTE(MNet @ Jul 16 2017, 10:08 AM)
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.
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So if my monthly installment is 2k, there is no point paying 1k on the 15th and 1k on the 30th, the amount I paid will still be the same?
wild_card_my
post Aug 10 2017, 02:46 PM

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QUOTE(angelflames @ Aug 10 2017, 02:32 PM)
So if my monthly installment is 2k, there is no point paying 1k on the 15th and 1k on the 30th, the amount I paid will still be the same?
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no, if you pay 1k on the 15th, you would be saving interest on the 1k for the next 15 days, calculated on a daily rest, provided that your next installment due is on the 30th
SUSMNet
post Aug 10 2017, 07:46 PM

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QUOTE(angelflames @ Aug 10 2017, 02:32 PM)
So if my monthly installment is 2k, there is no point paying 1k on the 15th and 1k on the 30th, the amount I paid will still be the same?
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u better put the 1k as principal payment and its withdraw able, then at the due date, withdraw the 1k and top up with another 1k to pay as monthly payment.
sonypshomer
post Sep 1 2017, 02:26 PM

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Semi Flexible loan can do this
psyduck89
post Sep 13 2017, 07:01 PM

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QUOTE(wild_card_my @ Aug 10 2017, 02:46 PM)
no, if you pay 1k on the 15th, you would be saving interest on the 1k for the next 15 days, calculated on a daily rest, provided that your next installment due is on the 30th
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do i need to inform the bank?

or i just bank in my money into that account?
lifebalance
post Sep 15 2017, 05:32 AM

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QUOTE(psyduck89 @ Sep 13 2017, 07:01 PM)
do i need to inform the bank?

or i just bank in my money into that account?
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You need to inform the bank if you're using a semi flexi loan because the system sometimes can't differentiate if you're putting the extra for next month installment or for advance payment towards principle
kimirockz
post Sep 20 2017, 11:19 PM

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very informative
janice17
post Oct 5 2017, 10:43 PM

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hi guys, so now my MBB flexi mortgage account is up, bank has disbursed money to the vendor and i will need to pay instalment very soon.

Let's say now i have extra money and thinking to park the money in the bank to lower down the interest, what should i need to do? ie where to park the money, do i need to notify the bank etc.

Let's say my loan amount is 300k, i parked 50k,

1. interest calculation is based on 250k right?
2. the 50k is treated as principal reduction or interest advance payment?





edkong
post Oct 17 2017, 02:49 PM

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i was so confuse on recently public bank mortgage loan full flexi, why need 30k inside the current account?? I doubt that sifu please guide
SUSMNet
post Oct 18 2017, 04:15 PM

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no need any $ inside the account. dont be con
cheejiun
post Oct 31 2017, 09:51 PM

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Hi All Sifu,

Recently I got inquiry on full flexi and semi flexi ,

I just don't get it on semi flexi reduce tenure and full flexi is not ,

I wondering how it can happen


SUSMNet
post Nov 2 2017, 10:16 PM

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just choose the lowest rate then u will not goes wrong
Jie
post Jan 14 2019, 03:51 PM

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QUOTE(wild_card_my @ Jul 3 2015, 10:37 PM)
Yes, it is a very sound financial planning to do this. This is why some flexi accounts are charged RM5 to 20 a month, because this facility actually has some value to those who use it.

Say, you keep RM20k as your emergency funding all the time for a year in your flexi-savings account, based on 4.5% annual interest rate, you are saving RM900 from paying interests to the bank this way! Of course, your installment stays the same, but this means your tenure is shortened!

Even if you are not keeping a large sum of money in the flexi account all year, but only in the account for a few days between getting your salary and paying off your commitments, due to the daily rest of most, if not all flexi loan accounts, you are saying quite a bit of interests!
Yes, please clarify with the bank just to be sure. It would be best if you could clarify before signing the loan, but different people have different circumstances!  Good to know you are being proactive against paying unnecessary interests to the banks
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Just a question, would this work with RHB My Full Flexi Loan? from what I understand you need to park the extra cash inside the loan account in multiples of rm1k in order to reduce the principle.

Leaving it in the savings account will not do any good?

Separately, want to ask,

I got offer from Public bank and RHB so far trying to decide between this two.

1.) PBB Semi flexi 1st yr 4.35% subsequently 4.45% (semi flexi can reduce principle by any amount and min mrta only 6k)

2.) RHB full flexi 4.45% (* downside is need to reduce principle need to pay into loan account multiples of rm1000 and min mrta is higher at 9.7k)

what is your advice and which would you choose?

thanks in advance !
Evertraveler
post Jan 30 2019, 12:16 AM

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QUOTE(Jie @ Jan 14 2019, 03:51 PM)
Just a question, would this work with RHB My Full Flexi Loan? from what I understand you need to park the extra cash inside the loan account in multiples of rm1k in order to reduce the principle.

Leaving it in the savings account will not do any good?

Separately, want to ask,

I got offer from Public bank and RHB so far trying to decide between this two.

1.) PBB Semi flexi 1st yr 4.35% subsequently 4.45% (semi flexi can reduce principle by any amount and min mrta only 6k)

2.) RHB full flexi 4.45% (* downside is need to reduce principle need to pay into loan account multiples of rm1000 and min mrta is higher at 9.7k)

what is your advice and which would you choose?

thanks in advance !
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I would suggest you to try getting offer from CIMB. Their offer is the best at current. I just got one from them.
(1) PBB has a processing fee of RM212. (CIMB has no processing fee)
(2) MRTA is not required for CIMB
(3) PBB only allow max 1 withdrawal per month with RM50 charge per transaction. (CIMB has no limit on withdrawal. Charge is only RM10 through online)
(4) PBB only allow withdrawal at parking branch. (CIMB allows withdrawal at branch/call center/online)
(5) PBB only allow max 70% on interest savings throughout tenure. (CIMB allows 100% savings)

This post has been edited by Evertraveler: Jan 30 2019, 12:19 AM
Jie
post Jan 30 2019, 09:57 AM

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QUOTE(Evertraveler @ Jan 30 2019, 12:16 AM)
I would suggest you to try getting offer from CIMB. Their offer is the best at current. I just got one from them.
(1) PBB has a processing fee of RM212. (CIMB has no processing fee)
(2) MRTA is not required for CIMB
(3) PBB only allow max 1 withdrawal per month with RM50 charge per transaction. (CIMB has no limit on withdrawal. Charge is only RM10 through online)
(4) PBB only allow withdrawal at parking branch. (CIMB allows withdrawal at branch/call center/online)
(5) PBB only allow max 70% on interest savings throughout tenure. (CIMB allows 100% savings)
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Okay, thanks for your advice but I went with RHB in the end.

CIMB offered a much higher rate than the rest and I wanted full flexi so RHB was the best option.

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