My opinion on this would be that it is a valid strategy as long as:

1. Your salary is credited into that particular account to maximize the savings that take place each day that you do not withdraw your money for payments.

2. If you were a Bumiputra, that you don't put too much of your emergency funds in there anyway, since you are offsetting only 4.5% or whatever your mortgage rates are, compared to ASB's 8.5++%. So for medium to long term emergency-cum-investment, things like ASB or bond funds may still be better .

Sure, I'll explain! But I am on mobile now so a little difficult to explain without drawing any illustrations. If you are not clear feel free ask.

1. Like I said, nowadays most mortgage (please verify with your banks just in case) interest is calculated based on daily rest and not monthly rest. That means each day, interest is calculated based on the OUTSTANDING BALANCE of the day, add added into the interest to be repaid by the end of the month as part of the installment.

2. Keep note that when you pay off the installment, you are paying both the INTEREST and OUTSTANDING BALANCE

3. You want to quickly pay off the OUTSTANDING BALANCE to finish paying your loans.

4. We will follow your example of RM1500 monthly installment: As such, when you pay RM750 on the 15th of the month, and another RM750 on the 30th of the month:

a) From the 16th onwards, you have RM750 less of the OUTSTANDING BALANCE.

b)  The reduced OUTSTANDING BALANCE means that the interest incurred from the 16th to the 30th is now reduced by a small amount.

5. On the 30th, when you pay another RM750, the interest savings you had earlier would translate to a higher portion of the RM750 installment used to pay off the OUTSTANDING BALANCE.

6. The cycle continues and eventually you would end up paying more of your OUTSTANDING BALANCE and reducing the tenure.

Yes, definitely. But you can only do this if you get your salary 4 times a month right? Since if you already have the money upfront, why not just do advance payment that reduces the capital? and if you are already going to do this so oftern, it would be the utmost best if you just get a full-flexi account!

Exactly, you got it all right. If you get your money or salary earlier in the month, then just pump it into the loan account now, if you want to save the 4.4%++on mortgage interest.

Btw, plese ask the bank first ya about your loan's advance payment p0olicies..