Hi all,

I have a full flexi account with some money deposit inside. My house is under construction and i have been servicing my house interest and find it every month burning money by servicing interest just like that. So i talk to my bank to do early installment, so that i can start paying installment instead of burning interest.

But the way the bank explain to me is it wont make a lot of difference since my account is full flexi, and my current deposit already deducted some of the interest. Even though i start early for installment repayment, its just like deducting more from my account, but the interest saving is the same.

Can anyone enlighten my is it true? i thought start paying installment early better than start late, or it make no difference?

Thanks.

Hi all,

I have a full flexi account with some money deposit inside. My house is under construction and i have been servicing my house interest and find it every month burning money by servicing interest just like that. So i talk to my bank to do early installment, so that i can start paying installment instead of burning interest.

But the way the bank explain to me is it wont make a lot of difference since my account is full flexi, and my current deposit already deducted some of the interest. Even though i start early for installment repayment, its just like deducting more from my account, but the interest saving is the same.

Can anyone enlighten my is it true? i thought start paying installment early better than start late, or it make no difference?

Thanks.

RM 10-20 every month. if i remember correctly.

Never owe them money but still pay RM10 maintenance plus the minimum charge for a period.

small amount but felt cheated. lol

just ask your opinion....if u have 50k, would it be better to dump it to your housing loan account or put it in fd?

Hi all,

I have a full flexi account with some money deposit inside. My house is under construction and i have been servicing my house interest and find it every month burning money by servicing interest just like that. So i talk to my bank to do early installment, so that i can start paying installment instead of burning interest.

But the way the bank explain to me is it wont make a lot of difference since my account is full flexi, and my current deposit already deducted some of the interest. Even though i start early for installment repayment, its just like deducting more from my account, but the interest saving is the same.

Can anyone enlighten my is it true? i thought start paying installment early better than start late, or it make no difference?

Thanks.

your early installment means every month you put your scheduled monthly installment into your full flexi current account right?

it would help a bit but it won't help much unless you put a lump sum of money into your full flexi current account.
let's say your loan size is 500k, you put 200k inside and the interest charge base on 300k only
but if you only put monthly installment into it , like 2500 then the interest charge base on 497500 which is hardly to save up any

but now you are servicing your interest while waiting your house to complete so it depends on the progress of your house currently. If your house situated at lower floor then the interest you need to service is getting more. If at higher floor then the interest still lesser.

If you are having the true full flexi account, it works very simple.

You just need to dump in the amount of money into your account that is same to the amount bank pay to developer, then no interest charge shall incur. Depending on the bank, there may have some additional maintenance charges (RM 10 per month for example).

Let say bank pay RM 50k to the developer, and you put RM 50k into the account, then you do not need to serve any interest.

If let say bank pay RM 50k to the developer while you only put RM 20k into the account, RM 30k will be subject to interest and will be automatically deducted from the RM 20k you put in.

There is no need to start the installment officially with the bank early, you can just every month put in the installment amount by yourself into your flexi account and definately it will reduce the interest.   

The principle for full flexi account is simple and straightforward, they only charge interest on the outstanding amount. The higher outstanding you have, the higher interest you need to pay.

Gd morning sir, this's a very good and straightforward explanation. Thank you.

I've some doubt abt flexi loan ac, hopefully you do not mind to explain.

About the flexi loan account number, is it the same ac numbers to pay "normal monthly installments" and "extra lumsum money to offset principal"?

full flexi loan, you got a saving account right? money in that saving account is used to offset the loan amount interest. am i right?

my past experience with cimb is quite simple. cimb full flexi will provide me a current acc and its linked to my home loan so i just dump in to my current acc from the beginning to offset the progressive billing interest as well as loan interest to reduce the principal amount. There is a monthly service fee RM10. This was 7 yrs ago but today most of the banks had revised the t&c for full flexi loan as they will not allow you to offset any progressive billing interest at all during construction period

my past experience with cimb is quite simple. cimb full flexi will provide me a current acc and its linked to my home loan so i just dump in to my current acc from the beginning to offset the progressive billing interest as well as loan interest to reduce the principal amount. There is a monthly service fee RM10. This was 7 yrs ago but today most of the banks had revised the t&c for full flexi loan as they will not allow you to offset any progressive billing interest at all during construction period

My HSBC Flexi loan allow to offset progressive billing interest during construction period.
Mine is started last year.
As long I dump in certain amount of money into my current account, it will automatic deduct the principal and charge interest based on remaining amount.
For example I borrow 500,000
They will show my current account amount like -500,000.
When I dump in 50,000, it will show -450,000 on my account, and usable amount 50,000.
The interest charge on daily basis.

The con of flexi loan is when you unable to fulfill your repayment, then it will be disaster.
Not advise for those without discipline to pay your loan on time one.
For those always pay loan in advance one, it is advisable that you should go for flexi loan

You are right. Full flexi is good for those with excess fund as you can dump in to offset the interest at any day and time and also with the flexibility to withdraw it out at any time as well

of course it's not advisable to perform any withdrawal since the ultimate goal for full flexi is to save big chunk of interest to reduce overall loan amount but at least it gives you the flexibility

It's good to know HSBC still allow to offset progressive billing interest

semi also good, no maintenance fees. Mbb also allow to offset progressive int.

Have to wait 2~3 days to get the money back thou.

Full flexi is pretty okay if you have discipline.

It's just RM 10,60 with no withdrawal charges per month. By 35 years only, RM 4,452.00

Dump in extra cash / salary / etc at start of month, withdraw if you need to use.

Rinse and repeat.

Ya you're right too, but I use semi because of cheapskate with rm10.6 / month. But the withdrawal charges for semi flexi is rm25 per withdrawal.

Rm10.6x12 = semi flexi can withdraw 4.8 times per year lo. I don't think I'll withdraw the money frequently.

Guys...wanna seek some advice from Guru here...

i plan to get a property with 700K loan (full flexi) @ 35 yrs and i have FD of 900K....

Question 1 - if i park in 700K into the flexi acct, does that mean my loan will still still be valid for 35 yrs ( assuming i dont take out the 700k) ? since i dont owe to bank, there is no monthly installment need to pay right?

Question 2 - can i park my 700k as FD in the flexi acct? or there is no such thing?

appreciate all Guru advices..here..

Guys...wanna seek some advice from Guru here...

i plan to get a property with 700K loan (full flexi) @ 35 yrs and i have FD of 900K....

Question 1 - if i park in 700K into the flexi acct, does that mean my loan will still still be valid for 35 yrs ( assuming i dont take out the 700k) ? since i dont owe to bank, there is no monthly installment need to pay right?

Question 2 - can i park my 700k as FD in the flexi acct? or there is no such thing?

appreciate all Guru advices..here..