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.

In principle, semi-flexi suppose to be the same, the difference only on the mechanism of withdrawal of excess cash in the account is different.

Nonetheless, I found that semi-flexi account nowadays vary from one bank to another and may have their own rules and regulations, so I am not sure if full flexi loan pricinple still apply to semi-flexi loan.

Can you clarify more on this?

Putting excess money to reduce the outstanding for sure will reduce the interest as well. But the amount you save would depend how much you able to reduce.

Let say bank already paid RM 250k to the developer and charge RM 1k interest per month, so if you pay RM 1k, next month bank will charge you RM 1k again as interest for that RM 250k outstanding.

If let say instead you pay RM 1k for interest, you pay RM 2k instead. So your new outstanding would be RM 249k, and may charge RM 999.50 (just example, for actual amount, need to count by yourself) interest in the following month, so you save RM 0.50 cents of interest.

You can put whatever amount into the account by yourseld, no need to start installment officially with the bank early.

What's the rate of the minimum interest? 50k, 100k, 150k also similiar?


The case of penalty for those underutilize the loan amount is already called off.

https://forum.lowyat.net/topic/3762030/all

I have a cimb full flexi loan in 2013, but due to property is still having the DIBS scheme, I have not encounter such incident. My other full flexi loan in UOB not such problem, no minimum interest charge, even the deposit amount is same as loan amount..

If only 50k, better to put it inside the loan account, still not come across any FD rate is higher than Loan rate for RM 50k.