Sep 15 2009, 02:14 AM
QUOTE(gavin_lim @ Sep 14 2009, 06:13 PM)
To : b00n
Sorry that I didn't read the previous posts. In fact I didn't mean to post so much things at here also. Now I just realise I shouldn't say not to recommend MLTA, but I should have say not to take any MLTA that has a saving component. Does it correct my sentence? Or how should I say to make it clear?
To : Onnying88
From the example you given, I feel something not quite right. From your previous post you said your MLTA has a return of RM63579 after 30 years (4.5%p.a compound interest rate from calculation). Then your last post says RM49776 after 25 years (5%p.a compound interest from calculation). Why compound interest rate for 30years is less than 25years? Do you mind refer back your quotation? RM49776 has a compound interest of 5%p.a (which is higher than 4.85%p.a for the loan), of course you can see some profit here.
Second, is this a participating policy or non-participating policy? If this is a participating policy, remember that the return is non-guaranteed. It could be more or be less as well. Hope that the value you provided above is not from the scenario with the higher return (which is not likely to be happened in most of the time).
Third, You may be right. Current loan with BLR-X% is much cheaper than fixed rate home loan. The reason is simple, you take the risk of BLR, therefore bank offer you a cheaper rate at the moment. However, don't forget BLR will fluctuate. If BLR going up you're going to pay more money for the interest and your loan tenure will be extended. If you prefer to take the loan with BLR-X% and you believe BLR will stay below 7% for the rest of your loan tenure, you can just go ahead.
The MLTA surrender value at 25years and 30years is correct and it's Black & White Guaranteed. Different years have different value. It's not base on any % of interest for the surrender value. Sorry that I didn't read the previous posts. In fact I didn't mean to post so much things at here also. Now I just realise I shouldn't say not to recommend MLTA, but I should have say not to take any MLTA that has a saving component. Does it correct my sentence? Or how should I say to make it clear?
To : Onnying88
From the example you given, I feel something not quite right. From your previous post you said your MLTA has a return of RM63579 after 30 years (4.5%p.a compound interest rate from calculation). Then your last post says RM49776 after 25 years (5%p.a compound interest from calculation). Why compound interest rate for 30years is less than 25years? Do you mind refer back your quotation? RM49776 has a compound interest of 5%p.a (which is higher than 4.85%p.a for the loan), of course you can see some profit here.
Second, is this a participating policy or non-participating policy? If this is a participating policy, remember that the return is non-guaranteed. It could be more or be less as well. Hope that the value you provided above is not from the scenario with the higher return (which is not likely to be happened in most of the time).
Third, You may be right. Current loan with BLR-X% is much cheaper than fixed rate home loan. The reason is simple, you take the risk of BLR, therefore bank offer you a cheaper rate at the moment. However, don't forget BLR will fluctuate. If BLR going up you're going to pay more money for the interest and your loan tenure will be extended. If you prefer to take the loan with BLR-X% and you believe BLR will stay below 7% for the rest of your loan tenure, you can just go ahead.
I do agree that BLR will fluctuate and 100% not going to stay as low as current rates. But since it's historical low interest for now, why not we enjoy the benefit of the cheap interest now? We can always refinance in the future.
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