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 What is actually a flexi loan?, Is HomeFlexi Smart Loan a flexi loan?

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TSlcl832002
post Jan 17 2017, 09:34 PM

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QUOTE(ketnave @ Jan 17 2017, 12:33 AM)
Refer to the following FAQ for some explanation:
https://www.hlb.com.my/main/info-centre/per...asked-questions

Note: I am not endorsing or recommending HLB, I just find their FAQ provide clear example and it's relatively easy to understand.

IINM, full flexi, you will pay a monthly service fees, usually RM 10 per month.
As for Semi-flexi, you will pay a half yearly services fees, which I think is RM 10 every 6 months.

With full flexi, you can withdraw money that you have put into the current account anytime, without any charges.

In sem-flexi, you will have to make a request with the bank when you want to withdraw money from the current account, and it will take a few days to get the money (2 to 3 business days). There might also be a small charge for the withdrawal request, probably RM 25+

Ask the bank for product disclosure sheet and also all the related fees structure.

All the best.
*
Thank you. I think your explanation is very clear.
TSlcl832002
post Jan 17 2017, 09:36 PM

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QUOTE(ricstc @ Jan 17 2017, 12:38 AM)
its a loan that you can never ever really pay up

imagine, your savings is your loan account - you take from it you still hutang

you deposit money, it's STILL a loan

forever cannot separate which is your asset savings which is your liability (loan)

very frustrating

this is my personal experience so id rather do the conventional way

loan account loan account

savings account savings

makes me feel there is meaning to life than hutang to bank forever - a trap to keep
you in usury and enslaved in debt
*
I make a mistake. Actually I did not want to take the offer but I had no many choices at that time.
TSlcl832002
post Jan 17 2017, 09:38 PM

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QUOTE(Benster124 @ Jan 17 2017, 08:01 PM)
Full flexi - loan account is same as savings account
1) you can deposit extra anytime, withdraw anytime, no need to inform nobody
2) interest is calculated daily based on your balance in account e.g.. loan 200k - bank balance 50k = 150k, interest charge will be based on 150k instead of loan amount of 200k.
3) the deduction from your account for loan repayment is fixed, say rm2000/mth, but because your interest is fluctuating, your actual capital reduction amount is also fluctuating, say you pay rm2000/mth, but interest for the month is only 1600 because you have additional 50k in account, so your capital reduction portion is 2000-1600=400. you will see your loan facility of 200k reduced by 400 next month. i.e. -196,600.
4) It is a current account, means you get a cheque book, plus you pay rm10.60/mth service charge

Pros:
1) If you have irregular cash flow(businessman), you sometimes need to take out full 200k for some investment, sometimes have additional 100k cash to dump back into account waiting for next investment, then this is good, because your interest will be lower overall and your reduction of capital will be faster.
2) Your money is in your own control.

Cons:
1) It will be difficult to access how much loan repayment is capital, because the calculation is done backend by system.
2) Because your additional money that you decide to pay into the account is still available to withdraw, without self discipline, you may actually withdraw it for use later and hence your repayment will not shorten at all.

Semi-flexi - loan account is separate from savings account
1) you may or may not need to inform bank for deposit extra, definitely need to do over the counter withdrawal of the extra and pay RM25 each transaction
2) deduction from your account for loan repayment fluctuates based on loan balance and BLR.
3) you need to have a separate savings account

pros:
1) if you are not a self disciplined person, then it is ease of mind, you dump in additional money, and thats it the interest payment will lessen, loan period will shorten.  nothing to know more.
2) you pay less service charge

cons:
1) your money once inside, still can withdraw but have a fee and troublesome(over counter only), so if you have additional 100k you will most likely not dump in, and retrieve out one month later for investment opportunity, means your interest charge will continue based on the loan amount even though another savings account of yours have 100k inside.
2) don't have cheque book if thats a concern to you

Conventional loan
Deposit extra need to inform, some have a fee also, and cannot withdraw out once inside.
*
Thank you, very clear explanations
kmarc
post Jan 17 2017, 11:22 PM

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Just be careful of the finer details. For full flexi with linked current account, it is mostly true that the amount you have in the current account will offset the loan balance. However, some banks like public bank don't offset 100%. They only offset 70%. I.e if your loan balance is 100k and you have 100k in your current account, only 70% or 70k is used to offset the 100k. So 100k - 70k = 30k which will still be charge interest. If you want to fully offset 100k, you have to put roughly 142k in the current account (70% of 142k is roughly 100k). From my experience and limited knowledge, Ambank and HSBC offsets 100%.
wengherng
post Jan 18 2017, 12:13 AM

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QUOTE(ricstc @ Jan 16 2017, 11:38 PM)
its a loan that you can never ever really pay up

imagine, your savings is your loan account - you take from it you still hutang

you deposit money, it's STILL a loan

forever cannot separate which is your asset savings which is your liability (loan)

very frustrating

this is my personal experience so id rather do the conventional way

loan account loan account

savings account savings

makes me feel there is meaning to life than hutang to bank forever - a trap to keep
you in usury and enslaved in debt
*
I don't quite follow.
In flexi loans, you still get two separate accounts......the current account and the loan account.
Everything is separate, except the balance in the current account is used to offset the loan interest calculation.


wengherng
post Jan 18 2017, 12:17 AM

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QUOTE(lcl832002 @ Jan 17 2017, 09:36 PM)
I make a mistake. Actually I did not want to take the offer but I had no many choices at that time.
*
I hear that these days it is very difficult to secure a bank loan.
Well, it's not the end of the world.
Just sit back and wait it out for a few years, then when the economy is better, you can go shopping for a better loan package from another bank, and just transfer your loan.
Or you can also opt to restructure your loan with the same bank, to get a better deal.
Don't worry about it too much.


spreeeee
post Jan 18 2017, 09:33 AM

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QUOTE(kmarc @ Jan 17 2017, 11:22 PM)
Just be careful of the finer details. For full flexi with linked current account, it is mostly true that the amount you have in the current account will offset the loan balance. However, some banks like public bank don't offset 100%. They only offset 70%. I.e if your loan balance is 100k and you have 100k in your current account, only 70% or 70k is used to offset the 100k. So 100k - 70k = 30k which will still be charge interest. If you want to fully offset 100k, you have to put roughly 142k in the current account (70% of 142k is roughly 100k). From my experience and limited knowledge, Ambank and HSBC offsets 100%.
*
thanks for the info.. believe many would missed this..

stated in contract or not?
kmarc
post Jan 18 2017, 10:07 AM

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QUOTE(spreeeee @ Jan 18 2017, 09:33 AM)
thanks for the info.. believe many would missed this..

stated in contract or not?
*
Yup, stated in contract. wink.gif
v1n0d
post Jan 18 2017, 10:20 AM

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Semi-flexi:
1. Any advance payment you make must be informed to the bank for it to be taken into account to offset interest.
2. A one-time fee is charged for a withdrawal of any advanced payment you previously made.

Full-flexi:
1. Linked to a current account (behaves like an overdraft).
2. Any advanced payment into the account automatically contributes towards offsetting loan interest.
3. Withdrawals can be made at any time without having to pay any fee.
4. You will be charged maintenance fees for the current account if your total balance falls below a certain threshold.

A full-flexi account allows you to maximize savings on interest if you have good financial discipline. I would highly recommend it if you also have plans to purchase more than one property. If you already have issues with managing your savings, then better opt for a semi-flexi loan.

For both full and semi-flexi loans, the banks usually impose a penalty should your dump more than a certain percentage of the full loan into the account to offset interest. For example, if the loan is 100k and the agreed margin is 70%, you cannot dump more than 70k into the account to offset the interest (think of it as a way for the bank to guarantee that they make profit off a minimum of 30% of your loan principal). If you're a first time home buyer, or if you're not particularly cash rich, you can ignore this as it most likely won't affect you.
TSlcl832002
post Jan 18 2017, 10:11 PM

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QUOTE(kmarc @ Jan 18 2017, 12:22 AM)
Just be careful of the finer details. For full flexi with linked current account, it is mostly true that the amount you have in the current account will offset the loan balance. However, some banks like public bank don't offset 100%. They only offset 70%. I.e if your loan balance is 100k and you have 100k in your current account, only 70% or 70k is used to offset the 100k. So 100k - 70k = 30k which will still be charge interest. If you want to fully offset 100k, you have to put roughly 142k in the current account (70% of 142k is roughly 100k). From my experience and limited knowledge, Ambank and HSBC offsets 100%.
*
Thanks for your info. Yes, I agree that HSBC offsets 100%.
TSlcl832002
post Jan 18 2017, 10:15 PM

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QUOTE(wengherng @ Jan 18 2017, 01:17 AM)
I hear that these days it is very difficult to secure a bank loan.
Well, it's not the end of the world.
Just sit back and wait it out for a few years, then when the economy is better, you can go shopping for a better loan package from another bank, and just transfer your loan.
Or you can also opt to restructure your loan with the same bank, to get a better deal.
Don't worry about it too much.
*
Thanks for your advice. Does it always save more money after doing refinance and after taking all costs incurred into account?
TSlcl832002
post Jan 18 2017, 10:15 PM

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QUOTE(kmarc @ Jan 18 2017, 11:07 AM)
Yup, stated in contract. wink.gif
*
Oh. I do not see it in my contract.
TSlcl832002
post Jan 18 2017, 10:18 PM

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QUOTE(v1n0d @ Jan 18 2017, 11:20 AM)
Semi-flexi:
1. Any advance payment you make must be informed to the bank for it to be taken into account to offset interest.
2. A one-time fee is charged for a withdrawal of any advanced payment you previously made.

Full-flexi:
1. Linked to a current account (behaves like an overdraft).
2. Any advanced payment into the account automatically contributes towards offsetting loan interest.
3. Withdrawals can be made at any time without having to pay any fee.
4. You will be charged maintenance fees for the current account if your total balance falls below a certain threshold.

A full-flexi account allows you to maximize savings on interest if you have good financial discipline. I would highly recommend it if you also have plans to purchase more than one property. If you already have issues with managing your savings, then better opt for a semi-flexi loan.

For both full and semi-flexi loans, the banks usually impose a penalty should your dump more than a certain percentage of the full loan into the account to offset interest. For example, if the loan is 100k and the agreed margin is 70%, you cannot dump more than 70k into the account to offset the interest (think of it as a way for the bank to guarantee that they make profit off a minimum of 30% of your loan principal). If you're a first time home buyer, or if you're not particularly cash rich, you can ignore this as it most likely won't affect you.
*
Oh I see. I did not know that there are many different features for both flexi loans offered by different banks.

Thanks.
cedyy
post Jan 18 2017, 10:25 PM

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most local banks offer semi flexi loan. my experience with fully flexi loan was with Citibank which i took back in 2005. i've fully redeemed the housing loan with them two years ago. basically, Citibank will provide an ATM card which allows you to deposit and withdraw any excess payment anytime. Any excess payment made will be used to reduce interest on a daily basis. i basically parked my saving into the amount owing into the loan account in order to reduce the interest incurred. There was no monthly fee charge

This post has been edited by cedyy: Jan 18 2017, 10:26 PM
wengherng
post Jan 18 2017, 11:29 PM

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QUOTE(cedyy @ Jan 18 2017, 10:25 PM)
most local banks offer semi flexi loan. my experience with fully flexi loan was with Citibank which i took back in 2005. i've fully redeemed the housing loan with them two years ago. basically, Citibank will provide an ATM card which allows you to deposit and withdraw any excess payment anytime. Any excess payment made will be used to reduce interest on a daily basis. i basically parked my saving into the amount owing into the loan account in order to reduce the interest incurred. There was no monthly fee charge
*
I don't know about "most" banks......I've had housing loans with Hong Leong, Maybank and Public Bank, and all were full-flexi loan packages.
But maybe that's changed in recent years......I don't know.

wengherng
post Jan 18 2017, 11:31 PM

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QUOTE(lcl832002 @ Jan 18 2017, 10:15 PM)
Thanks for your advice. Does it always save more money after doing refinance and after taking all costs incurred into account?
*
Well, if it didn't save you any money, you wouldn't be refinancing it in the first place, no? smile.gif
Personally for me, yes it was a positive move......but all things considered, sometimes it would be one or two years before you break even and start seeing savings.

ricstc
post Jan 19 2017, 07:05 AM

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QUOTE(Benster124 @ Jan 17 2017, 07:08 PM)
Other than the statement "cannot separate which is your asset savings which is your liability", which i marginally agree because it can actually be done, just need to track properly and need to do some calculation, the rest of your comment is not making sense.

Say, you have separate account loan 200k, and savings account balance 10k. you deposit 40k into your savings, you are still in debt of 150k! Your loan of 200k is still a loan, and interest is charged in full for the 200k.

you take out from your deposit account, you still hutang, you deposit also you hutang, this apply to every loan until you repay the full loan amount.
*
Good good good you change my mind very fast you convinced me that this is an excellent Loan account great I will pick it up as soon as possible

SUSMNet
post Jan 19 2017, 07:41 AM

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QUOTE(kmarc @ Jan 17 2017, 11:22 PM)
Just be careful of the finer details. For full flexi with linked current account, it is mostly true that the amount you have in the current account will offset the loan balance. However, some banks like public bank don't offset 100%. They only offset 70%. I.e if your loan balance is 100k and you have 100k in your current account, only 70% or 70k is used to offset the 100k. So 100k - 70k = 30k which will still be charge interest. If you want to fully offset 100k, you have to put roughly 142k in the current account (70% of 142k is roughly 100k). From my experience and limited knowledge, Ambank and HSBC offsets 100%.
*
Its different.
Loan account and current account is different.
the $ u park at current account won't offset ur loan interest.
ur loan interest will only be offset if u park the $ at ur loan account
SUSMNet
post Jan 19 2017, 07:43 AM

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QUOTE(wengherng @ Jan 18 2017, 11:29 PM)
I don't know about "most" banks......I've had housing loans with Hong Leong, Maybank and Public Bank, and all were full-flexi loan packages.
But maybe that's changed in recent years......I don't know.
*
I already consolidate all the loan with single bank and get better rate
prody
post Jan 19 2017, 08:11 AM

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QUOTE(MNet @ Jan 19 2017, 07:41 AM)
Its different.
Loan account and current account is different.
the $ u park at current account won't offset ur loan interest.
ur loan interest will only be offset if u park the $ at ur loan account
*
Actually for full flexi it does.
I tracked it during the entire duration of my loan and it was accurately done by the bank.

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