Not an issue. How much you owe will determine how detrimental the CC outstanding is to your loan application. Banks will usually based on 5% of the outstanding so for example, if you own in total RM10k in CC debt, 5% of that is RM500, soi banks that you apply for will consider that your commitments is up by RM500/m, which will affect your loan eligibility but if your income is bid enough to cover the commitments then there should not be any issues.

As for your second question, yes, you can ask the bank to disregard the current commitments because you want the cash-out to settle those loans, essentially consolidating your commitments under one account.

Nah man, AIA's offer as per your banner is 4.99% p.a, at best you can get a 4.25% financing from other banks, that is a 0.75% difference... if the loan is RM500k, you are looking at RM3.7 per year of losses for going with AIA's offer... fast forward 10 years you would be losing a lot more (provided that the 4.25% remains the same, and based on the past 10 year history, the variable rates, although changing has always been lower than AIA's offer at the inception of the loan uptake)

We dont know what the customers will do with the cash-out but to call the difference of 0.74% negligible is dishonest.

[/quote]


Then you must be pretty ignorant about savings on personal loan 12% and credit card interest 18% as compared to paying 4.99%.

It's okay, call it whatever you want, if you are always talking about 1/2 truth so that you can sway the audience in here. Then you are the dishonest one.

This post has been edited by lifebalance: Jul 10 2017, 11:07 AM

Like I said, we do not know what the clients are going to do with the money, is it to reinvest, to settle off other loans? We don't know, because there is NO CLIENT to speak of right now.

It really annoys me when insurance agents try to downplay the effect of 0.74% interest when their own product is on the other side of the spectrum (the expensive side) just because they want to sell their products... You should be clear that the difference is not just 0.x%, you need to be specific. You know the market rate for other banks' refinancing interest rate, but for the sake of increasing your sales, you go an declare that 0.74% in negligible. Is that honesty from your side? I don't know, maybe from the world where you come from that is acceptable.

You mentioned that you do insurance?

lifebelen, can you please cool down a little bit. we are having a discussion, there is no need to call someone a fool. If you need some psychological help I know a few specialists that I can refer you to

As you see, I do not present myself as an insurance agent, I identify myself as a mortgage broker , I am not doing mortgages for the sake of selling life insurance like most insurance agents do. I am focused on doing mortgages to address the customers mortgage needs (not to upsell insurance)

All I am saying is that, since AIA's offer is 0.74% higher than the ones offered by other banks, why should you take a scheme with AIA than with other banks like MBB, RHB, PBB? You are saying that 0.74% is negligible because there is a conflict of interest, you are selling AIA products and as an AIA agent you would get perhaps extra commissions/achieve-targets (you would need to sell MRTA/MLTA by AIA thus increasing your production).

Marketing and selling your product are fine, but what I do not accept, especially in my own thread of which I wrote an article of, is insurance agents like you downplaying the effect of 0.74% difference in interest rates between other bank products and AIA's offering

Also, this is where you are mistaken, there are 2 banks that I know of that would disregard current commitments if you tell them that you are going to use the cash-out portion to settle off those loans. You should know the limits of your knowledge, as I do. I learn a lot from other people, gurus, bankers themselves, and to some extent, insurance and unit-trust agents. You however don't seem to like it when other people know more than you, be it in insurance or mortgages. But you are inexperienced. I am willing to help you learn together, but if you keep calling me fool and other derogatory names.. I don't know if we can be friends

I implore that you stop acting up and help everyone here by giving sound financial advice instead of being biased for your own company just to make a quick buck. For starters, you can admit that you are wrong in the 0.74% p.a difference in mortgage interest rates is NOT NEGLIGIBLE

matrix88 lifebelence is primarily an insurance agent, so he may not be too experienced in mortgages and doesn't know that there are banks that would disregard the current commitment when you want to refinance if you tell them that you will use the cash-out to repay current debts, thus consolidating your loans

tagged so people know what I am replying to

Sure if you said so, remove the advertisement in your banner on Insurance, words are cheap without action.



As I said, this discussion is solely on refinancing, THERE IS NO WAY someone can achieve 4.25% refinancing as of 10/7/2017.

Proof if you can since you like to proof so much. Otherwise your statement contradicts what you just said.

And when you said downplaying, stop bullshitting la, Obviously you are not READING.

This is solely for debt consolidation and investment purpose, if the interest of refinancing can gain more benefit on paying the 4.99%, that's up to the audience to judge, NOT YOU.



Lol, downplaying on calling other people inexperience, please, my experience is just as fine.

For someone who tries to SELL "Mortgage | ASB Loan | Personal Loan | Insurance | Credit Cards"

Yes that speaks quite a lot about how experience you ah. LOL just another agent upselling himself by trashing someone else by calling them "INEXPERIENCE"


Please la, you can promote all you want, end of the day, audience here are not blind.

Of course you lack experience, it is shown through your mortgage replies, for example, you didn't know about the banks that can consolidate debts. I am not personally attacking you (unlike you when you called me a fool), I am just stating the facts. If you have been in the mortgage industry long enough, you would know about these banks that do consolidation


Also here are examples of the wrong advice that you have given which I have corrected, what else do these mean other than you not knowing the things you are talking about?

https://forum.lowyat.net/index.php?showtopi...post&p=84822064
https://forum.lowyat.net/index.php?showtopi...post&p=84773791
https://forum.lowyat.net/index.php?showtopi...post&p=84969113
https://forum.lowyat.net/index.php?showtopi...post&p=85106040
https://forum.lowyat.net/index.php?showtopi...post&p=85135449

At the end of the day, you are just an insurance agent who are hostile to everyone else in the same industry. I don't know why you would go about and act this way. Please show some professionalism and perhaps get some help - like I said, I know specialists in this area, if you would just ask I'd give their contacts to you. Also I thought you said you are done with me? Why am I still getting through your head?

Attached below is an example for 4.3% refinancing from one the banks that traditionally have higher rates than the market, let me see if I can find the 4.25% offer... regardless, 4.3% is much lower than AIA's 4.99%. Why are you asking people to refinance at a higher rate than available in the market?

Consolidating is a good thing to do, especially when you are settling off loans that are more expensive in terms of the interest rates than the ones you are currently paying for, but I dislike "financial planners" being dishonest with their prospects just for the sake of sales. The difference of interests is huge, why did you say that 0.x% difference was negligible? Because you are selling it?

Keep note that I'm not insinuating that you are being dishonest with the forummers here to promote your product, but money blurs the line separating right and wrong.

4.3%, refinancing, Ill try and find 4.25% cases


This post has been edited by wild_card_my: Jul 10 2017, 12:28 PM

Share to us especially to this forum, what's the rate given by these so-called banks. 4.25% ?

Proof it that it's a recent offer and also the clients profile whether it's a good and bad paymaster.

Sorry, in the end, you're also an insurance agent trying to solicit business in here. Don't try to fool people.

LOL I just love the way you try to keep changing the topic and diverting the attention, and clearly you do not know what AIA has to offer in terms of refinancing which is beneficially for people who are applying for it.

I am tired to explain to another consultant who doesn't do AIA loan at all. And he's publicly trying to bring down a product.

*To add on, comparing a fluctuating loan 4.3% and fixed rate loan as if 4.3% will stick forever at that rate and assuming will not go higher than 4.99%, good, I give you a clap. When then interest rate increase further soon, I'll see what you gonna sing in here.

Just because you can't sell it, so you trash it, lol typical loan consultant you are, singing to the tune to what you want people to listen to you. Sorry you're speaking to another person who knows his thing about loans and financing planning. Stop fooling others and lying to another person.

Probably if you're dealing with a novice, you might have an upper hand with so called knowledge, but a person like you using it to twist to people on what you want them to hear and convince them to buy from you. That's just sad.

Anyways, I shall refrain to lower my level to yours. Out.

This post has been edited by lifebalance: Jul 10 2017, 02:16 PM

I rest my case. Keith Ng, inexperienced, trying to dabble in mortgage to up sell insurances. Little does he know he is dealing with a 7-year mortgage veteran. You don't know about the 4.25% because you are an insurance agent, you deal with mortgages only to sell insurance. I on the other hand, am a full-time mortgage broker. How can you have the levels of mortgage understanding and experiences to fight me? You can't and you wont.

Also, I archived this page so you cant edit your mistakes anymore. it will live forever, every time people ask for your credentials, I will point out to this page.

https://archive.is/3OlSz

This post has been edited by wild_card_my: Jul 10 2017, 03:29 PM

good read..leulz

This post has been edited by adamhzm90: Jul 10 2017, 02:48 PM

Thank you mate. I strive to help others, as a mortgage broker I love educating people about mortgages including for purposes of buying and refinancing.

wanted to do refinancing but property owner unable to sign legal documents due to unconscious. what are the ways to do refinance?
3rd party charge

Unconscious? Did he sign the power of attorney to anyone?

Hi, is it a good idea if i redraw a home loan to buy car?

I have a home loan that I am very close to settling after less than 10 years.
Seeing that home loan interest is usually less than car loan interest, will it be a good idea i redraw the home loan to pay for the car?

Of course, I will still pay/settle the loan asap, or at a minimum, pay it as much as a car loan's monthly payment.

So, do I save up in interest rate? Is there a con in this?

redraw? it depends, the HP interest is not the same as the reducing balance interest, so to make a comparison, I would need to know the loan amount u need, and the tenure that you plan to take, if you were to take a HP.

Then we can do a direct comparison, at least based on the interest rates..

What is HP?

sorry, hire-purchase, which is the loan used to buy a car, a car loan

a car loan's interest is calculated differently compared to housing loan. To compare the two, I would need to know the amount that you would be willing to take and the tenure for the car loan, then I will do some calculation to convert the car loan interest to a housing loan interest (reducing balance), that way we can compare the two, if you should withdraw the amount from your housing loan vs applying for a new car loan

May I know in the first place, who is the owner of the property ? I'm referring to the SPA

Is it you + property owner ?

or solely Property Owner ?

if the owner is unconscious, it's highly unlikely he can sign any Power of Attorney for someone else to handle it on his behalf.

You may need to seek for a lawyer's advise on this if you want to seriously handle the matter.

You see, whenever you redraw (refinance) a home loan, it involves loan agreement with the new bank which might incur legal fees, stamp duty and valuation fees. This amount itself can sometimes be enough to pay 10 - 30% of the car price depending on the price of your car.

Another method you can use is doing top up loans which you might incur a smaller fee but still you might want to work up the figure to see if it's viable to buy the car by doing a top up loan or refinancing.

If I'm not mistaken car loan interest can be ranging from 1% - 3% depending it's a foreign car or local car.

Housing loan interest can be ranging 4.25 - 5% depending on your scoring.

If I were you, I wouldn't purchase the car until I'm sure I've sufficient downpayment to pay for the car because the car depreciates in value whereas the property appreciates.


HP is Hire Purchase (English for Car Loan)

Sorry, I don't know the correct term for it, but redraw in my case is not refinancing. It's to draw out the money I've paid earlier to settle my loan faster. I just need to pay RM50 to withdraw it.

Currently my home loan interest is 4.5%.
Let's say I want to buy a 130,000 car.. in which the car loan might cost... 2.5% interest rate for 9 years (I did not really research this, pls some one correct me if i am wrong)

in this case, assuming you continue to put the 130k in the 4.5% home loan interest, you're saving 4.5% per annum of interest compared to 2.5% of interest over the period of 9 years.


The amount can be be quite a lot especially car loans are calculated based on simplified interest rate where as housing loan is based on compounded interest.

Of course we can't save everything and not enjoy what we earn, so perhaps it'll be better to just pay 10% downpayment or the acceptable amount that you would like to put into the downpayment for the car and put the rest into the housing loan at the mean time.

Yeap, understand that the redraw is not refinancing. Just want to compare, would it be better to redraw or to get a new hire-purchase

Anyway, here it is.. if the HP is at 2.5%, apparently it may be a little bit better if you just apply for a HP since your current mortgage has a lower effective rate that the HP...



This post has been edited by wild_card_my: Jul 11 2017, 03:36 PM