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Refinancing your property for cash, and credit consolidation
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fun_feng
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 Jul 11 2017, 02:35 PM
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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?
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fun_feng
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Jul 11 2017, 02:48 PM
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QUOTE(wild_card_my @ Jul 11 2017, 02:43 PM) 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? |
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fun_feng
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Jul 11 2017, 03:26 PM
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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)
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fun_feng
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Jul 12 2017, 10:11 AM
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QUOTE(cfa28 @ Jul 11 2017, 06:05 PM) Please note that you cannot redraw any amount that you utilise your EPF Account 2 in the past. I dont quite understand this part. What does EPF acc 2 got to do with anything? |
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fun_feng
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Jul 12 2017, 01:06 PM
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QUOTE(cfa28 @ Jul 12 2017, 10:14 AM) If you have used your EPF Account 2 to pay down your Housing Loan previously, I was told that you CANNOT redraw out this amount in the future. U sure? How do they even track this?  After u withdraw EPF acc 2, the money is transferred to your bank acc and that's it. U can do whatever you want with the money. The bank won't even know if you use the money to pay house loan |
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fun_feng
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Sep 7 2018, 12:38 PM
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QUOTE(Chouetlyn @ Sep 7 2018, 11:05 AM) Hi sifu, I am interested to know. My current bank is charging at 4.66% interest and market is 4.45-4.4%. Can we check the amortisation table for the current table because.. The Interested rate changes a few times since few years ago and I have additional payment. If based on the balance of my loan currently and the repayment states by the bank, I back calculated and it yields 7.1% interest rate it is super concerning How do you calculated to 7.1%??? 4.66% to 4.4%, i dont think it's worth the effort to refinance.. due to all the lawyer, charges feess.. In a 100k loan, the difference of 0.26% is just 260.... U can add up your cost and see |
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