Welcome Guest ( Log In | Register )

Outline · [ Standard ] · Linear+

> pay extra for house loan

views
     
Chrizalix
post May 31 2017, 08:01 PM

Getting Started
**
Junior Member
53 posts

Joined: Nov 2009
QUOTE(pokeat @ May 31 2017, 12:38 PM)
Does bank check the source of the lump sum u pay additional ? Let's say I kena jackpot or some side income ?

I always think that get max tenure and settle ASAP is the best way.
*
I don't bank will check the source of income, but IRB will definitely put extra eyes on you if your personal tax is not nicely done. If you are a business owner, they might even look after your business income, susah oh.

Jackpot is a different story.
TSBluelight1989
post May 31 2017, 09:34 PM

New Member
*
Junior Member
42 posts

Joined: Apr 2017
QUOTE(Chrizalix @ May 31 2017, 07:54 PM)
Definitely a yes.
Assuming the interest rate is at 4.3%
500K + 4.3% for 420 months =  Total payment is about 967,987 (Interest = 467,987)
Assuming you have 300K in hand and that can hold for 5 years.

Dumping all into flexi loan account for the 1st 5 years and withdraw immediately at the 6th years.
The total payment would be about 749,696 (Interest = 249,696)
Tenure reduce to 326 months instead, almost 8 years shorter.

Total saving = 218,291

I don't see how a 300K taruh unit trust can give you a better return than this. Hope this help.
*
300k in UT, high risk profile, 3 yrs time u got 500k if u sell, then one shot bayar habis ur 500k condo? not like that?

This post has been edited by Bluelight1989: May 31 2017, 09:34 PM
heavensea
post May 31 2017, 10:17 PM

Look at all my stars!!
*******
Senior Member
9,616 posts

Joined: Dec 2013
QUOTE(chiahau @ May 31 2017, 07:59 AM)
Guna calculator kira la bang.

6.3% for 200k for 35 years = 1,697,048.50

800k loan for 35 years repayment = 1,548,783.60

Contra off see how much you earn?  biggrin.gif
*
QUOTE(kochin @ May 31 2017, 12:47 PM)
long story short.
yes.
*
So settle loan is paling cantek punya option?
(Even though with CONSISTENTLY returns of 6% p.a?)
Consistently for 35 tahun while con ran firm not losing job or pay cut maciam fairy tales nia.

I might settle own stay rumah#kedai asap if be able to do so financially.

This post has been edited by heavensea: May 31 2017, 10:19 PM
Chrizalix
post May 31 2017, 11:03 PM

Getting Started
**
Junior Member
53 posts

Joined: Nov 2009
QUOTE(Bluelight1989 @ May 31 2017, 09:34 PM)
300k in UT, high risk profile, 3 yrs time u got 500k if u sell, then one shot bayar habis ur 500k condo? not like that?
*
I think the keyword is "HIGH RISK" vs A guarantee cost saving while you still can get back your 300K in the end.
And having say a 3 years return of 200K from what I see is overoptimistic.

Also, if you are taking islamic mortgage loan, there is a penalty for early settlement as well.
chiahau
post Jun 1 2017, 07:54 AM

Fatthau StalKer
********
All Stars
14,074 posts

Joined: Aug 2009
From: Malaysia


QUOTE(heavensea @ May 31 2017, 10:17 PM)
So settle loan is paling cantek punya option?
(Even though with CONSISTENTLY returns of 6% p.a?)
Consistently for 35 tahun while con ran firm not losing job or pay cut maciam fairy tales nia.

I might settle own stay rumah#kedai asap if be able to do so financially.
*
You settle loan, you lost opportunity cost lor.

See how you look at it.

I've seen some people keep getting salary increment all the way to 60 years old.

And I have seen some people jobless by 35 years old.

Yes, there's no gurantee of perpetual employment in life.

But by settling early, you forfeited the capacity to make extra money with the cash on hand.

And if the UT funds can make 500k in 5 years time, why not double it to 1m within 10~15 years instead of settling the loan earlier?

Settle the loan earlier, means no more 500k to invest. Just zero debt. Have to start back from zero.
TSBluelight1989
post Jun 1 2017, 08:50 AM

New Member
*
Junior Member
42 posts

Joined: Apr 2017
QUOTE(chiahau @ Jun 1 2017, 07:54 AM)
You settle loan, you lost opportunity cost lor.

See how you look at it.

I've seen some people keep getting salary increment all the way to 60 years old.

And I have seen some people jobless by 35 years old.

Yes, there's no gurantee of perpetual employment in life.

But by settling early, you forfeited the capacity to make extra money with the cash on hand.

And if the UT funds can make 500k in 5 years time, why not double it to 1m within 10~15 years instead of settling the loan earlier?

Settle the loan earlier, means no more 500k to invest. Just zero debt. Have to start back from zero.
*
15 yrs also no guarantee return in UT, u know some ppl lost money in UT? settle loan is safer way to go i think. u settle loan u said u dun have cash on hand? ur loan settle means every month u have few thousand on hand dy, still can use tht money to run ur burger stall at night etc xD
KuzumiTaiga
post Jun 1 2017, 09:00 AM

Spends too much time with mechanical keyboards
*******
Senior Member
3,283 posts

Joined: Jun 2008
From: Cheras ~ London WC1E 7HU~ Shenzhen



QUOTE(Chrizalix @ May 31 2017, 07:54 PM)
Definitely a yes.
Assuming the interest rate is at 4.3%
500K + 4.3% for 420 months =  Total payment is about 967,987 (Interest = 467,987)
Assuming you have 300K in hand and that can hold for 5 years.

Dumping all into flexi loan account for the 1st 5 years and withdraw immediately at the 6th years.
The total payment would be about 749,696 (Interest = 249,696)
Tenure reduce to 326 months instead, almost 8 years shorter.

Total saving = 218,291

I don't see how a 300K taruh unit trust can give you a better return than this. Hope this help.
*
many don't seem to realise this!
user posted image

chiahau
post Jun 1 2017, 09:16 AM

Fatthau StalKer
********
All Stars
14,074 posts

Joined: Aug 2009
From: Malaysia


QUOTE(Bluelight1989 @ Jun 1 2017, 08:50 AM)
15 yrs also no guarantee return in UT, u know some ppl lost money in UT? settle loan is safer way to go i think. u settle loan u said u dun have cash on hand? ur loan settle means every month u have few thousand on hand dy, still can use tht money to run ur burger stall at night etc xD
*
As I said, there's no gurantee in life.

Yeah, if you have the absolute money to settle the loan, go ahead lor.

Everyone has a different point of view in this matter.

I won't mind leveraging the maximum period of the loan to get the opportunity cost to divest my money somewhere else biggrin.gif

If I have 300k in cash and the capacity to honor my installment to the bank without failure every month, I'd just maintain status quo and put the money elsewhere.

This post has been edited by chiahau: Jun 1 2017, 09:19 AM
Chrizalix
post Jun 1 2017, 04:12 PM

Getting Started
**
Junior Member
53 posts

Joined: Nov 2009
QUOTE(chiahau @ Jun 1 2017, 09:16 AM)
As I said, there's no gurantee in life.

Yeah, if you have the absolute money to settle the loan, go ahead lor.

Everyone has a different point of view in this matter.

I won't mind leveraging the maximum period of the loan to get the opportunity cost to divest my money somewhere else  biggrin.gif

If I have 300k in cash and the capacity to honor my installment to the bank without failure every month, I'd just maintain status quo and put the money elsewhere.
*
Of course it is, that's why it is good to have a flexi or semi flexi loan. Unless you have a good framework to invest something with good yield returns, such as stock trading, purchase of cryptocurrencies to wait for the price to shoot up, then it is good to go.

Otherwise it is always good to store some cash to flexi loan, and do withdrawal when it is necessary. You will be surprised how much interest you could save up by just putting that amount of money a month, a year.

In my opinion, saving interest is part of the profit gaining for me.


chiahau
post Jun 1 2017, 04:20 PM

Fatthau StalKer
********
All Stars
14,074 posts

Joined: Aug 2009
From: Malaysia


QUOTE(Chrizalix @ Jun 1 2017, 04:12 PM)
Of course it is, that's why it is good to have a flexi or semi flexi loan. Unless you have a good framework to invest something with good yield returns, such as stock trading, purchase of cryptocurrencies to wait for the price to shoot up, then it is good to go.

Otherwise it is always good to store some cash to flexi loan, and do withdrawal when it is necessary. You will be surprised how much interest you could save up by just putting that amount of money a month, a year. 

In my opinion, saving interest is part of the profit gaining for me.
*
Yeap.

Everyone has different opinion on what's good for them.

I myself have a Full flexi account for my loans.

Just that I don't usually dump excessive cash inside biggrin.gif
heavensea
post Jun 1 2017, 04:27 PM

Look at all my stars!!
*******
Senior Member
9,616 posts

Joined: Dec 2013
QUOTE(Chrizalix @ Jun 1 2017, 04:12 PM)
Of course it is, that's why it is good to have a flexi or semi flexi loan. Unless you have a good framework to invest something with good yield returns, such as stock trading, purchase of cryptocurrencies to wait for the price to shoot up, then it is good to go.

Otherwise it is always good to store some cash to flexi loan, and do withdrawal when it is necessary. You will be surprised how much interest you could save up by just putting that amount of money a month, a year. 

In my opinion, saving interest is part of the profit gaining for me.
*
Indeed, especially for those who can't handle bear market.
heavensea
post Jun 1 2017, 04:28 PM

Look at all my stars!!
*******
Senior Member
9,616 posts

Joined: Dec 2013
QUOTE(chiahau @ Jun 1 2017, 04:20 PM)
Yeap.

Everyone has different opinion on what's good for them.

I myself have a Full flexi account for my loans.

Just that I don't usually dump excessive cash inside  biggrin.gif
*
need maintenance cost mah?
chiahau
post Jun 1 2017, 04:30 PM

Fatthau StalKer
********
All Stars
14,074 posts

Joined: Aug 2009
From: Malaysia


QUOTE(heavensea @ Jun 1 2017, 04:28 PM)
need maintenance cost mah?
*
My RHB full flexi needs little maintenance but it's a cacated full flexi account indeed.

It's okay la, 200 ringgit per year the most only. Small money actually.


heavensea
post Jun 1 2017, 05:03 PM

Look at all my stars!!
*******
Senior Member
9,616 posts

Joined: Dec 2013
QUOTE(chiahau @ Jun 1 2017, 04:30 PM)
My RHB full flexi needs little maintenance but it's a cacated full flexi account indeed.

It's okay la, 200 ringgit per year the most only. Small money actually.
*
Ya small cost compared to saved interest, semi flexi by rhb need to "park" 1k in that account (min) forever until close it.
Win Win Inspiration
post Jun 1 2017, 05:03 PM

Look at all my stars!!
*******
Senior Member
2,708 posts

Joined: Nov 2012


QUOTE(Chrizalix @ May 31 2017, 07:54 PM)
Definitely a yes.
Assuming the interest rate is at 4.3%
500K + 4.3% for 420 months =  Total payment is about 967,987 (Interest = 467,987)
Assuming you have 300K in hand and that can hold for 5 years.

Dumping all into flexi loan account for the 1st 5 years and withdraw immediately at the 6th years.
The total payment would be about 749,696 (Interest = 249,696)
Tenure reduce to 326 months instead, almost 8 years shorter.

Total saving = 218,291

I don't see how a 300K taruh unit trust can give you a better return than this. Hope this help.
*
This is very interesting to know!
One question mate - do we get interests for the Advanced Payment that we placed in the Loan Account? Don't think so right?
Chrizalix
post Jun 1 2017, 05:15 PM

Getting Started
**
Junior Member
53 posts

Joined: Nov 2009
QUOTE(Win Win Inspiration @ Jun 1 2017, 05:03 PM)
This is very interesting to know!
One question mate - do we get interests for the Advanced Payment that we placed in the Loan Account? Don't think so right?
*
I'm glad it is helpful !
Nope, basically, any amount that pays on top of the monthly repayment, all the amount will go straight to the principal amount rather than interest.
chiahau
post Jun 1 2017, 05:43 PM

Fatthau StalKer
********
All Stars
14,074 posts

Joined: Aug 2009
From: Malaysia


QUOTE(heavensea @ Jun 1 2017, 05:03 PM)
Ya small cost compared to saved interest, semi flexi by rhb need to "park" 1k in that account (min) forever until close it.
*
No difference for me.

Got rhb premier banking so forced to keep 10k in current account also tongue.gif
heavensea
post Jun 1 2017, 05:56 PM

Look at all my stars!!
*******
Senior Member
9,616 posts

Joined: Dec 2013
QUOTE(Chrizalix @ Jun 1 2017, 05:15 PM)
I'm glad it is helpful !
Nope, basically, any amount that pays on top of the monthly repayment, all the amount will go straight to the principal amount rather than interest.
*
What do u think abt "investment vs own stay property"?
Shd we do the same by put more money into semi flexi loan?

 

Change to:
| Lo-Fi Version
0.0115sec    0.32    5 queries    GZIP Disabled
Time is now: 28th March 2024 - 07:08 PM