I hav a house loan

Duration = 30 years
Loan amount = 443 220 (89%)
Monthly pay = 2200

Outstanding = 416 000
Advanced paid = 40000
Pay since Oct 2012 = 4 years (2200 x 48 months) = 105 600

My question is how is the Outstanding calculated?
Interest around 4.3% I think.

Can someone please explain how does the calculation work?
Has the outstanding Minus off Advanced?
Or when Advanced > Outstanding = Fully Paid?

Did you include the BLR rate?

Interest is computed on daily rest based on your outstanding amount. Unless you're on a full-flexi loan, the outstanding amount does not take into account the advance payment.

better post at its proper place?

https://forum.lowyat.net/topic/3437581 or https://forum.lowyat.net/PropertyQ&A

So, from info here, can we know roughly how much interest had been paid?

Loan Amount - Outstanding = Principal paid?
443 220 - 416 000 = 27 220

Installment - Principal = Total Interest Paid?
105 600 - 27 220 - advance (40000) = 38 380?
Around 800 per month paid for interest?

amortisation formula
your monthly repayment in the early years will be used to serve the bank interest more rather than to reduce the outstanding loan amount.

yes correct. refer to my answer above.

You can use online calculators such as this to see how much of your monthly installment is being used for principal repayment and interest respectively. By right, your bank should have provided you an amortization schedule together with your loan contract.

Personally, I use Karl's Mortgage Calculator. It's available on both the App Store and Google Play. Works well, and allows you to see the effect of extra payments etc.

Thank you for all the replies.
I will take a look later.

1st of all, what type is your house loan? conventional loan, islamic loan or flexi loan?

Conventional. BLR that time Year 2012 when signed up for loan was 6.6, if I remember correctly, bank ?rate was ?2.3%. So, interest rate is 6.6 - 2.3 = 4.3%?

Hi there

The interest is calculated on a daily rest based on your interest rate per annum and the current outstanding balance.

I've calculated for you as per attachment

Your outstanding should be around 411,714.89

If you mentioned that you are paying RM2,200 on the dot, then your interest rate is 4.325%, not 4.3%

This post has been edited by lifebalance: Sep 22 2017, 09:13 AM


Attached thumbnail(s)

for conventional loan has been show from the above post. while for your advance payment, need to check on your loan contract for any penalty if pay in advanced by yourself and not write-in to the bank.

Some case, those advance payment will be bring forward to the last month of the loan which is month-n. It will not be auto deduct from the current outstanding payment.

Let say if I were to fully pay today, I only need to pay the outstanding, RM 411 714 right?

Does the interest 300k need to be pay too?
v1n0d

if you put in 100% amount then yes you are paying the outstanding 411,714 without incurring any interest, but this is not possible because if you put in the full amount, it might trigger bank to think that you want to fully settle off the loan and might lead to early settlement penalty.

lifebalance sums it up well. Check with your bank officer to confirm if there are any additional charges before you bank in the money.

Let say my mom wants to chip in 100k from her EPF as Advanced Payment.

Is this advisable n it will reduce overall interest since it is daily rest, right?

Because if her EPF divided after she’s gone, we, siblings n dad, may not share same objective to put into house.

The house loan is under TWO names, me n bro.
House deed is jointly including my mom.

Any future implications, u think? lifebalance

well that depends on your interest rate that you pay to the bank vs the interest gain from EPF investment.

if the loan interest is higher than EPF, then by all means use EPF to pay off

but if EPF return is higher than the loan interest, then it's advisable to keep it in EPF.

Since you are mentioning that in the event your mom passes away, you and your siblings would like to go separate ways but the SPA belongs to your Mom, best is that she either change the SPA into both of your names or otherwise get her to write a will on who gets the property.

If there is no will, then there will be problems in handling down the property later on when she passes away.

There’s bunch of home loan app calculators, I use “My Home Loan Calculator”. There’s a section that shows how much is deducted for your principle and interests each month. However, it’s still an estimate, best to check with your banker. They should provide yearly statements.

What is the impact of OPR increase expected on next year January on BLR interest?

OPR increase 0.25?
BLR increase 0.25?

A basis increase of 0.25 on RM400k loan? Will be around how much in long term?
Extra RM60 per month?

Current BLR = 6.85
Current interest rate = 6.85-2.3 = 4.55

Does OPR increase mean bank fixed deposits interest will also increase?
v1n0d

This post has been edited by AznRicy: Dec 29 2017, 12:49 PM

when OPR increases, FD rate increases as well.

Assuming 500k loan, 35 years tenure

Interest rate 4.4% - 2,335 monthly installment, total interest in 35 years - RM980,872

Interest rate 4.65% - 2,412 monthly, total interest in 35 years - RM1,013,434

So that's about extra 33k interest for 0.25% increment

Y when OPR cut, suppose BLR will cut too?
Y I did not see reduction in monthly payment?

But when OPR increased, BLR increased I see need pay extra rm50 every month.

v1n0d

Sorry, not sure why myself. Hopefully someone from the banking line can help explain.

BR and BLR runs on a different system

the movement of the BLR depends on the major bank in Malaysia, in this case (MBB)

Newbie on housing loan. hope someone can answer my question.

I have a semi-flexi house loan (daily interest) and my understanding is if i have made advance payment, my principle amount will reduce so as my loan tenure? Am i right?