Hi,

Is anyone using Maybank mortgage loan here?

I’m totally confused by Maybank officer, the lady herself also confused when I digged more info.

There are two flexi loan offered by Maybank.
1) Maxihome (Semi)
2) Maxihome Flexi (Full flexi)

My queries:

I’m asking as Maybank Monthly repayment works quite differently if compared with other bank ( e.g CIMB)

1) what’s the differences between the two ? The Maybank officer said no different, just MaxiHome flexi got a current account & withdrawal no charges.

2)From my understanding, e.g if loan amount is RM600k (monthly repayment RM3.1k) even after i throw in RM200k (monthly repayment still RM3.1k) ; it just shorten the loan tenure and monthly repayment will never go down. Does this appproach apply to maxihome (semi) or maxihome flexi (full)? OR both ?

3) for maxihome flexi (full), principal amount is fixed tilll end of my tenure, but interest rates varies as it depends on the amount of money that I pump in. Is this correct ?

Kindly enlighten.

Thanks!

As I know the way that semiflexi and flexi works are the same. The money you pump in will reduce the principal that is used for the interest calculation. Let's say you still owe bank 500k, and you put 100k into the account. Your interest rate is 4.5%. Daily interest will be calculated as below.

((500k - 100k) x 4.5 / 100) / 365.

You will still need to service the full amount of your instalment monthly, just that as you said the loan tenure will be shorten because a bigger portion of your instalment goes into the principal instead of pay interest to bank.

For semiflexi, if you want to withdraw your money out from the account, you will need to pay a minimum sum to the bank and bank usually need a few days to process your application.

For flexi, you are free to withdraw your money whenever with no charges (my experience with Alliance and HSBC is free of charge, not sure other banks). However if your loan is not islamic loan, then bank will charge RM10.60 monthly for the maintenance of the account.

To answer your question directly,

1) As stated above, difference is flexi can withdraw whenever you want, but there is a maintenance fee of RM10.60 every month. Semiflexi need to pay when withdraw and not immediate, but without the maintenance fee.

2) Yes, it applies for both type.

3) interest rates does not vary. What changes is the amount of interest that you paid to bank.

Installment amount never change unless interest rate increase.
Tenure will change. - faster paid up.
Both same except - full flexi have to pay monthly fee (10). Difference between semi and full is in the withdrawer and extra payment part - sorry this part I forgotten lol. Different bank different ways. I know full flexi is more flexible.

Mine is full flexi (not maybank)

This post has been edited by idoblu: Mar 22 2018, 04:13 PM

Hi is the maybank maxi home ezy a new product in the market for first home purchasers? Is it any good?

questions.. scenario as below.

loan 500K for 30yrs... if i made advance pay for 5 yrs worth of installment to reduce the principal, meaning my loan tenure now become 25yrs or lesser.. at anytime if i am hit with financial difficulties and might not be able to continue servicing the monthly installment, does it mean i can withdraw the advance payment amount up to 5yrs worth to continue servicing my installment?

any service fee incurred they will charge per withdrawal?

Is there any banks that would allow for reducing monthly repayment instead of shorten the loan tenure?

No issue, they are more or less same.

If you want to use your advanced payment regularly, go for full flexi.

If you only use your advanced once in a while, go for semi flexi.

Just a minor bank charges thing.

I do also thought MBB Semi would reduce installments based on their website

But AFAIK,

Advance payment got 2 types
1) To pay your monthly : Eg. Monthly Installment is RM1000, you dump in via online RM12000, meaning you have paid for 12 months
2) To reduce interest : Eg. Monthly Installment is RM1000 and your loan is RM100000, you dump in via counter(Semi) RM10000, then you will save interest of RM 10000 (It becomes 90,000 x 4.5%) but your spread rate of principal payment is higher but monthly installment remains the same RM1000), this you can opt to withdraw your money as its still inside

The other one is Prepayment : To reduce your principal, Loan RM100000, pay RM10000, so now it becomes RM90000 x 4.5% but monthly installment remains the same but only tenure reduced.


The only way to reduce your installment is prolly refinance your mortgage OR asking the bank to "restructure" your mortgage to lower installment but however, this may show in your CCRIS in a bad manner as restructure in banks are only opt for customers that cant afford to pay therefore, it somehow shows a bad record I suppose.


I would also like to know if there are any banks that offer this reduce installment facility loan for mortgage.

Actually Maybank full Flexi does. I'm using it. The more money u put into the current account, the lesser interest you will be paying. The principal deducted is the same for every month. Your monthly repayment is never the same each month as your interest charges depends on how much money you put into your current account to offset it.

From my understanding when I query the MBB loan officer, it is very similar to Rexoz's explanation. However he mentioned that you can pay less than the original monthly repayment, but the difference will be deducted from the money you dumped in.

Eg.

Loan 500k
Installment 2500

If you dump in 100k, interest will be calculated based on 400k.
When you pay 2000 the next month, the missing 500 will be deducted from the 100k paid above.


I take it that the changing monthly repayment is only applicable to full flexi then?

I don't know about semi but yes for my Maybank full Flexi is monthly changing repayment. And you don't physically pay it, ie transfering money from 1 account to another. Maybank uses only 1 current account that works as your loan acc and acc to put money to offset interest. Every month it will just automatically deduct the money u put in as your installment.

As your installment = principal + interest charges. And your principal deducted is the same thru out the tenure. Your interest charges will reduce every month as your principal reduces, hence your repayment reduces every month too. And of course if you put more money into the current account, you can save more on interest charges.

This current acc can be link to atm card for withdrawal, and monthly fee is RM 5. Not a banker, just sharing my experience with Maybank full Flexi. Pretty convenience to me.

This post has been edited by lll5459: May 2 2018, 10:28 PM

Excellent explanation.

Semi flexi works the same way. However, each withdrawal of fund will be charged.

Full flexi can withdraw fund as often as you like , without withdrawal charges.

Thanks for the very good info

Yeah, it is always better to inform them when you do advance payment.

For your i), ii), iii), I am not sure as my mortgage is not MBB.

But for now I assume like what the rest suggested, MBB Full flexi which works like OD will be able to reduce your monthly installment. If not then next time refinance it then ahahah

I clarified with the loan officer, in the event of excess payment:

i) any excess payment is automatically used to reduce principle
ii) interest will be calculated based on new balance
iii) subsequent monthly installment will first be deducted from the excess from loan account
-if excess payment is unable to cover monthly installment you need to top up
-if excess payment is able to cover monthly installment you can choose not to pay

nothing was mentioned about reducing interest repayment on the next payment as monthly repayment is fixed, but
overall interest is definitely reduced

this is confusing, maybe i'll find out once the account is ready.

Not sure if it's due to the package, but it's MaxiHome without OD. According to the officer, OD requires rm5 while none OD charges RM25 for each withdrawal of excess payment. All payments/withdrawals can be done via m2u without the need to visit branch.

If full flexi allows for automated reduction of monthly payment, sounds like that may be a better option?

Thank you friend for your kind and clear sharing.

Yeah I second this. What do you guys think of this? It seems better than both of them right?

May i know this is your assumption or is true evidence that the monthly repayment will not reduce?

can i know your loan name? eg : Maxi home, Maybank comodity murabah financing or etc.. coz im not sure mine can reduce monthly repayment or not but i would love to have it reduce and park money in my loan account

It is based on my experience currently with HSBC flexi loan.