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.

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