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> Which bank loan offer should I sign?

wallsticker
post Jun 8 2018, 02:58 AM, updated 6 months ago

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Recently I had applied housing loan from few banks all got approved but looking at the rate offer by them, I

Public Bank : offered 1st year 4.35%, 2nd year onward bounced back to normal rate
Maybank : offered 4.5%

I heard that public bank will let you have a low rate 1st year but after that they will increase the the rate to very high rate. Anyone experience this before?
And Maybank is actually my salary releasing account, if go for Maybank I assume it's easier for me to pay the installment?

Don't know how to choose.....


tongyk
post Jun 8 2018, 03:44 AM

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choose the lowest rate one, all rates are stated in LO, cannot simply increase.
tikusniaga
post Jun 8 2018, 04:55 AM

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Short term low rate is like a trap.
wallsticker
post Jun 8 2018, 08:21 AM

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QUOTE(tikusniaga @ Jun 8 2018, 04:55 AM)
Short term low rate is like a trap.
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Hi, mind sharing why it's like a trap?
JASON_01
post Jun 8 2018, 08:46 AM

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QUOTE(wallsticker @ Jun 8 2018, 02:58 AM)
Recently I had applied housing loan from few banks all got approved but looking at the rate offer by them, I

Public Bank : offered 1st year 4.35%, 2nd year onward bounced back to normal rate
Maybank : offered 4.5%

I heard that public bank will let you have a low rate 1st year but after that they will increase the the rate to very high rate. Anyone experience this before?
And Maybank is actually my salary releasing account, if go for Maybank I assume it's easier for me to pay the installment?

Don't know how to choose.....
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PBB offered 1st year 4.35% and subsequent years 4.47% and will follow BR rate (current BR: 3.77%) if increase or decrease

MBB still can nego to 4.47% depend on your documents


gugukrez
post Jun 8 2018, 08:54 AM

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QUOTE(wallsticker @ Jun 8 2018, 08:21 AM)
Hi, mind sharing why it's like a trap?
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last year signed.. first year 4.2.. 2nd year bounced to 4.5..

you maybe can try RHB.. they said is lowest.. but i sign of hlb due to rhb cant get the valuation..
luminarist
post Jun 8 2018, 09:02 AM

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Can share with you the loan rates I have now for your reference. These are rates throughout tenure. Adjusted for the recent OPR increase.

Standard chartered 4.5%
Public bank 4.52%
Maybank 4.47%
wallsticker
post Jun 8 2018, 09:12 AM

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QUOTE(luminarist @ Jun 8 2018, 09:02 AM)
Can share with you the loan rates I have now for your reference. These are rates throughout tenure. Adjusted for the recent OPR increase.

Standard chartered 4.5%
Public bank 4.52%
Maybank 4.47%
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oooo......so if we look at normal rate offered now, MBB is lower than PBB
luminarist
post Jun 8 2018, 09:17 AM

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I applied PBB back in March this year before, they were offering me

1. With MRTA
1st year : BR + 0.58% (4.35%pa)
Thereafter : BR + 0.70% (4.47%pa)

2. If without MRTA
Whole tenure : BR + 0.85% (4.62%p.)

Forgot to add, my PBB loan is with MRTA, MBB and SCB are without. So I guess u can say I didnt nego well enough for my PBB loan last time. Oh and remember to ask if these are with or without MRTA. To me, MRTA is useless as I do not have or plan to have any dependents in the near future.
ManutdGiggs
post Jun 8 2018, 09:54 AM

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Lower rate for 1st yr onli benefit subsales

Undercon hardly hav saving on tat even for the lowest flr
kkkw80
post Jun 8 2018, 10:29 AM

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Just signed mine with UOB at BR+0.5%
Sam Kk
post Jun 8 2018, 10:51 AM

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Hi! For mortgage loans usually the BR (base rate) can fluctuate. Some banks will have zero entry fees and some not. Some will have penalty for early settlement within 3 to 5 years, some do not (does not apply to Islamic loans if I am not wrong). MRTA preferably to include. Interest rates not much of a choice to borrower and the difference may not be substantial. Just sharing my thought.
wallsticker
post Jun 8 2018, 11:03 AM

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QUOTE(luminarist @ Jun 8 2018, 09:17 AM)
I applied PBB back in March this year before, they were offering me

1. With MRTA
1st year :  BR + 0.58% (4.35%pa)
Thereafter : BR + 0.70% (4.47%pa)

2. If without MRTA
Whole tenure : BR + 0.85% (4.62%p.)

Forgot to add, my PBB loan is with MRTA, MBB and SCB are without. So I guess u can say I didnt nego well enough for my PBB loan last time. Oh and remember to ask if these are with or without MRTA. To me, MRTA is useless as I do not have or plan to have any dependents in the near future.
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My application all include full mrta. PBB offer me exactly same rate as yours.
luminarist
post Jun 8 2018, 11:12 AM

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QUOTE(wallsticker @ Jun 8 2018, 11:03 AM)
My application all include full mrta. PBB offer me exactly same rate as yours.
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Then deciding factor for you would be whether is it necessary to get MRTA, lock in period, any % capping for prepayment to save on interest, advance payment withdrawal limit and charges.

The above would be the things to look out for as well other than the rates.

For PBB case, they kinda force u take MRTA so that u can get the better rates. Looking back now, I would've taken all my loans from MBB instead due to better terms.
oldies1950
post Jun 8 2018, 11:22 AM

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QUOTE(luminarist @ Jun 8 2018, 12:12 PM)
Then deciding factor for you would be whether is it necessary to get MRTA, lock in period, any % capping for prepayment to save on interest, advance payment withdrawal limit and charges.

The above would be the things to look out for as well other than the rates.

For PBB case, they kinda force u take MRTA so that u can get the better rates. Looking back now, I would've taken all my loans from MBB instead due to better terms.
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MRTA is Optional. Also UNNECESSARY as BANKS have your Property title in their hands. It a benefit to the BANKS as you are the one paying for the MTRA !!!

Another IMPORTANT issue is the settlement of your LOAN earlier than expected.

Very Likely as you will have salary increment or Bonus or Better Prospect or Strike Lottery !!!! rclxm9.gif

BANKS will Penalise you for EARLY Settlement. As such consider Islamic Loans as they have NO penalty for early settlement. please check with the BANKS.

Also Insurance for your property ? Bank select their OWN Insurance company ? ( More Expensive ) Or you own insurance company ? ( Again Unnecessary , IMO )

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