Welcome Guest ( Log In | Register )

Bump TopicReply to this topicRSS feed Start new topic Start Poll

Outline · [ Standard ] · Linear+

> RHB Home Loan Progressive Interest, Housing Loan (Financial)

blacknic
post Aug 12 2018, 10:13 AM, updated 2w ago

New Member
*
Group: Newbie
Posts: 9

Joined: Aug 2018


Hi all, recently my home loan just get approved and there is some progressive interest that I'm unclear about. I have already make a call to RHB customer service but they do not really get my question so I still unable to get the clear understanding.

This is a under-construction property, so I'm only have to pay progressive interest for the first 2 years. And now is at the stage of 20% (first 10% waived off by developer). Interest at 4.6%.

So there is one amount - lets say RM50,000, appear in my home loan account from 31st July 2018.
On 6th August 2018, the "installment amount" started to change from RM 0 to RM RM 226.95, and due date on 5th September 2018.

I guess the RM 226.85 come from calculation of 36 days interest which is 1 month + 5 days (31st Jul - 5th Aug).

RM50K x 4.6% / 365 days * 36 days = RM 226.85.

My question is where is this 1 month interest comes from?

As the RM50K only appear in my loan account transaction since 31st July. [U][B]
Shouldn't be charging me any advance interest right?

Pls help to clear my doubt on this, thanks! smile.gif
BEANCOUNTER
post Aug 12 2018, 10:29 AM

10k Club
********
Group: Senior Member
Posts: 12,740

Joined: May 2011
computer generated charges......haha

just talk to the guy that handled yr initial loan application.

I think this is the 2nd or 3rd time I read someone said they cant talk to anyone in the loan department. local banks are really suck to the max.
Ah SiAnG
post Aug 12 2018, 10:46 AM

Getting Started
**
Group: Junior Member
Posts: 268

Joined: Mar 2009
QUOTE(blacknic @ Aug 12 2018, 10:13 AM)
Hi all, recently my home loan just get approved and there is some progressive interest that I'm unclear about. I have already make a call to RHB customer service but they do not really get my question so I still unable to get the clear understanding.

This is a under-construction property, so I'm only have to pay progressive interest for the first 2 years. And now is at the stage of 20% (first 10% waived off by developer). Interest at 4.6%.

So there is one amount - lets say RM50,000, appear in my home loan account from 31st July 2018.
On 6th August 2018, the "installment amount" started to change from RM 0 to RM RM 226.95, and due date on 5th September 2018.

I guess the RM 226.85 come from calculation of 36 days interest which is 1 month + 5 days (31st Jul - 5th Aug).

RM50K x 4.6% / 365 days * 36 days = RM 226.85.

My question is where is this 1 month interest comes from?

As the RM50K only appear in my loan account transaction since 31st July. [U][B]
Shouldn't be charging me any advance interest right?

Pls help to clear my doubt on this, thanks!  smile.gif
*
Your calculation above is correct.

Once the progressive payment is released, i.e. RM50,000.00 you will have to pay the interest for the RM50,000.00 released.

The interest payable by you will be increased over the time based on the amount released by the bank to the developer, until the property is completed whereby you will have to start paying the instalments.

Anyway the due date for the payment of interest falls on 5.9.2018, it is only right that the interest chargeable is computed from 31.7.2018 up to 5.9.2018.



This post has been edited by Ah SiAnG: Aug 12 2018, 10:49 AM
blacknic
post Aug 13 2018, 08:45 AM

New Member
*
Group: Newbie
Posts: 9

Joined: Aug 2018


QUOTE(BEANCOUNTER @ Aug 12 2018, 10:29 AM)
computer generated charges......haha

just talk to the guy that handled yr initial loan application.

I think this is the 2nd or 3rd time I read someone said they cant talk to anyone in the loan department. local banks are really suck to the max.
*
BEANCOUNTER, the guy that handle my loan application doesn't seems to really understand my question as well... so...... may need advice from pro here.
blacknic
post Aug 13 2018, 08:47 AM

New Member
*
Group: Newbie
Posts: 9

Joined: Aug 2018


QUOTE(Ah SiAnG @ Aug 12 2018, 10:46 AM)
Your calculation above is correct.

Once the progressive payment is released, i.e. RM50,000.00 you will have to pay the interest for the RM50,000.00 released. 

The interest payable by you will be increased over the time based on the amount released by the bank to the developer, until the property is completed whereby you will have to start paying the instalments.

Anyway the due date for the payment of interest falls on 5.9.2018, it is only right that the interest chargeable is computed from 31.7.2018 up to 5.9.2018.
*
Ah SiAnG, Yup. It's only right if the interest is for period of 31 July - 05 Sept. But the issue is now only August, they should not supposed to charge me this much right at the moment?

Or RHB is practicing "advanced interest" charge that they based on 31 July - 05 Sept instead since the due date is 05 Sep (even though now its only August).
BEANCOUNTER
post Aug 13 2018, 09:07 AM

10k Club
********
Group: Senior Member
Posts: 12,740

Joined: May 2011
QUOTE(blacknic @ Aug 13 2018, 08:45 AM)
BEANCOUNTER, the guy that handle my loan application doesn't seems to really understand my question as well... so...... may need advice from pro here.
*
honestly I also don't understand your question....no hard feel. that's why I didn't try to answer you.
BEANCOUNTER
post Aug 13 2018, 09:12 AM

10k Club
********
Group: Senior Member
Posts: 12,740

Joined: May 2011
QUOTE(blacknic @ Aug 12 2018, 10:13 AM)
Hi all, recently my home loan just get approved and there is some progressive interest that I'm unclear about. I have already make a call to RHB customer service but they do not really get my question so I still unable to get the clear understanding.

This is a under-construction property, so I'm only have to pay progressive interest for the first 2 years. And now is at the stage of 20% (first 10% waived off by developer). Interest at 4.6%.

So there is one amount - lets say RM50,000, appear in my home loan account from 31st July 2018.
On 6th August 2018, the "installment amount" started to change from RM 0 to RM RM 226.95, and due date on 5th September 2018.

I guess the RM 226.85 come from calculation of 36 days interest which is 1 month + 5 days (31st Jul - 5th Aug).

RM50K x 4.6% / 365 days * 36 days = RM 226.85.

My question is where is this 1 month interest comes from?

As the RM50K only appear in my loan account transaction since 31st July. [U][B]
Shouldn't be charging me any advance interest right?

Pls help to clear my doubt on this, thanks!  smile.gif
*
ok....I re read again.

1st of all, when developer sent payment notice to bank, you will get a cc copy rite? look at the date of the letter. assume bank paid yr instalment on the date of the letter, did it cover the 36 days?

IF it doesn't, it means the bank is trying to overcharge its customers. If I were you, I will march into the bank branch and demand an explanation before bringing it to higher authority.
W.ROOK
post Aug 13 2018, 10:02 AM

Getting Started
**
Group: Junior Member
Posts: 287

Joined: Apr 2008
QUOTE(BEANCOUNTER @ Aug 13 2018, 09:07 AM)
honestly I also don't understand your question....no hard feel. that's why I didn't try to answer you.
*
Lol
zeroskyz
post Aug 13 2018, 10:59 AM

Getting Started
**
Group: Junior Member
Posts: 140

Joined: Mar 2009


QUOTE(blacknic @ Aug 12 2018, 10:13 AM)
Hi all, recently my home loan just get approved and there is some progressive interest that I'm unclear about. I have already make a call to RHB customer service but they do not really get my question so I still unable to get the clear understanding.

This is a under-construction property, so I'm only have to pay progressive interest for the first 2 years. And now is at the stage of 20% (first 10% waived off by developer). Interest at 4.6%.

So there is one amount - lets say RM50,000, appear in my home loan account from 31st July 2018.
On 6th August 2018, the "installment amount" started to change from RM 0 to RM RM 226.95, and due date on 5th September 2018.

I guess the RM 226.85 come from calculation of 36 days interest which is 1 month + 5 days (31st Jul - 5th Aug).

RM50K x 4.6% / 365 days * 36 days = RM 226.85.

My question is where is this 1 month interest comes from?

As the RM50K only appear in my loan account transaction since 31st July. [U][B]
Shouldn't be charging me any advance interest right?

Pls help to clear my doubt on this, thanks!  smile.gif
*
May I know if the RM226.85 due date to pay is on 5th of September 2018 ?

If due date on 5th of Sept 18, it meant you have to serve the progressive interest for the loan 50k from 5th Aug 18-4th Sept 18 (31 days).

The calculation shall be:

AUG
31 days 50,000 4.60% RM195.34
Release 50,000
31/7/18-4/8/18 RM31.51
5 days
Total: RM226.85

Hope this help. Thank you.

This post has been edited by zeroskyz: Aug 13 2018, 11:00 AM
blacknic
post Aug 13 2018, 01:00 PM

New Member
*
Group: Newbie
Posts: 9

Joined: Aug 2018


QUOTE(zeroskyz @ Aug 13 2018, 10:59 AM)
May I know if the RM226.85 due date to pay is on 5th of September 2018 ?

If due date on 5th of Sept 18, it meant you have to serve the progressive interest for the loan 50k from 5th Aug 18-4th Sept 18 (31 days).

The calculation shall be:

AUG 
31 days 50,000 4.60% RM195.34
Release 50,000 
31/7/18-4/8/18          RM31.51
5 days 
  Total:                RM226.85

Hope this help. Thank you.
*
zeroskyz, Yup you r right. the due date is on 5th Sept 2018. But why they are calculating the interest until 4th Sept 2018? As if interest only incurred after the period right?

In your explanation, I'm actually paying like "advanced interest"?

Just another way round, what if I'm paying RM50K on 5th Aug to clear all the payoff amount, then there will be no interest incurred from period of 5th Aug to 4th Sep right?

Or RHB is practicing this way and deduct out the additional in next installment amount?
blacknic
post Aug 13 2018, 01:00 PM

New Member
*
Group: Newbie
Posts: 9

Joined: Aug 2018


QUOTE(zeroskyz @ Aug 13 2018, 10:59 AM)
May I know if the RM226.85 due date to pay is on 5th of September 2018 ?

If due date on 5th of Sept 18, it meant you have to serve the progressive interest for the loan 50k from 5th Aug 18-4th Sept 18 (31 days).

The calculation shall be:

AUG 
31 days 50,000 4.60% RM195.34
Release 50,000 
31/7/18-4/8/18          RM31.51
5 days 
  Total:                RM226.85

Hope this help. Thank you.
*
zeroskyz, Yup you r right. the due date is on 5th Sept 2018. But why they are calculating the interest until 4th Sept 2018? As if interest only incurred after the period right?

In your explanation, I'm actually paying like "advanced interest"?

Just another way round, what if I'm paying RM50K on 5th Aug to clear all the payoff amount, then there will be no interest incurred from period of 5th Aug to 4th Sep right?

Or RHB is practicing this way and deduct out the additional in next installment amount?
blacknic
post Aug 13 2018, 01:06 PM

New Member
*
Group: Newbie
Posts: 9

Joined: Aug 2018


QUOTE(BEANCOUNTER @ Aug 13 2018, 09:12 AM)
ok....I re read again.

1st of all, when developer sent payment notice to bank, you will get a cc copy rite? look at the date of the letter. assume bank paid yr instalment on the date of the letter, did it cover the 36 days?

IF it doesn't, it means the bank is trying to overcharge its customers. If I were you, I will march into the bank branch and demand an explanation before bringing it to higher authority.
*
BEANCOUNTER, thanks for your patience. The payment notice is dated 06 June and due on 06 July. If ... the money were drawn down to developer on 01 July, then yes it covers the 36 days.

For your 2nd suggestion, I'm actually not available in Malaysia in weekdays, so its quite difficult for me to walk in to their bank for this issue. Require a lot AL for upcoming months so........ ohmy.gif

Btw, thanks a lot.
zeroskyz
post Aug 13 2018, 02:06 PM

Getting Started
**
Group: Junior Member
Posts: 140

Joined: Mar 2009


QUOTE(blacknic @ Aug 13 2018, 01:00 PM)
zeroskyz, Yup you r right. the due date is on 5th Sept 2018. But why they are calculating the interest until 4th Sept 2018? As if interest only incurred after the period right?

In your explanation, I'm actually paying like "advanced interest"?

Just another way round, what if I'm paying RM50K on 5th Aug to clear all the payoff amount, then there will be no interest incurred from period of 5th Aug to 4th Sep right?

Or RHB is practicing this way and deduct out the additional in next installment amount?
*
If I not mistaken, you mentioned 50K released to developer on 31 Jul 18, right?

So for 31 Jul onwards, you need to pay day to day progressive interest. The due date is 5 September 2018 referring to the interest charge from 31 Jul to 4th September 2018 (36 days interest).

"Just another way round, what if I'm paying RM50K on 5th Aug to clear all the payoff amount, then there will be no interest incurred from period of 5th Aug to 4th Sep right? "
Yes, you may but need to check if RHB allow on this way of offsetting progressive interest during construction period.

"Or RHB is practicing this way and deduct out the additional in next installment amount?"
Your next installment shall be paid on following month, eg: Due date: 5 October 2018, where the amount shall be calculated from 5th Sept 2018 to 4th October 2018 (30 days progressive interest) + Any new amount of payment released to Developr during the period.

Hope this helps.

Thank you.
BEANCOUNTER
post Aug 13 2018, 02:10 PM

10k Club
********
Group: Senior Member
Posts: 12,740

Joined: May 2011
QUOTE(blacknic @ Aug 13 2018, 01:06 PM)
BEANCOUNTER, thanks for your patience. The payment notice is dated 06 June and due on 06 July. If ... the money were drawn down to developer on 01 July, then yes it covers the 36 days.

For your 2nd suggestion, I'm actually not available in Malaysia in weekdays, so its quite difficult for me to  walk in to their bank for this issue. Require a lot AL for upcoming months so........  ohmy.gif

Btw, thanks a lot.
*
RHB KLCC opens on saturday. Weekends up to 7pm. Just a headup.

disclaimer: am no employee of any banks. tongue.gif

blacknic
post Aug 13 2018, 02:30 PM

New Member
*
Group: Newbie
Posts: 9

Joined: Aug 2018


QUOTE(zeroskyz @ Aug 13 2018, 02:06 PM)
If I not mistaken, you mentioned 50K released to developer on 31 Jul 18, right?

So for 31 Jul onwards, you need to pay day to day progressive interest. The due date is 5 September 2018 referring to the interest charge from 31 Jul to 4th September 2018 (36 days interest).

"Just another way round, what if I'm paying RM50K on 5th Aug to clear all the payoff amount, then there will be no interest incurred from period of 5th Aug to 4th Sep right? "
Yes, you may but need to check if RHB allow on this way of offsetting progressive interest during construction period.

"Or RHB is practicing this way and deduct out the additional in next installment amount?"
Your next installment shall be paid on following month, eg: Due date: 5 October 2018, where the amount shall be calculated from 5th Sept 2018 to 4th October 2018 (30 days progressive interest) + Any new amount of payment released to Developr during the period.

Hope this helps.

Thank you.
*
zeroskyz, errr.. I may start to get what you mean. but maybe let me have another question with condition as below: (just forget all previous scenario):

Same amount of RM50K, interest at 4.6%.
Installment due date 5th Sep. And the period is from 5th Aug to 4th Sep (= 31 days).

So by right have to pay RM 50K x 4.6% / 365 * 31 days = RM 195.34

If lets say I paid RM20K on 5th Aug, balance RM30K,
and from 5th Aug to 4th Sep supposed only charge interest based on capital of RM30K right?

Is the installment amount will change accordingly to RM30K x 4.6% / 365 * 31 days = RM117.21?
Or I still have to pay RM195.34 by 5th Sep?




blacknic
post Aug 13 2018, 02:32 PM

New Member
*
Group: Newbie
Posts: 9

Joined: Aug 2018


QUOTE(BEANCOUNTER @ Aug 13 2018, 02:10 PM)
RHB KLCC opens on saturday. Weekends up to 7pm. Just a headup.

disclaimer: am no employee of any banks. tongue.gif
*
thanks a lot! But I'm in JB now. cry.gif
zeroskyz
post Aug 13 2018, 03:31 PM

Getting Started
**
Group: Junior Member
Posts: 140

Joined: Mar 2009


QUOTE(blacknic @ Aug 13 2018, 02:30 PM)
zeroskyz, errr.. I may start to get what you mean. but maybe let me have another question with condition as below: (just forget all previous scenario):

Same amount of RM50K, interest at 4.6%.
Installment due date 5th Sep. And the period is from 5th Aug to 4th Sep (= 31 days).

So by right have to pay RM 50K x 4.6% / 365 * 31 days = RM 195.34

If lets say I paid RM20K on 5th Aug, balance RM30K,
and from 5th Aug to 4th Sep supposed only charge interest based on capital of RM30K right?

Is the installment amount will change accordingly to RM30K x 4.6% / 365 * 31 days = RM117.21?
Or I still have to pay RM195.34 by 5th Sep?
*
Hi blacknic, I'll believed you still need to pay RM195.34 regardless how many amount you pay as there is a term called lock-in period (2-3years) during construction period where you are unable to make early settlement.

I'll just recalled the term lock in period. You may can check back in your loan agreement for this condition.

Thank you.

This post has been edited by zeroskyz: Aug 13 2018, 03:31 PM
blacknic
post Aug 13 2018, 05:16 PM

New Member
*
Group: Newbie
Posts: 9

Joined: Aug 2018


QUOTE(zeroskyz @ Aug 13 2018, 03:31 PM)
Hi blacknic, I'll believed you still need to pay RM195.34 regardless how many amount you pay as there is a term called lock-in period (2-3years) during construction period where you are unable to make early settlement.

I'll just recalled the term lock in period. You may can check back in your loan agreement for this condition.

Thank you.
*
Yea 3 yrs of lock in period. I thought that is to prevent "full settlement" like clear to RM 0. But partial additional pay off amount is possible. I'm not too sure about this, not planning to make any early settlement though.

btw, if according to your explanation then I understand what's happening on my loan account transaction. thanks a lot for your help!

Bump TopicReply to this topicTopic OptionsStart new topic
 

Switch to:
| Lo-Fi Version
0.0759sec    1.17    5 queries    GZIP Disabled
Time is now: 21st August 2018 - 06:07 AM