To make you understand better about ASBF you need to know what is the advantage first.

ASB financing is a method you use the bank money (OPM) to optimize your return.

For example if u are making asb saving;

540 monthly
for 10 years you only will get a total of RM92,890. Nett profit is only RM28,090.

while

if u are making 100k asbf with the same monthly RM540

Terminate at year 10 and you will get RM115,251. Nett profit is RM50,451.

The different is about RM22,361 in 10 years.


There are many method that can be use in asb financing suit with your objective and financial capability.

About the question you ask;

1) There are no longer lock in period at most bank. Thats mean you can terminate anytime you want without to pay any penalty. However if you apply your loan with takaful its recommended not to terminate less than 3 years otherwise you might need to pay the shortfall.

2) If you can up a little bit the monthly from 250 to 270 you can apply 50k loan with 30 years tenure.

3) At cimb if your salary is below than 3000 than your dsr must no be more than 60% and if your salary 3000 and above your dsr must not be more than 85%. What is dsr? You will ask this question. The debt service coverage ratio, also known as "debt coverage ratio", is the ratio of cash available for debt servicing to interest, principal and lease payments


4) CIMB interest rate now is 5.05%.

5) Yes, you can choose to make for short term or long term. You will get more with asb financing than asb saving.

Hope this may help you to make your decision. If you want to ask further can private message me. I'm always happy to share my knowledge about asb financing.

-haziq-

Yes true. Its call rolling dividend method. You use the dividend u get every year to pay for the next year installment. You repeat the process till you want to terminate or end tenure.

This method only possible if the given dividend every year is more than your whole year installment. Let say your whole year installment is 13200 and the dividend you get is 14k than it will be more than enough + you get an extra money for that year. However if the dividend is less than your whole year installment you will need to topup using your own money. For example your dividen is 13000 and your installment is 13200, than you need to topup 200.

The only cons if the dividend you get is less than your 1 year installment because u need to top up. However at the end you still profit so dun worry.

Many asbf player using this method because it only use little capital and even if need to topup its not burdening.

This post has been edited by haziqnet: Sep 20 2018, 04:19 PM