Hi All


Currently, I am taking RHB full flexi housing loan,
my house loan account is linked to my RHB saving account.

To pay from my RHB saving account, it has two payment methods,
"principle prepayment" and "regular installment"

From main office banker descriptions,
"principle prepayment" is reducing the principle, even you put money in "principle prepayment"
you are still required to pay "regular installment" every month.


From my agent descriptions, I am taking full flexi house loan, I should use "principle prepayment" to pay the installment.
short summary - "principle prepayment" can be used as "regular installment", and
if I pay to "principle prepayment" before the due date, I can enjoy the interest reduction.

from example, my loan is 500k, monthly installment is 3k,
if i paid 10 days earlier before due date, i am charged with 497k (500k - 3k) interest only for that 10 days,
when is the due date for payment, the 3k will be removed from "principle prepayment" and used as "regular installment".


I am confused with two statements now ,
hope someone who is taking rhb bank house loan can help on this.

Actually i am quite confuse also.
My monthly repayment is 2350
than i put in 12k (forget the amount d).
For the whole year, i still pay 2350, than suddeblly become 2300 d, not sure why. also, the money u pay is by rm1k. so if yiu pay rm500, it does not count, only multiple of 1k will count.

Never try to withdraw, so not sure what happen now

In a very simple term, if you put 50k in your saving account, you will save the interest for that 50k. You then can continue pay the regular installment monthly into the same account.

If you decided to leave the 50k there and let the bank deduct monthly, the interest free amount will be reduced on monthly basis based on the remaining amount in the savings account.

Let's say, you have full 500k cash and transfer to your saving account. The bank will deduct the same amount monthly but the whole amount will be used to deduct the principal. It means, you might finish the loan in 13+ years instead of 30/35 years.

Why full flexi loan is better for those have extra cash to spare is, the amount will help to reduce the interest and at the same time, you can still withdraw during emergency. Downside, you might need to pay additional RM10 (not sure about different banks) as fees.

Some might just take semi flexi and park the cash somewhere which give better return.

But RHB is the only bank offering full flexi loan without any RM 10 monthly maintenance fee

But it is capped??

Nowadays many flexi loan are capped at 70%.. meaning u will be charged interest on 30% loan no matter what

Nope, as I know PBB, CIMB got capping on interests saving. RHB is quite flexible, only thing is you need to move your capital from CASA to loan account in order to reduce your interests (via online banking)

Hi GUYS

thank for helping.
I ask this question again in RHB facebook,
and one banker contacted me. The statement from banker is tallied with my house agent descriptions.

For full flexi house loan, I should use "principle prepayment" to pay the installment.
short summary - "principle prepayment" can be used as "regular installment", and
if I pay to "principle prepayment" before the due date, I can enjoy the interest reduction.

once the due date is meet, the installment amount will be deducted from "principle prepayment" and used as "regular installment"

thank all.

So does that mean, before you place excess money into the principle you pay monthly rm2000 (example), now you are paying less than rm200 monthly now?

yes, you are right.

if my monthly installment is 2k. And i pay 1k at principle prepayment before the due date.
when the due date come, I only have to pay another 1k to regular installment.

What if you paid rm 50k into your principal? After due date will you be paying the same installment amount as previously?

sorry for late reply, i seldom on lowyat forum.
i cannot be sure, but i guess it will be less as my loan is less now.

You are correct. Additional money paid during construction period not withdrawable. From the online banking, the excess amount will be used to reduce the principal, so it's better to call the bank and check how much excess amount you have.

Yes, if the excess amount in CASA, than it won't help you to reduce the interest. But you can withdraw anytime you like. This is my understanding from SA.
So, I just pay the actual monthly installment and not excess. Will wait for loan to be fully disburse and than only transfer to that account.

Actually no point paying extra during construction period. It will not help to reduce the principal amount (this is what i was told). Yes, better check with the bank directly.

Hi all,

Highjack this topic abit.. I saw a RHB term and condition have an early settlement fee calculation. [(a-b)/100]*c*(d/365)

A=current board interest
B=discounted interest
C=loan amount
D=days of contract with bank

How does this calculation work. I'm confusing. Hope any experience guy give some guidance.

One point Below the highlighted blue
Thanks.

CL

if i choose to pay 1k principal prepayment option. my regular installment does not decrease by 1k.
pls advice.

any idea how and where can i redraw the excess payment made via rhb online banking?

Hi,

if I not mistaken, if you still paying 1k for your regular installment, I think the bank will auto deduct 1k from your principle prepayment.

for taking the money out through online, i cant remember the details, i think you need to go to bank to setup something first.

ok long story short

loan of 500k, with month installment let say 2.5k

if i have excess money of let say 50k, would it be better to park in flexi loan or fd?

any sifu can advise

this topic has been discussed many times

https://forum.lowyat.net/index.php?showtopic=4642958
https://forum.lowyat.net/index.php?showtopic=4603917
https://forum.lowyat.net/index.php?showtopic=4460266
https://forum.lowyat.net/index.php?showtopic=4229620