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

kinda too hard to understand...tot can hav a layman term one

Hi guys, seek your opinion and advice.

I got offer from Public bank and RHB so far trying to decide between this two.

1.) PBB Semi flexi 1st yr 4.35% subsequently 4.45% (semi flexi can reduce principle by any amount and min mrta only 6k)

2.) RHB full flexi 4.45% (* downside is need to reduce principle need to pay into loan account multiples of rm1000 and min mrta is higher at 9.7k)

what is your advice and which would you choose? Is it worth to pay higher for the mrta and the multiples of 1k to offset principle for full flexi?

thanks in advance !

i tot RHB only offer MLTA?

No, they offer MRTA

is it? my banker told me only MLTA... feel like being cheat...

Oh, what was your loan amount and how much for the MLTA?

The options for RHB are GRTA/MRTA/ODLA/CLTA: according to LO

around 580k

MRTA and MLTA no need to buy, just buy insurance that can cover ur housing loan...but a bit mahal...when it is matured, u get the money and coverage ..just buy for MRTA & MLTA for 5-10 years, the bank will offered cheap rates when it is about to expire, instead ofone lumpsum 35 years

u mean buy from insurance agent or bank? First time house buyer.
Below is the offer given by bank. Can advise?


RHB Loan Approved

Total Loan amount: RM439,773.00
Loan margin: 90%
Loan tenure: 35yrs
Interest rate: 4.55%
Monthly installment: RM2,095

* loan amount including MLTA, cover 350k for 33 years

For the MLTA. It’s included in the loan, no upfront payment. It’s rm21,273 for the coverage, if divided into 33 years, per month it’s only RM53. Monthly payment RM53, to cover 350k. Usually outside won’t be able to find this rate

This post has been edited by Ganandran: Apr 24 2019, 01:28 PM

Don’t think that is MLTA, most probably be MRTA. It will be on reducing scale, do check up with Banker the coverage period and amount. Do buy as close as possible to the 35 years tenure if you don’t plan to fork out MLTA monthly premium.

buy from agents...dont put MLTA or MRTA, rugi bayar interest.. cover 350k only?if got extra money, buy insurance coverage bigger than ur house vàlue..the bank officer just wanna scared u when u didnt buy MRTA/MLTA from them...

Can you advise which insurance company can offer coverage that cheaper and have good coverage. For RHB MLTA, they use third party insurance company too. not insured by themselves.

Prudential...u have to ask banyak2 company...

i got this reply from RHB banker

Hi

Just an update, even you are paying extra to principle prepayment, the principle is reduced and interest is reduced.

but you are still required to pay the same amount every month, because there is not recalculation.

just called to bank officer to confirm.

izzit a new rules or wat?
i remember last year, once i 4got to pay the regular installment.
i called & ask if there's any penalty.
the CS told me that they bank edi auto deduct from my "advanced payments".
i've nvr make any advanced regular payment, but i did put som in principle.

i also not sure it is new rule or what,
but the full flexi loan wasnt really that flexi.

there is no online statement,
so you wouldnt know how much you owe, or how much they charged based on current principle.
even want to see the loan statement, also need go to local office and apply to check.
so many things are hindered from us.

That's the thing. I noticed it's a very not reliable customer support in a way that they cannot tell us anything because "every calculation is done by backend system".

yup, they are making everything hard for us and not cheap for us also.


"
Should you wish to request for your Housing Loan statement, it is subjected to fee of RM5 per page for additional loan statement.

Should you wish to request the statement, you may forward us the duly signed request letter stating the fee is agreeable and all of borrower signatures are required on the change of address request letter if the account is under a joint account.

We appreciate your understanding, as proper verifications are required in order not to compromise on customer's security and to ensure that customer's confidential information is not divulged to third parties and this could not be done through e-mail.
"

Yours is what bank and plan?

rhb bank, full flexi.

How does RHB Full flexi work? Can reduce principal more than 70%?

Bro, if you forgot to pay the regular installment, they will auto deduct from your current acc, please double check.
And, any payment made to "principle" is not withdraw-able anymore.

i'm pretty sure it dint deduct from my current account, cuz i dint use the account besides for loan.
so i'll always leave just RM10 in it, & transfer money in when i wanna do payment.

How to do the redrawal from the full flexi loan using online banking?

This post has been edited by darkhunter16: Oct 26 2019, 12:12 AM

if i not mistaken, need to go to bank to withdraw.

Also, under RHB, every year I see an additional 1K++ being added into the loan, which shows up as FEES ASSESSMENT.

Anyone knows what's this about? This RHB sends you no sh*t whatsoever. It's like a self service sandwich joint this bank.

This post has been edited by toos99: Nov 11 2019, 12:43 AM

Wish to confirm that this is correct. Had a long, arduous journey to get this info previously. The monthly installment changes only when there is a major shift ie BLR rates. Else, even if you throw in big amount of cash, EPF, etc, monthly installments remain as is. The only variable that changes here is the duration of the loan.

Although, you could request to have it revised but I don’t know the procedure.

After performing principal repayment, if still paying the same amount, does it mean we pay more to the principal instead of interest? I. E. Further reducing the principal

Any branch can also do this? Any charge?

really??,
can you share your statement with your personal info blur out?

i think need to be the bank that handle your loan.

It must be. As interest is calculated based on principle owed.

..

This post has been edited by toos99: Nov 4 2019, 06:46 PM

...!!!

This post has been edited by toos99: Feb 17 2021, 02:28 AM

Isn't this minus not addition?

From what I understand fee assessment is the adjustment they make due to changes in interest rate. Call RHB and ask?

When is it charged?

..

This post has been edited by toos99: Apr 3 2022, 03:58 AM

..

This post has been edited by toos99: Apr 3 2022, 03:58 AM

ur house is still under con or completed?
what is ur rhb loan type name?

,.

This post has been edited by toos99: Apr 3 2022, 03:58 AM

After paying monthly principle prepayment for RHB flexi loan, when the interest reduction will take into effect?

Calculated daily, monthly or annually Or only when they revise the interest rates?

I supposed it is fire insurance which is required to purchase every year.
If you do not get fire insurance from other companies, the bank itself will buy on-behalf and charge under your Loan.
I noticed this too first 2 yrs, and since then i bought from other insurance company, I need to issue the cover sheet to proof I purchase one and email to their customer service.
Since then I do not see any reduction anymore.
So if you have additional money in the loan, i believe it will minus off, otherwise it will increase your principal (i think).

Anyhow, I'm also confuse with the option "Advance Payment vs Prepayment Principal" for Semi Flexi.
I see some say it reduces the principals but why 2 options?
Advance Payment - reduces principal and can redraw money out through counter/write-in?
Prepayment Principal- reduces principal but cannot redraw money at all?

Anyone knows?


This post has been edited by coolwave81: Apr 15 2020, 03:13 AM

One is your usual monthly loan mortgage payment, the other is to pay down specifically your principal.

One is a must pay every month, another is optional.

Hi. How can I withdraw the excessed amount which I have paid during construction period? The loan is fully disbursed, I can't find any way to redraw the amount from the site.

Any idea if we withdraw EPF to help prepay loan, when we need the money can we withdraw it back from the RHB housing loan?

yes can

Recently i signed RHB full flexi housing loan and the officer told me that i need to go to rhb bank open a saving account with rhb within 2 week

Is there any better convenient way to open saving acc via online ? Not sure why officer never open saving acc together after i signed on the full flexi loan

prepay during cons period, as i know cant withdraw as banker said, it will use to off set interest, only release full amount, any prepay only can withdraw under withdraw bucket

paid to loan account, then it will show at loan redrawal, u can transfer out to rhb saving

if i prepay during cons period. eg. 100k.
After full disbursement, then i can start withdrawing portion of this 100k?

During Con period it cant, it does nothing and it will just use all to settle ur interest. you better pump in 100k after ur loan full release, becoz it can use to offset interest and you can withdraw it out. anything u see inside withdrwal bucket on your account only can taken out. i been try during con period put extra, it wont reflect, it will just hold in system and deduct the interest charge during con period

This post has been edited by waitiong: Dec 9 2021, 12:00 PM

Hi, previously I have transferred some money into my RHB loan account via RHB Now to reduce interest.
But now I can't seem to withdraw it through RHB Now. Can anyone help me?

Apps function very limited, maybe cant do it.
Able to do it via website
go Menu> Fund transfer > Own Account > Loand Redrawal

Hi, I am in the similar situation- Islamic FullFlexy house Loan with RHB. My first payment due this May 5. Previously they have asked me to open RHB savings for the purpose of Loan disbursement. And I believe they will auto deduct my monthly payment from this accounts. I have some cash now and would like to use it to take advantage of interest (reduction?). My question is do I just transfer the cash into the savings account and that is it? or do I need to inform the bank of my intention to use it as principle prepayment? I am afraid if I bank in the cash (lets say 50K), the bank might think i would like to pay 50k for the next monthly payment. Thanks in advance guys.

FAQs on Prepayment Charges On Housing Loan
https://www.abm.org.my/faqs-loans-and-lending



Attached thumbnail(s)

Maybank, RHB Banking Group to increase BR, BLR by 25bps | The Edge Markets

Maybank said it will revise upwards its rate effective May 13, while RHB will be doing so on May 18, according to their respective statements.

Maybank noted its BR will be raised from 1.75% per annum (p.a.) to 2% p.a. while its BLR will be revised from 5.4% p.a to 5.65% p.a.

Similarly, Maybank's Islamic BR and base financing rate (BFR) will be increased by 25bps from 1.75% p.a. to 2% p.a. and from 5.4% p.a. to 5.65% p.a. respectively.

...

Meanwhile, RHB Bank Bhd, RHB Islamic Bank Bhd and RHB Investment Bank Bhd will increase BR from 2.5% p.a. to 2.75% p.a., and will also revise the BLR and BFR from 5.45% to 5.7% per annum, respectively.


CIMB increases rates by 25bps effective May 18 | The Edge Markets

KUALA LUMPUR (May 12): CIMB Bank Bhd and CIMB Islamic Bank Bhd will effect a corresponding 25-basis-point (bps) increase in their base rate and fixed deposit/fixed return income account-i board rates effective May 18.

This post has been edited by cybpsych: May 12 2022, 12:24 PM

How to find it in new RHB website?

only in old website, new website not supported yet

anyone can advise if previously i have put in amount into principal prepayment but would like to know how much balance in it

Can view from loan redrawal or from the mobile app

Available on the new website as well, for the old website, you need click withdrawal to view the available amount.

hi, have anyone received the revision of monthly instalment letter from RHB (1/11/2022)?

I plan is full-flexi and understood from letter and the RHB counter person, RHB going to change the plan? Now the instalment amount only based on the Loan balance exclude the redrawal amount, if u going to reduce the monthly instalment amount you need to pay out your redrawal amount otherwise its only auto deduct the monthly amount from ur redrawal amount.
means redrawal amount cannot reduce the monthly instalment amount already (no interest), only can pay out or let it auto deduct.

correct me if im wrong.

Yes I received the revision statement in Nov effective Dec which was a drastic increase of about RM1k per month almost equal to my original instalment when I signed up for the loan. Not sure how they calculated the amount.

Based on original loan amount. No more based on remaining balance after minus the extra cash

Ahh damn. In that case the only benefit in pumping cash is to save interest charges monthly only.

Yes, but with monthly payment back to original amount, we can't top up close to ending balance also. For example, i have 50% of loan amount already pumped in. With the new payment amount, i will finish the loan in next 7 years.

So long story short.. before the loan amount is fully disbursed by the bank (during construction period), the only way to reduce the loan interest is by pumping money into the loan account (redrawal bucket). Any funds that were pumped into the redrawal bucket of loan account cannot be withdraw before the loan is fully disbursed.

anyone know the new rhb online banking website have the loan redrawal function edi? Since the RHBnow gonna obsolete soon...

this function is yet port over to new website and they are closing old one

yep, thats why asking.....later all funds stuck inside loan cannot take out via new website then GG

One more month until closing if the website announcement is accurate. Until now still no redrawal function in the new RHB website.

auto full flexi become semi flexi

i did the same mistake
maybe should add a no redrawal notification if pumping into non-fully disburse loan..

This post has been edited by 47100: Feb 28 2023, 03:43 PM

Does anyone know how to set recurring payment for the new RHB website?

It's so shitty.

i still not able to withdraw access payment paid to principal prepayment and no update of the amount. how u all solve it?

why you never bother to call and ask the bank directly?

you sure paid to principal? usually advance/exess payment, you need to inform bank to deduct it from principal, else it'd be just float there as monthly installment.