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> Bank loan expert come in, House loan

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I'm V-Kool
post Mar 12 2019, 08:08 PM

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QUOTE(deodorant @ Mar 12 2019, 07:39 PM)
I don't understand. We are talking about you here, right? Not "most people" or "in general." If you have extra money and want to pay off the loan quicker then just pay lo, why need to go through so much trouble to refinance?
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LHDN problem biggrin.gif biggrin.gif
kucingrimau
post Mar 13 2019, 08:19 AM

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QUOTE(flyingspurs @ Feb 12 2019, 10:43 AM)
Hi There, i m an ex-banker, let me guide you the proper way, you have a few option:
1) Re-structure the loan, you can call your bank / walk in to any branch, request for a loan restructuring form, pick the loan tenure option, write your request, it will took 2 week for bank to process and will update u via phone/ mail / email, depends on your choice of communication, usually the servicing branch / home branch of your loan will contact u on this or you can check with the bank before next installment.
2) Without altering your loan package, continue to pay Pre-payment, NOT Advance payment. Prepayment will offset your principal and you CANNOT withdraw back the money you pay, your usual installment will remain same but you can opt to pay the extra into Prepayment, please indicate to your bank, usually Over The Counter, or in your online banking (if your bank having this feature), your extra payment is prepayment and usually its in the round up of thousand, ie 10K, 12K etc. not odd figure of 10,018 etc.
3) Paying extra ie installment amount + extra amount without telling the bank will auto define by bank that your extra will park under Advance Payment, which DID NOT reduce your principal amount, but reduce the interest based on principal balance - extra payment x interest. Advance payment allow you to withdraw later if u need that cash with a processing fee. MBB charge RM 25 if not mistaken.

*Do note that both prepayment & advance payment did reduce your interest, however, some bank will only start reducing interest if your advance payment is more than X month of your installment.

4) Refinancing. This will move u from bank A to bank B with a fresh loan package according to whatever tenure u like / approved based on your eligibility. However, this will involved additional cost of legal fee & stamp duty & valuation report fee. Not recommended unless your current package is much higher interest compare to current market offering.

I hope the above give u some guideline.

*All 4 option above in the end will shorten your loan tenure.

and i m not agent / banker now i dont do any loan / referring.
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Quality post. Learned alot. Tq
masami
post Mar 15 2019, 09:20 AM

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How do you pay your loan? Normally it is through standing instruction. Just change the amount and your problem is solved without having to go through the hassle of refinancing etc. And you still have the option of changing it back the the original amount should anything happen in the unforseeable future. (Touch wood)

But make sure all the extra payment goes straight to the principal.

I did mine like this. But of course you can still restructure for peace of mind maybe
TSDocile
post Mar 15 2019, 09:27 AM

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From: Sunway City



QUOTE(masami @ Mar 15 2019, 09:20 AM)
How do you pay your loan?  Normally it is through standing instruction. Just change the amount and your problem is solved without having to go through the hassle of refinancing etc. And you still have the option of changing it back the the original amount should anything happen in the unforseeable future. (Touch wood)

But make sure all the extra payment goes straight to the principal.

I did mine like this. But of course you can still restructure for peace of mind maybe
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I normally use online banking.
If i want to pay principle, do i have to goto the bank?
activexxx
post Mar 16 2019, 08:46 PM

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QUOTE(masami @ Mar 15 2019, 09:20 AM)
How do you pay your loan?  Normally it is through standing instruction. Just change the amount and your problem is solved without having to go through the hassle of refinancing etc. And you still have the option of changing it back the the original amount should anything happen in the unforseeable future. (Touch wood)

But make sure all the extra payment goes straight to the principal.

I did mine like this. But of course you can still restructure for peace of mind maybe
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May I know what do you mean by making sure all extra payment goes straight to the principal?
Does the extra payment goes to other secondary account or what?
foxxy
post Mar 16 2019, 09:55 PM

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QUOTE(Docile @ Mar 15 2019, 10:27 AM)
I normally use online banking.
If i want to pay principle, do i have to goto the bank?
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May I know which bank are you using?

For public bank, there’ll be a code indicated whenever you make payment to your loan account.
For example, 668 - payment to principal
999 - interest
614 - interest payment

Etc etc.

For my loan, let say today is 1 January and my outstanding payment is Rm1000. If i pay Rm1000 + Rm1000 for the current month and the next month payment, any additional money that i put in between 1Jan to 31Jan after the Rm2000 payment will automatically be used to offset the loan principal.

This post has been edited by foxxy: Mar 16 2019, 09:59 PM
tornado dot com
post Mar 18 2019, 02:25 PM

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TS, if your loan is semi-flexi or full flexi, u can just dump more money inside anytime. subject to the terms and condiitons of your loan.

However, if you want to force the loan monthly repayment to be of different value, just restructure the entire loan.

 

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