That is a good call. Bank deposit with access to ATM or even just cash is more liquid than ASB. But consider staggered emergency funds, with some, like 2 months salary in savings, 4 months in ASB

Credit card can and should function as part of your emergency funds too, keep the balance low, and the limit high. You can even have an emergency card that you keep in the car or house, only for emergencies.

Depends, are you a Muslim? No kidding, Chinese Muslims can apply for both the units as well as financing.

Chinese Muslim yes, Chinese as it is, no.

There are a few criterias, including Portuguese descent, Thai descent, etc. people that have been around for quite... a while

Hey I didn't make the rules.

They just changed it this year. RM60 is nothing, but I am concerned about missing the one month. I will not recommend one way or another, but if you are willing to refinance, I can help with it

1. I would really recommend those who are one 5% and above. Keep in mind that every 0.1% is RM100 per RM100k financing. If you are borrowing RM200,000, and your rate is 5%, you would be saving RM500 a year (actually less, since your loan balance would be reduced over the year that you are paying your installments).

2On the other hand, the loss of one month's distribution is 5.5% of RM200,000 (the certificate size, regardless of your actual balance because we do not move your other funds) is RM917. If you keep your old financing for longer than 2 years you are better off refinancing because the new financing may be kept for longer than the next 2 years

I would not recommend it, despite this being against my own interests

But if you have friends of 5% and above (many do not realize it), they are welcome to engage me

To cancel the loan account will take days, if not weeks to months. It depends on the banker. So this is not liquid at all

But the cash-investments (including the distribution earned) in the ASB is liquid, you can walk into to any ASB-agent banks (MBB, RHB, CIMB, HLBB, etc) before 4pm every working day and the cash can be immediately deposited into the savings account you have with them.

You can do this in the Pos Office too, although the limit is RM5000, if they have the cash in hand that is

Or you can go to ASNB branches

correct, but it is not as liquid as actual cash and money in your savings account ok? to withdraw ASB units into cash generally you need to do it during working hours

Easy. Just take 200k and minus the current loan balance (figure from M2U)

Plus whatever distribution she has received today

If she took insurances then likely she would have to pay MBB to surrender the cert and close the account

Actually if the customer doesn't take ANY takaful/insurances, even a cancellation after just a month's time require no extra payment from the customer. This is because in the very first month of installment, the bank has already been repaid their loan balance

In the example below, the loan amount is for RM200,000, 30 years tenure, and 5% financing rate, and installment of RM1074/m.

a) You will notice that in the first month, the loan balance is RM199,759. If the customer cancels right then, he will in fact be repaid RM240 by the bank
b) The same applies on the 6th month, the loan balance is RM198,543. If the customer cancels right then, he will be repaid RM1,457

Granted, this does not take into account the day of the disbursement. This is important in real-life calculation due to the fact the interests are charged on a daily basis. You can't control the date of the disbursement, for some people, they may need to pay more interests than others and this will screw up the calculation. The the concept is sound, each installment pays of the loan



I cannot stress this enough, if possible DO NOT take any insurances/takaful from the bank when it comes to ASBF and mortgages. You will soon realize when you need to refinance or make a settlement of the loan that these insurances cannot be carried over to your next financing, and that the added cost of the premium would get in the way of your profitability. Keep in mind that every takaful/insurance has a cost attached to it, if you have enough coverage that you bought on your own, you are better off without the banks' insurances.

If you do not have any insurances, you are are better off taking a one on your own. Speak to your takaful/insurances representatives

This post has been edited by wild_card_my: Jan 1 2020, 10:17 PM

Updated rates:

1. 20k-60k the rate is 4.80% p.a.
2. 80k-200 the rate is 4.75% p.a.

Maximum tenure is 40 years, or until the age of 65 years-old

No insurance required to get these rates. Table attached at the bottom, you are free to engage any bankers or brokers out there. Just sharing the info



This post has been edited by wild_card_my: Jan 2 2020, 12:55 AM


Attached File(s)
 ASB_Financing_Monthly_Repayment_Table_3.2.1109.pdf ( 109.97k ) Number of downloads: 36

Yes and no.

1. Your loan interest is paid for as long as you have a loan balance with your bank. This is calculated on a daily rest.

2. Your distribution is calculated based on the monthly minimum balance.

3. When you apply for a cancellation with your current bank, the bank will take a few days, weeks, or even months for the full cancellation to happen. It will happen in 2 stages:

a) The bank will apply for a redemption of the certificate with ASNB, ASNB will pay the bank in cash (digitally) based on the value of the certificate (i.e. for a 200,000-unit certificate, the bank will receive RM200,000 from ASNB)

At this point, the monthly-minimum-balance for that month would be reduced by that much. As such, your distribution calculation for this month will be based on this lowered value

b) The bank will keep whatever is due to them, based on your loan balance. For example, it you still owe the bank RM192k, the bank will deduct this amount from the RM200,000 they have received. You will get RM8,000 as capital return.

Please keep up with the terms used.

4. The process of (A) through (B) are not simultaneous. It is possible that the bank would take some time before utilizing the cash received from ASNB to reduce your loan balance with them. As mentioned above, your loan balance would be calculated based on a daily rest. In addition, installments must be paid as long as your loan account is not completely closed with the bank, however any amount that you have over-paid will be be returned to you - you just have to write them a letter to get your money back

Let's illustrate the situation:

i. You applied for the cancellation from Maybank today, on 6th January 2020. Your current loan balance with Maybank is RM192,000

ii. The units were redeemed on the 20th January 2020. Your ASB monthly-minimum-balance for January is ZERO

iii. Maybank took 5 days to zerorize your loan account with them, this happens on the 25th of January. Your interest rate is 5.5%. For the month of January, you would be paying is RM657.53



iv. Maybank would still ask you to pay your installment on the 1st of February, but there will be an overpayment, as your are only due to pay the interest accrued calculated above. You should ask for your money to be returned. This is normal during a refinancing process, not limited to just ASBF, but mortgages as well.

By the way although this is not high-level banking, it requires some experience to calculate the daily-rest interest-payable based the dates of fund/balance movements, and to compare it with the actual payments - I can read your statements tell you exactly where the money goes. This is because I am not a salesperson nor a product-pusher, I am a consultant. If you go with the bankers, they will push you takaful/insurances instead of educating you.

For a refinancing, here is what I can do for the clients:

a. Apply for a new ASBF from a different bank (for example, HLBB)
b. Once your new ASBF is approved, apply for the cancellation of your ASBF with your current bank (for example, MBB)
c. MBB will take some time before the certificates are redeemed - a few days, weeks, or even months
d. Once the units are redeemed, HLBB can start disbursing your funds into your ASB account. This way you would minimize the amount of 'loss' of distribution during the refinancing process
e. For all my clients, the loss is limited to just 1-month worth of distribution, because I am able to time cancellation (and redemption of certificate) and disbursement (of new funds from the new bank)

For this client, even though the unit redemption happened on the 30th of May, I was able to disburse the new funds by the 31st of May so she still gets to keep the distribution for June:



A good number of people are also refinancing their current ASBF due horrible rates they are currently paying with their current banks:



This post has been edited by wild_card_my: Jan 6 2020, 01:40 AM

RHBi. I can help with the application or you can go ahead and do so yourself. But there is a difference in service-levels between consultants and bank salesperson

Nope, but I can do it till age of 65. This limit is per BNM rules as far as I understand

Pelaburan Dalam ASN, ASB Dan Seumpamanya - JAKIM

"Setelah mendengar taklimat dan penjelasan serta meneliti keterangan, hujah-hujah dan pandangan yang dikemukakan, Muzakarah bersetuju memutuskan bahawa bagi menjaga kepentingan dan maslahah umat Islam serta mengelakkan kemudharatan yang lebih besar, hukum melabur dalam skim Amanah Saham Nasional (ASN) dan Skim Amanah Saham Bumiputera (ASB) serta dividen atau bonus yang diterima adalah harus"

Anyone who argues otherwise can do so in the form of Taqwa. Which means that he does so in his own accord, within his very small circles (family and self). Without being part of a Muzarakah, which would have experts in every fields related to the issue, he has no rights, expertise, nor authorities to issue his own Fatwa - doing so would divide the Muslim communities as a whole, especially if some unqualified ustaz-pondok with no resources nor knowledge in matters at hand (finance) gives his own opinion that would decide the path of Malaysian Muslim finances as a whole: this issue is above his pay grade

tl;dr: JAKIM says it is harus, neither haram nor halal. Anyone who argues otherwise can practice Taqwa, but he has no right to issue any Fatwa related to it. Just keep your opinion to yourself

This post has been edited by wild_card_my: Jan 12 2020, 06:14 PM

your interest will still accrue over these 6 months, depending on your bank,

a. you can load the accrued interest into capital and pay it throughout the tenure,
b. or you can pay the accrued interest in lump sum at the end of the moratorium
c. or you can pay the accrued interest in lump sum at the end of the loan tenure

yes and not

it will appear in your CCRIS

but the distribution you earned from ASB can be used as part of your income

Yes, both distributions from units bough using cash and financing can be used as part of your income. most banks will apply 80% on this (because it is considered as variable income), RHB will apply 50%

Update: For those who wants to refinance or apply a new, a good rate would be 3.85% without takaful and 3.80 with minimal takaful.

40 years max tenure, up till age 65

Name of the bank is usually trade secret haha. talk to me

As for the tenure, longest tenure is best, whatever savings you get from the lower installment can be further reinvested as cash. The idea of ASBF is to actually not pay off the financing balance, because the certificate size is always bigger than the balance at anytime (certificate size remain constant, while your balance is reduced over time)

As a broker I can do a house call for you, but it is your choice to go to the banks or engage my services.

Best to take it without takaful, unless the takaful contribution is super minimal that the lower rates give you a better deal despite having to pay for the contribution

Just putting it out there, some banks can do 40 years till age of 70 years old now. Here is one of the better rates:

ASBF Promotion

+ Max tenure: 40-years
+ Max age: 70-years old
+ Effective rate: 3.85%
+ No lock-in period

For example, RM200,000 ASBF installment: RM818/m