You can increase your financing. Say you take RM50k today.. next year you want to increase it by another RM100k. You would end up with 2 loans, and RM150k in financing. However, there is a "collateral cap" of RM200k. This capping DOES NOT increase. At any time, you can only borrow a maximum of RM200k per ASB account. Generally there are 2 accounts that offer financing: ASB1 and ASB2

As for your second question, all you have to do is to use a loan calculator to find out the outstanding balance after the "few years". In this example below, the person borrowed RM200k. After 5 years (60 months), he owes the bank RM188k. When he cancels the account, he would be given back RM12k in cash. Keep in min mind that in the past 5 years he would:

1. have received dividend for each month the RM200k is held under his name
2. have paid the installment for the RM200k loan




Yes and no. Some banks would require minimal insurance to secure the best rates, others would not mind one way or another, but typically do not have the best rates in the market. For example, 4.85% with minimal RM300 insurance vs 5% with or without insurance

Some of you guys have been asking for this table, the banks havent got around to making one, so here it is. Based on 4.85% and 4.90%, all the way to 35 years tenure. Also attached are the same files in PDF

Rate: 4.85% p.a.


Rate: 4.90% p.a.



Attached File(s)
 ASB_Financing_Monthly_Payment_4.85_.pdf ( 50.13k ) Number of downloads: 39
 ASB_Financing_Monthly_Payment_4.90_.pdf ( 50.14k ) Number of downloads: 26

This just in, the best rate in the market is 4.75%, for a tenure of 35 years maximum or until the age of 65.

You can also do a joint-applicant, where the father/mother lends their income for the child's ASB-financing application, of which the tenure of the financing will follow the child (thus longer tenure)

if the father/mother lends their income then father/mother cannot apply asb financing anymore right (if limit 200k)?

how about asb2 financing ? any news yet?

Can. For example, father is 60 years old. He has income but age-disadvantage.

He uses his name and income to joint-apply with his 2 children, aged 20 and 22 who have no income. Each child will get 200k financing, at the maximim tenure of 35 years.

ASB2 financing still closed for the time being

This post has been edited by wild_card_my: May 21 2019, 10:31 AM

if i already maxed out my 200k financing, can i still apply for my child? any minimum age for the child? thank you

yes, it is still possible. Because in that arrangement, you would be the joint-applicant, not main applicant.

1. Your child is the main applicant. The one who is the certificate holder. As long as the "baki boleh cagar" for this person is still RM200,000, this person can still borrow this many units for investments. The tenure will be based on the main applicant's age; if he/she is 30 and younger, the tenure can be extended to the maximum of 35 years

2. You would be the joint-applicant. You would be lending your income into the application, but the certificate will NOT be under your name. There are no restrictions to having more ASB-financing under your name as long as your debt-service-ratio allows it

The minimum age for the child is understandably 18 years old, which is the minimum age in Malaysia to enter a contract (a loan is a contract). Additionally, if your wife is not working, you could lend your name/income to her for a similar arrangement as per above

crystal clear. thank you very much for the explanation. guess i have to wait few years more. Do you have anyone with low income but max out 200k asbf by paying lump sum for one year? i heard things like that.

Yeah quite a number of people do it. It is a lump-sum rolling-technique that some people employ to maximize the loan. They would pay the first 12 months (or less) of the monthly installments using cash that they have in-hand, then each year they would use the distribution received to pay the installments upfront.

The great thing about it is that the rolling-technique does not have to be permanent. In the future, when the income situation has improved, you can always revert to paying the installments on a monthly basis as opposed using part of your distributions to supplement the payments.

In addition, you would be able to increase the softcap of your ASB accounts early on by maximizing the distributions received - as we know, the softcap is increased through the accumulated distribution received

noted. thank you very much for the explainanation

Hi there. I need some opinions on my ASB loan. I took the full financing of 200k (with 4.90% rate) on Oct 2017 from Sotong Bank for 30 years. Have been paying RM1061.83 every month which includes insurance for the 1st 10 years(if not mistaken). Currently i've been paying from the money i've saved in ASB before decided to take the financing and will only be able to pay for up to the end of this year. Initial planning was to use current year distribution to pay for next year and so forth until end of 5th year then will terminate.

But after some thinking, i am thinking of terminating and re-apply for 100k financing for 30++ years. I can put aside max rm500 from my salary for the installment. I'm currently 30 years old.

What does anybody think about this?

1. First of all you would have to consider the outstanding balance of your loan vs the RM200k certificate value. I do not know what was the ARTA (ASB-reducing-term-assurance) premium/contribution that was financed into the loan, but it should not be too significant. There should be capital returned to you once you close the account

2. Next, in general a financing of the full 200k is always better than 100k. You can either maintain the status quo (no refinance, just stay with Sotong) or you can refinance to a different bank, of which you need to consider:

a. tenure (max tenure is 35 years for you now at your age)
b. rate, best rate for new customers is around 4.75% p.a.
c. installment - it should be lower than what you are paying now, at this rate, RM200k financing = RM980/m for 35 years

3. Following point (2), the reason you may want to keep the 200k financing is to accelerate the growth of the softcap. You can do so by adopting a hybrid technique of monthly payment of RM500, and using part of the distribution to pay the remaining balance, which is RM480 a month. In this case, you would only need to take only RM480 x 12 = RM5,760 from the yearly distributions to supplement your instalments.

You make very good points. I never thought about the hybrid technique.

So, if i were to refinance for 200k with the longest tenure, should i terminate first then apply for new loan or can i apply then terminate?

Also, which bank is offering @ 4.75%? Kindly PM me.

Thank you.

For some banks, it is NOT required for you to terminate the current financing before applying from the new bank. This is good, because there are NOT GUARANTEES that you would get your new "refinancing" approved.

So the way we do it is to apply for a new financing first (the refinancing) from a new bank, once (if) approved, you can cancel the current ASB-financing from Sotong.

Assumption: 7% distribution rate every year

1. You got the right principle, but lets use the right terminology here: Your softcap has increased by 14k, your hardcap is still 200k

2. If you withdraw the RM14k distribution that you have just received, your softcap will continue to increase by next year. Why? Because you would still be receiving the distribution based on the RM200k capital that has been invested through financing. In this case, your softcap would increase by RM14k, making a total softcap of RM28k (RM14k + RM14k)

3. Now, if you had left the RM14k distribution alone, your next year's distribution would be RM214k x 7% = RM14,980; making a total a total softcap of RM28,980 (RM14k + RM14.980)

4. RM28,000 vs RM28,980 in the first year. Due to how compounding works, this difference will increase over the years. If possible, try not to withdraw any of the distributions

This is why it is very important to start your ASB-financing early. I have recently got clients born in the late 90s with 1999 being the youngest. She applied using her dad's income (she has no income) and will continue the payments once she has started working. This is beneficial as it helps her:

a. start her investments early and accumulate her wealth
b. increase her ASB softcap starting from the age of 20

I wonder when will I get a client aged 18.

This is easily the quickest ASB-financing cancellation process that Ive seen. Took her only 3 days, from 27th May when the application for cancellation was made, and 30th May for the actual cancellation of certificates on MyASNB



This post has been edited by wild_card_my: Jun 3 2019, 10:49 AM

PM for more info. Meet after raya?

Meet today or tomorrow pun boleh. I have appointment in Shah Alam tonight. I sambut raya for 1 day only

What a good tered. Thanks ts

ts u didnt reply my last pm..i wonder why