Wah so nice.. Borrow to invest...

Where do I sign up?

And some argue saying bank earn more using his capital. And he's better off slowly accumulate that 200k.

I mean, dude. Does it matter if bank profit or not? What matters is you profit.

This is what i categorize as dengki as well.

Thanks but hmmm..... nevermind.

Anyway, the financing rate nowadays is 5.25%? Once you secure the loan, the rate is locked for 35 years right so you'll be immune to changes in BR?

This post has been edited by moosset: Dec 15 2019, 12:48 PM

No free money in this world lah ........!!!!!

anyway, given the ASB & ASB2 & BR rates, it's not very attractive. If the BR rates are lower, or the gap between ASB & ASB2 rates are closer, then it's very attractive.

but of course near zero risk, so why not?

This post has been edited by moosset: Dec 15 2019, 12:46 PM

What? No, the lowest rate is now 4.85% p.a. at a maximum tenure of 40-years or until age of 65. If you are 25 or younger, you can get 40-year tenure. RM200,000 financing = RM945/m



I have also attached the PDF at the bottom

That is a given. But we work with what we have. This is much better than properties though:

a. fixed price per unit, your collateral remains the same price unlike properties which can fluctuate
b. properties have a lot of hidden costs
c. properties require a lot of management - tenant, payment, damages, etc


Attached File(s)
 ASB_Financing_Monthly_Repayment_Table_3.2.1109.pdf ( 110.34k ) Number of downloads: 14

can i make money from this?

Yeah, definitely. But there are a few assumption that you need to make, as per any investment return calculation

1. Financing rate is currently at 4.85% p.a., with a 40-year tenure

2. Last year ASB return was 7% p.a.

Since this is a financing (amortization) and an investment (compounding interest), you can't calculate the total returns by simply finding the difference between the two figures. You need to run both accounts (loan and investment) amd compare the results. Check out the examples below.

As per any calculation, we need to make some assumptions. We are assuming that the interest and installment remain throughout the 40-year tenure at 4.85% p.a. and RM945/m; as well as a yearly return of 6.5% p.a., with compounding interest (meaning distribution is allowed to be reinvested into the fund)

a. Loan account, total payment of RM0.453M


b. ASB account, total return of RM2.483M

You can sign up at the banks, or approach ASBF brokers around such as myself.

Totally up to you, no difference on the financing package except they may force you to sign up for Takaful since that is part of your KPI

But first you must be eligibke to open ASB accounts

I put 50K in my ASB few years ago and topup another 10K last year. This year I withdrawn almost 30K from there. I am thinking to do ASB financing, what is your opinion on saving vs financing in ASB?

Ic.. Anyone also can right? Bring ic cukup?

Sifu, I signed up for 35 years. Can ask for 40 now?

i prefer saving over asb financing..nowadays you can auto deduct from your bank account to asb..the dividend you get is 100% yours, no need to split to pay your asb loan

Agreed, but the dividend will not be that much as we are slowly saving from month to month. ASB financing would give a higher dividend amount, but the it will be split to pay the finance interest. So at last, after calculation I don't know which will be more beneficial let say if we save/pay the same amount every month.

1k of ASB saving monthly
1k of ASB financing payment monthly

thsi one has been calculated so many times
assuming certain loan interest rate and dividen stay the same
its no brainer that ASB loan is more "profitable"
but depend on inidividual i guess
if u planning to buy house, maybe not advisable to get ASB loan before
as it might increase u risk in the eyes of the bank and hence higher interest rate

http://skyline2m.blogspot.com/2016/09/pinj...an-sendiri.html

This post has been edited by hazremi: Dec 15 2019, 07:05 PM

Conclusion : It’s a free money right.

yes, the NRIC is fine to open the ASB/ASNB accounts, but to apply for a financing, you need more documents than that. I can help with that if you would like to, otherwise, you can always take a trip to the bank. They will require basic financial documents, no different from any other financing


Depends, I don't remember your age because I did not link your name to your lowyat profile. I do remember we met for signing at a mamak near Endah Parade right? Sri Petaling.

Okay, here is the table to get 40-years tenure, it depends on your age. How old are you? if you are below 30 years old, it may be worth refinancing to get the longer tenure, but it is your call, I cannot force you to do one (status quo) or another (refinancing):




Due to the the fact that there is always a margin between the financing rate (4.85%) and the ASB distribution rate (7% last year), it is always much more beneficial to invest through financing. As someone below said, it is "free money".

Consider these calculations, assumption a return of 6.5%, and even if they fluctuate, both investments would be experienced the same amount of fluctuations since they are both invested in the same ASB account:

1) Cash investment, for RM945/m, 40-years, maturity value: RM2.061M



2) ASB Financing investment, for RM945/m, 40-years, maturity value: RM2.483M




That is correct. In a a way it is like any other investments. I will compare it to properties:

1. In properties:

a. You get rental income
b. You get capital appreciation (or if you are unlucky, depreciation)
c. You get a loan, and need to serve the instalments

2. In ASB-Financing:

a. You get distribution income (yearly basis)
b. Your capital is fixed though, the RM200,000 units that yo buy remain that way forever
c. You get a loan, and need to serve the installments

Investment in properties and investment in ASB through financing are similar in that they are both using the asset as collateral to get lower financing/interest rates. With these low rates, there is a margin between the financing rate vs the return rate. We earn a profit by profiting through this margin.

The risk-levels are vastly different though, since with properties:

a. Capital can appreciate or depreciate
b. Fixed asset, takes time to dispose
c. Fixed asset, costs a lot of money to dispose including agent fees and applicable taxes (RPGT), charge to discharge
d. Require general (fire) insurance
e. Tenant default
f. Damages to the property

The list goes on. So for those who are eligible for ASB and thus ASB Financing, this is a no brainer.

This post has been edited by wild_card_my: Dec 16 2019, 03:35 AM

Which bank can 40 years?cimb can?

Cannot, CIMB max is 35-years. There is a specific method that I need to use to get you the 40-years. Also it depends on your age, how old are you?

What is the current value of rm2.483 mil assuming inflation of 3%?