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.

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

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

Yw. Just sharing, with no compulsion to subscribe to any of my services

Eh? really? Will check my inbox now and get to you.

So sorry

Easiest way is to check from the latest loan details/statement. Id like to analyze yours and share my findings, but I understand it is a very personal matter. These statements are my "raw materials" that I go through and share with my circles. Unfortunately I haven't got any hands on MBB's as most of my circles have migrated to other banks.

I have their 2018 loan statements, but our concerns are most likely the interests chargeable during the BR reduction month. I am sure I can see through the numbers if I can get my hands on a loan details/statement. It has to cover the months of March to May 2019 and show the outstanding loan balances throughout the period. I would also need to know the BR + [spread] figures. That's about it.

Something like this (without the numbers removed) would be very useful. Any volunteers?


Figure 1. Redacted figures of a loan statement from MBB ASB-financing account

Ah, for visibility purposes of my sharing and discussions inthe ASB thread in the Finance subforum, I would share my posts in this thread in /k/ - for the visibility which is important. In any case, due to the more serious nature of this thread, and the fact that I can delete people's comments, I get to control the narrative . In short, this thread is important due to the :

1. Reach
2. Control

Yeah, sure. best rate is about 4.75% p.a., for as long as 35 years if your are 30 years old or younger



This post has been edited by wild_card_my: Jun 4 2019, 12:05 PM


Attached File(s)
 ASB_Financing_Monthly_Payment_Table.pdf ( 50.61k ) Number of downloads: 44

sure, if you consider it that way, you would have to do the same with other forms of investments as well. You have to take the maturity value and deduct all the capital outlay. This should be applied to other investment vehicles with or without a loan (As the capital outlay still happens).

For example, cash investment in ASB vs ASB financing, both would have their own capital outlay.

Plenty of discussions on this. It depends whose opinions you would like to listen to

Yeap, not much different to buying properties as investments.

The capital is protected and guaranteed. At any time the price per unit is RM1. The biggest loss would be in the event of no-distributions declared while having to pay the interest on the loan for the past 1 year, of which you can proceed to sell of the units.

It is not silly, it is part of the New Economic Policy. I am sorry you are not able to take part of it, but it is silier if the Bumiputras do not take advantage of it to empower themselves.

Mortgage max tenure is as long as this, but no one is complaining?

Regardless, it is a moot point coming from you. You can cancel the loan anytime, takes between 3 days to 3 months depending on the bank. And the best thing is that the capital is guaranteed to remain RM1 = 1unit, so you are very unlikely to cancel the loan at a loss

Yes you could. Maximum units are 200k before the increment of the softcap (by earning the distributions). At RM150k, not problems at all.

Kene call the bank over and over again. Call the officer that handled it, as them what is the progress

And I am telling you that there are plenty of opinions on this. OK lah, senang cakap: "sorry, can't help you with this"

That is fine, if you know what you are doing. It is possible to make a loss investing in any investment vehicles. With ASB, all they do is normalize the returns, when they increase their NAV by 30% year-on-year, they give 8% return, when they lose 30%, they still give only 7-8% return.

But with this stability and capital protection, the bank would be interested to finance the purchase


No such thing. If your net interest rate is too high (5% and up), you may be interested in 4.75% offer

Next time, ask the banker to do calculations, and bring it over here. Id like to see how these people subvert the truths

Yeap, there are so many opinions/rules regarding the zakat, thanks for sharing one of them. I do not feel qualified enough to answer any of the question regarding zakat.

Rezeki datang dari Allah, bukan dari manusia, especially not you. I have learned in my ten years in sales that when someone claims their "prior intentions" as what you just did, they never really had anyway.

As for the question you asked earlier, when I do not know the answer to something, I would not simply give you one. If you had done some cursory search, you would find there are so many opinions regarding the zakat calculation on distribution/capital; from all sorts of pejabat agama across the land. My answer was just that - that there are plenty of opinions on this, and you should seek further knowledge than from just this thread.

Finally, I prefer dealing with those whom I could discuss at the same level, eye-to eye, where we would respect one another. Based on your reply earlier, you sounded rude - you would last out at others that are unable to answer your questions; I do not think you would make good client anyway. I hope we do not cross paths again. Assalamualaikum.

Kan. I dah cakap, I tak tahu and can't be sharing what I do not know. I cannot give fatwa on it, because that is wrong. I told him there are plenty of opinions on this, "help yourself". And then kene perli, tak apa lah. Rezeki bukan dari orang macam tu.

Reserves and no one knows the number of outstanding units. The NAV is about RM160B as of now, without the information on the number of outstanding unit, we do not know the actual NAV/unit

As it is, the units are being guaranteed by PNB, that at anytime, it will always be RM1/unit.

ASB was created due to the New-Economic-Policy, it is just "another" unit trust fund, with a twist - as mentioned above, the RM1/unit price. Created to encourage Bumiputera participation in the markets.

The only way to do so is to cancel the whole ASB-financing account. The good news is that the PRTT would have a "cash value" which you will get back; the bad news is that your current loan-outstanding with MBB may still be higher than your certificate value (unless you have taken this loan for about 5 years). If this is the case, you may need to pay MBB first in cash before the loan can be cancelled and for your to get the cash-value from the PRTT

My general advice is to avoid taking full-tenure insurance for ASB-financing unless you are COMPLETELY sure you need it, and that you won't be changing/refinancing your ASB-f in the future.

Oh that explains it. Bila apply lepas BR adjustments, you wont get the benefit following the BR adjustment.

To further look into this: each bank would quote their rates as this:



Each bank would have its own Base Rate which will most likely change over the course of your loan tenure. The spread, however will NOT change throughout the loan tenure, the only way to change the [spread] would be to:

1. request for a change (subject to approval)
2. or simply refinance your loan to a different bank.

For example, CIMB's BR before adjustment was 4.25%. At the time, the promotion rate for ASB-f from CIMB was BR + 0.75%, with the [spread] being +0.75%. So the effective rate for this person is 5%.

Kalau BR brubah, your rate would remain quoted as BR + 0.75%, but since BR CIMB got reduced by 0.25% from 4.25% to 4.00%, your rate would now be 4.75%. This is good.

However, as you mentioned, you applied after the BR reduction. Product owners in the banks are responsible to bring profit to the banks - that is their KPI. So when the HQ reduced the BR, the product owners would increase the [spread] for new applicants. It is very likely that your rate is quoted as BR + 1%, with the new BR for CIMB being 4%, your effective rate is 5% p.a.

Cuba check letter offer yang diorang email tu, look for the quoted rate. I expect it to be BR +1% with BR being 4% for CIMB

P/s right now rate 4.75% p.a is available in the form of BR + 0.87%, with the BR being 3.88%. It is too soon to "refinance" your ASB-financing after just taking it recently, but if you were promised 4.75% by the banker/agent, but now getting 5%, I would seek some explanations from them. The 4.75% promise should not have been made, especially since you made your applications rather late, a few weeks after BR adjustments. The banker/agent should have known by that time that the application would not enjoy BR + 0.75% (the old offer) vs the new and worse offer of BR + 1%. Not to mention some agents/bankers still cant wrap their head around effective interest rate (EIR) calculations

This is why I was rushing for some people to get their applications in order. Prior to the OPR and BR adjustments in May, some of them were getting 4.85%, due to the downward adjustments, their effective rates are now 4.60% p.a.

ASNB is a unit trust management company (UTMC), just like Public Mutual, CIMB Principal, etc. These companies are under the purview of the SC, the funds (ASB, ASB2, etc) are being managed by ASNB but the actual money is being held by the trustees. The trustees have the responsibilities to intervene any unscrupulous transfer activities especially ones that go against the deed, mandate and objectives of the fund. Strictly speaking, it is not just like any other company - just want to clear that up

The funds are not capital guaranteed nor protected by PIDM, but if you look at these two factors:

1. fixed price per unit (RM1/unit)
2. Unlimited repurchase of all your units at any time, page 8

The points above suggest that the subscribers are free to withdraw his money at any time (Sunday to Friday, working hours). The minimum distribution is 0%, the funds would not able to deduct your units, and as long as the price/unit remains the same, your investment would hold its value. In essence, the company itself is guaranteeing your money - but they cannot go out and about to say so.

It goes without saying that if their investments go south, and the fund NAV is lower than the units outstanding, things would be looking bad - especially if they cannot liquidate fast enough for the unit repurchase. That has not happened as far as I know. In addition, they have been consistently paying distributions to their subscribers, I reckon the actual NAV/unit is higher than the price of RM1/unit. These are but speculations though, as there is no way to be certain unless you are an insider. SC has full access to these funds accounts too, and so far so good.

This post has been edited by wild_card_my: Jul 3 2019, 10:10 PM

It is not exclusively for Bumiputras. In general (based on my understanding with Bumiputra-discounts for properties), people in category II below are not Bumiputras. Yet they are allowed to open and invest in these ASB/ASB2 accounts that people mistakenly thought are reserved exclusively to Bumiputras.



This post has been edited by wild_card_my: Jul 3 2019, 10:32 PM