Welcome Guest ( Log In | Register )

Outline · [ Standard ] · Linear+

> High loan interest rate, need advise

views
     
TSshinimi
post Oct 21 2019, 06:28 PM, updated 5y ago

Getting Started
**
Junior Member
103 posts

Joined: May 2009
From: Alor Setar


Hi guys, need advise on this matter.

I recently bought a subsale in my home town and my loan is with CIMB @ 4.90% p.a. and the loan amount is 180k.
I had zero knowledge at that time and did not do enough research. I was naive and believe that the rate is because the loan amount is low.

The loan is apply through an agent which is one of my relative's colleague. Is it possible for them to negotiate with banker for a higher rate so that they get higher commission or is that factor mainly from my credit rating?
I would like to know moving forward maybe after the lock in period, what can I do to lower that rate? Is refinancing an option?

Appreciate if anyone can input on this. Thanks.
vckc
post Oct 21 2019, 06:51 PM

Casual
***
Junior Member
418 posts

Joined: Jan 2019
QUOTE(shinimi @ Oct 21 2019, 06:28 PM)
Hi guys, need advise on this matter.

I recently bought a subsale in my home town and my loan is with CIMB @ 4.90% p.a. and the loan amount is 180k.
I had zero knowledge at that time and did not do enough research. I was naive and believe that the rate is because the loan amount is low.

The loan is apply through an agent which is one of my relative's colleague. Is it possible for them to negotiate with banker for a higher rate so that they get higher commission or is that factor mainly from my credit rating?
I would like to know moving forward maybe after the lock in period, what can I do to lower that rate? Is refinancing an option?

Appreciate if anyone can input on this. Thanks.
*
Factors affecting your interest rate.
1) Poor Credit Scoring
2) High DSR
3) Low Loan Amount

Put it all together, I think 4.9% is reasonable for a 180k loan. Bankers don't make more commission by charging you a high interest.

Refinancing is hard to do because they base your DSR off 10 years commitment instead of 35 and you may or may not have a lock in period.

You also have to incur additional costs such as facilities agreement and loan stamp duty.

What can you do then?
Focus on paying down your debt and putting more money into the Flexi account.

Boomwick
post Oct 21 2019, 06:52 PM

On my way
****
Junior Member
558 posts

Joined: Mar 2019
Loan amount less than 200k very hard get good rate..

Maybe ur rating also not so good like no record
TSshinimi
post Oct 21 2019, 07:13 PM

Getting Started
**
Junior Member
103 posts

Joined: May 2009
From: Alor Setar


Thanks for the replies.

Before I apply the loan, I do not have other commitments other than PTPTN with an outstanding around 3.6k. I have settle it after the initial assessment from the bank.

Seems like majority of the factors is due to my credit rating I guess.
nexona88
post Oct 21 2019, 08:04 PM

The Royal Club Member
*********
All Stars
41,806 posts

Joined: Sep 2014
From: REality

The rate seems good..

And your PTPTN outstanding do have some effects 😒
sjteh
post Oct 21 2019, 08:28 PM

Getting Started
**
Junior Member
194 posts

Joined: May 2010
Hi ts, you can try hsbc n mbb as believe their rate is bout 4.15-4.3% currently....
aaron1717
post Oct 21 2019, 08:34 PM

Chui Shui in Property Manyak Best!
********
All Stars
10,169 posts

Joined: Apr 2012
QUOTE(sjteh @ Oct 21 2019, 08:28 PM)
Hi ts, you can try hsbc n mbb as believe their rate is bout 4.15-4.3% currently....
*
he dont have other credit record other than ptptn which may also not pay on time... usually 1 credit card is required to improve credit rating also... plus his loan amount so low... tambah CIMB not really competitive in their mortgage rate... so 4.9% seems quite okay...
TSshinimi
post Oct 21 2019, 09:18 PM

Getting Started
**
Junior Member
103 posts

Joined: May 2009
From: Alor Setar


QUOTE(aaron1717 @ Oct 21 2019, 08:34 PM)
he dont have other credit record other than ptptn which may also not pay on time... usually 1 credit card is required to improve credit rating also... plus his loan amount so low... tambah CIMB not really competitive in their mortgage rate... so 4.9% seems quite okay...
*
Forgot to mention, I do have credit card and paid in full every month.
Only bad one is the PTPTN which is another long story as of why I have 3.6k outstanding.

I can only blame myself I guess. What I could have done better is probably trying to apply other bank loan myself I guess.
TSshinimi
post Oct 21 2019, 09:19 PM

Getting Started
**
Junior Member
103 posts

Joined: May 2009
From: Alor Setar


QUOTE(sjteh @ Oct 21 2019, 08:28 PM)
Hi ts, you can try hsbc n mbb as believe their rate is bout 4.15-4.3% currently....
*
Yea I heard that these few banks have better rate from a few person too, will try if I need another loan later. Thanks man.
sjteh
post Oct 21 2019, 09:24 PM

Getting Started
**
Junior Member
194 posts

Joined: May 2010
QUOTE(aaron1717 @ Oct 21 2019, 08:34 PM)
he dont have other credit record other than ptptn which may also not pay on time... usually 1 credit card is required to improve credit rating also... plus his loan amount so low... tambah CIMB not really competitive in their mortgage rate... so 4.9% seems quite okay...
*
Loan amount is ok cos just applied loan from HSBC n amount is less than 200k recently.
nexona88
post Oct 22 2019, 08:27 AM

The Royal Club Member
*********
All Stars
41,806 posts

Joined: Sep 2014
From: REality

QUOTE(sjteh @ Oct 21 2019, 08:28 PM)
Hi ts, you can try hsbc n mbb as believe their rate is bout 4.15-4.3% currently....
*
QUOTE(sjteh @ Oct 21 2019, 09:24 PM)
Loan amount is ok cos just applied loan from HSBC n amount is less than 200k recently.
*
Oh really..
Good to know then..

I assume the process is the same like others banks right...
Don't needed extra documentation or additional salary proof..
sjteh
post Oct 22 2019, 08:56 AM

Getting Started
**
Junior Member
194 posts

Joined: May 2010
QUOTE(nexona88 @ Oct 22 2019, 08:27 AM)
Oh really..
Good to know then..

I assume the process is the same like others banks right...
Don't needed extra documentation or additional salary proof..
*
Hi, yea. It is the same.
nexona88
post Oct 22 2019, 10:37 AM

The Royal Club Member
*********
All Stars
41,806 posts

Joined: Sep 2014
From: REality

QUOTE(sjteh @ Oct 22 2019, 08:56 AM)
Hi, yea. It is the same.
*
Okay thanks 🙏

 

Change to:
| Lo-Fi Version
0.0145sec    0.22    5 queries    GZIP Disabled
Time is now: 29th March 2024 - 05:58 AM