In (A), what is 'here' ? Is it same as (3) ?

Is it all bank is the same? because i ever hear some bank will classify the advance payment store at flexi loan account as a their *advance payment for next month payment, so its not ready reduct the principle. Is it this rumor right?

you are right from the term.. from my own experience perspective, i have 3 mortgage loan, 2 in HLB and 1 in MBB.. they are same.. im using semi flexi instead of full flexi.. mortgage loan interests are calculate in daily basis as far as i knew if you go to semi flexi & full flexi loan.. it not deduct your principal and it is serve as advance payment which you are right. but your interests are count based on (principal - advance payment) x interests rate..

unless you call to bank and ask them to use advance payment to deduct your principal.. (indirectly you cant withdraw it out anymore after this)..

Yes, when I say 'here', it means to the saving acc.
Which I feel may, it will be the scenario mentioned by ChuanHong below, the excess is considered as advance payment and not deduct principal..

Hi ChuanHong, I think I'm in the same situation as you.
If any extra payment is considered as advance payment, is it better to park all my savings there? Then withdraw when necessary?

for normal working people and the property is own stay.. yes.. i dont see the cons to not putting the extra money in semi flexi loan account.. i attached a screenshot about the actual transaction in my sample.. when u have a lot of advance payment, your monthly principal deduction amount will be increased, of course there is a factor of 30 days, 31 days for each months..

e.g. 03 Apr 2023 been debit 1376.67 interests in my account.. it is due to March have 31 days.. average per day is 44.41 for interests..when go to 03 May 2023, my account debit 1330.25 cause use 44.41 x 30 days in Apr.. which is around 1332.30 or exact number by bank is 1330.25... minor difference is based on when we pay monthly installment amount into account, and it will have minor difference due to your principal - advance payment is lower again..

my advice is pay a little extra is fine like my sample is 1955 for monthyl installment, but i paid 2000 every month.. slowly your advance payment will be accumulated after maybe 5/10 years.. if you have bonus every year, just lump into it.. when you need cash liquidity, just have to go to bank and fill up some form and cash out the money from your advance payment (but limited to cash out by thousands value, e.g. 1k/2k/3k/4k like that, cannot take out 500/1900).. and it incur small charges like RM25/50..



sorry as im not good in explaining all these in professional ways.. but i hope you guys can understnad my broken english..


Attached thumbnail(s)

Just a question, I've semi semi-flexi loan with MBB, would advance payment money be deducted? For example, I put in 10k as advancement payment (one-off payment).

This post has been edited by Gaia34: Oct 11 2023, 06:10 PM

Thanks for your advise ChuanHong.
I just checked my bank.. so apparently my acc is a 'current acc' with card..

Can I ask if your current repayment in manual? or is it auto-transfer from acc-to-acc like my case?
Reason I asked is because I am also thinking to pay extra abit every month, but my current arrangement is the 'current acc' will auto-transfer to mortgage acc.. so I cant really 'set' it to transfer more..

current account? are you having full flexi loan account? only flexi loan tied to individual current account. how long u have the mortgage loan? usually current account will have monthly/yearly fee.. check there is any small fee charge into your current account?!

it is fine to pay extra every month.. it will automatically reducing the interests on your loan.. the benefit of having current account is that you can make additional payment/withdraw money from your current account without having any pre-approval from bank.. but cons is there should have a minimum maintenance charge in monthly/yearly basis..

wont.. it will deem as advance payment.. it wont deduct directly.. loan instalment is automatically taken each month from advance payment as per pre-approved schedule.. e.g. your instalment must paid by every 5th of Month.. make sure you have enough money in account before 5th of month..

generally it should be all same.. except certain bank have a max cap of advance payment to reduce your interests.. e.g. your principal loan is 500k.. if you dump 400k into it as advance payment.. will it use only 100k remaining balance to count your interests?! not really.. some bank have a cap like 50%/70%.. this one you have to check with your banker/in your loan agreement..

This post has been edited by ChuanHong: Oct 11 2023, 09:26 PM

Yes you are right. I am having full flexi loan acc with my bank right now and yes there are a small fee charge for some maintenance/trx.
Ok, then I would just put most of my saving/liquid money into that acc, and it should be reduce the interest right?

Your monthly installments amount will used to pay off principal more than usual. In long run, yes interests reduced and you may pay off your loan earlier than your loan term.

For someone like me that don't know what to invest, I just lump my extra into loan account only as advance payment..

what if i loan 1M with cap 70%
if i just pump in 200k extra (haven't reach the cap amount of 700k)
then the amount that will go into principal will be 200k fully, or 70%*200k=140k?

hmm.. loan principal 1m.. advance payment 200k.. outstanding balance = 800k to multiply/calculate your interests..

lets assume advance payment cap is 70% = 700k of advance payment.. if you put advance payment 800k, 1000 - 700 (cap) isntead of 800k. ultimately = 300k to multiply/calculate your interests..

This post has been edited by ChuanHong: Oct 19 2023, 10:16 PM

Just got the answer today (from agent/runner not from the banker directly just to highlight)
for the package given to me
if cap at 70% repayment
loan 1M
u gt extra 200k and pump in, only 140k will count as principal
60k will be parked somewhere and will only return to u when u clear your loan

This post has been edited by 13af: Oct 19 2023, 10:40 PM

Yeah, banks are business man, not simply let applicant leverage their money buy property without earning interest.

I not 100% sure, but i know some generous bank are actually caps at 90%, and some like your 70% is normal. So if you are using outsource mortagage banker, dont just let the agent deal with it, you can actually liaise with that outsource learn and ask them which bank package is the most suit to your desire. Of course this is when your profile are accepted by all bank then you have more choice.

This post has been edited by Aldo-Kirosu: Oct 22 2023, 08:03 PM

what bank is this?

It's HLB.
Btw they created a current account, not saving acc. Just wanted to correct myself.

I curious for new property usually take how long start paying interest after signed SPA?

When loan was disbursed to developer, then need to start paying.

1. waiting developer presentation to request fund
2. waiting for lawyer to settle everythings included land office stuff
3. conventional loan and islamic loan have different time
4. Different bank have different timing as well

so overall, as fast 3rd month after signed SPA or half year after sign SPA.