Before you go tekan the bank, do ensure the settlement date of your WMP that you bought falls in February and not on March.

This post has been edited by GrumpyNooby: Apr 3 2020, 07:54 AM

Well, placed in 24 Feb, plenty of time for them to process.
My RM is now writing an email to product manager on my behalf.

Hi sifu, I have a semi flexi Maybank Islamic housing loan with an interest rate of 3.75%, since there is this moratorium right now, should I just stop the monthly instalment for 6 months and put my money in SCB PrivilegeSaver to maximise the saving? After 6 months, one shot dump back the money back to my housing loan.

on paper it is a good idea as long you did not cap the 100k in PrivilegeSavers. I also noticed most banks refused to take the payment and opt to accumulate interest instead (though no compounding interest).

I would suggest checking with Maybank - if you did bank in the installment, will it reduce the loan interest or will it just hold the payment as "advanced payment" which in most cases do not reduce the interest.

do note you will still be charged interest on your housing loan balance for 6 months.

I heard the interest will still compound on your principal but not on top of your loan interest.
Don't know how true is that.

Amount of principal is frozen from the start of moratorium.
Interest will be accrued based on the frozen amount.
You have accumulated interest during the period.

it is true. bank not doing charity yo.

That is so obvious and so many people are discussing on the other thread on how to take advantage of the moratorium.
Come on, guys! There's no free lunch form the banks.

there is only one way to make money out of this, ie make sure ur investment is consistently higher than mortgage interest in the next 30 years or so.

That's true.
For example, if your total monthly repayment is close to RM 20k and you're not capped to RM 100k for this PSA with current subscription to the highest tier at 6% pa.
Even you're at 4% tier, you won't gain much.

This post has been edited by GrumpyNooby: Apr 5 2020, 10:01 AM

also must remember mortgage interest will not forever be this low. anything can happen in the next 30 years.

I guess ure referring to the asnb thread?

I guess the monthly interest accrued based on the frozen principal amount is lower than the ‘possible’ return in forms of dividend, hence, why those people are taking advantage of the moratorium.

Moratorium thread.
I don't know there's heavy discussion in that too since I don't have those products in my hand.

ultimately, the loan belongs to each individual. if they made the decision after fully understanding it then that's good. otherwise, if made decision with misconception, then it's their loss for not fully understanding the moratorium. many give advice and opinion, but always remember the one with the loan is you, not them.

Ya, I know that. But 4% PrivilegeSaver is > 3.75% interest. I know the saving might be little, but heh free money right. 😆

Using RP example of principal amount of RM 500k with loan interest of 4% and monthly repayment is RM 2390.52.

At end of September, your accrued interest is RM 10,000.02.

Let's say you're to divert the 6-month repayment into PSA, the total amount is RM 14343.12.
The total interest earned at 4% is RM 167.92 for the period from 1/4/2020 to 30/9/2020.

April 2020	2390.52	7.86
May 2020	2390.52	16.24
June 2020	2390.52	23.58
July 2020	2390.52	32.48
Aug 2020	2390.52	40.61
Sep 2020	2390.52	47.16
	TOTAL	167.93

Worth it?

And where is the free money comes from?
Your housing loan is still accruing interest (not no interest at all).

This post has been edited by GrumpyNooby: Apr 5 2020, 12:40 PM

if u are very sure that PSA or similar investment/account can give u 4% per annum for 30 years and your mortgage loan interest will remain 3.75% for the next 30 years. then yes.

extend this to 30 years

This only valid if you do no need the money on 1/10/2020 and beyond.
On 1/10/2020, I need to service the housing loan and the diverted amount needs to be withdrawn out to put back to the housing loan.

oic, if u intend to put the money back into the housing loan by the end of 6 months moratorium then it's a more complicated calculation which i'm not good at. i know what u mean. but have to consider the interest saved if you continue paying your loan for the 6 months (since mortgage is reducing principal) thought i don't think it's significant.

This post has been edited by !@#$%^: Apr 5 2020, 01:30 PM