I think for now, House loan interest is charged on top of the interest accured during moratorium.

So, if your remaining tenure is still very long, it can come out to be quite a substantial amount if it is not settle earlier.

Won't have interest on interest. Only the interest on the amount owed will be charged.

This is what i understand too. No compounding interest

It should be x% x RM123 per month x 6 months

Then the amount added to the total outstanding amount of your loan, thereafter divided by the total number of months left

This post has been edited by raptar_eric: Jul 7 2021, 03:28 PM

Should be x% X principal owed X 6 months, then this amount (say RM800 X 6) will become your principal and added into your original sum.

During this 6 months no interest will be charged on this RM4800.

There is interest accrued bro for 6 months, just non compounding

so the interest that are not charged will be of that 800 pm?
example, if the interest is 3.5%pa
first month (July) 800 x 3.5/12 = 2.33
next month (Aug) 1600, 4.66
next month (Sept) 2400, abt 7
and so on,......
thus saving on interest will be about <RM50??

but if and when this 4800 were to be added in the principal to be pay back for the next 20 yrs,...there will be interest + compounding of this 4800 for the next 20 yrs?

am i correct to assume it is so?

Yea, from what I understand and based on the bank example calculation, the interest accured will be added to the principle, and the new principle interest which is calculated daily will includes the interest accured during moratorium (which has become your principle). That's why I said it is interest charged on interest.

Interest accrued yes, the interest is the RM800... Let's say you owe the bank 300k and your monthly repayment is 1300. Rm800 will be interest and rm500 will be the principal. During this 6 months, only the interest will be accrued (RM800 x6). After moratorium end, you now owe the bank RM4800 + 300k


Yes no compounding interest during this 6 months, estimate to save around 50-100 ringgit only. After moratorium ends will compound as usual.

Thanks for clarifying...

then i guess, even though there is NOT serious need to opt in,...should opt in UNLESS one has a very solid income stream
for the money 800pm cash flow not used could be a surplus bonus in case of sudden slight income misfortune....
when the pandemic is over,.....and when the financial outlook is better,....just do extra principal repayment then...

The Finance Minister and BNM mentioned there will not be interest charged on interest. For the current bank offering anyone can shed some light if it is still inline with this?

https://www.bnm.gov.my/-/six-mth-mora-begins-20210707

its stated there only "during period of assistance". after 6 months no more assistance period mar

thanks, but that question was raised on the 2nd day of MCO 1.0

Actually it is very hard to calculate down to that level as the compounded interest is only about rm50 depending on your monthly installment.

We have no choice but to trust our banks on this

Haha.. alright then.

Yea, I guess the interest calculation after the moratorium is another matter d.

What you mean by this bro? So having full flexi loan is fine with moratorium?

Public bank is bullshitting now…..why is my 6 months moratorium interest to be charged IS BLOODY HIGHER THAN MY MONTHLY INSTALMENT x 6 MONTHS?

Moratorium 6 months = 6.8k interest when my monthly instalment is only 675 x 6?

Tenure extended by 6 months, okay la, so principal is still being paid at the end of the day, but charging interest MORE THAN MY MONTHLY INSTALMENT? WTF?


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Let me ask you a question. If you have RM4k today and you put it inside EPF, how much will you have in 30 years time?

If you take the moratorium and pay it off after 6 months then you will only need to pay minimal interest. But if you don't pay it off and extend until 30 years, then of course the interest will grow.

Brother….do u even understand what is the issue here? 🤣

My personal scenario :

HLB : For housing loan amount RM520k, monthly instalment around RM2.25k. Applied last year moratorium and after that paying extra around <RM100 after 6 months moratorium ended for the rest of housing loan. Now monthly instalment around RM2.3k+.

Let say i take again this moratorium, then my housing loan will be monthly RM2.4k+ for the rest of housing loan tenure (30years)

For the new home buyer, 70-80% of instalment amount we paid is only the interest and balance 20% principle. That is why the interest charged is higher if we take moratorium. But taking consideration of current situation, cash is king.

Not going to take moratorium since i rented out my house. Dont wanna pay more to bank.

MBB : For my HP, i will apply moratorium though. Given that it will be the same like previous moratorium, only extend 6 months HP tenure. No extra interest charged. However, my due is on 12 July, wonder if i can skip this month or need to wait approval from MBB. Time's clocking.

The interest is if you only pay back after the end of the tenure.

If you pay after moratorium is over, the interest won't be so high.