Apr 1 2020, 01:00 PM
QUOTE(diversity @ Mar 31 2020, 11:23 PM)
yup, so RHB is doing the latter which is to increase tenor.
extracted based on their website:
What would happen to my loan/financing after the moratorium period?
Will I need to pay more interest/profit after the moratorium period is over?
Is there an increase in monthly payments, or longer tenure?
The monthly instalment/payment amount will remain unchanged after the deferment period. However, the monthly instalment/payment will be adjusted should there be any revision of the Bank’s reference rates (i.e. Base Rate/Base Lending Rate/Base Financing Rate) for variable rate loan/financing.
You will continue paying the same monthly instalment/payment1 with an additional tenure of 6 months2.
You may also contact us after the moratorium period if you want to arrange for other suitable payment plans that you can afford such as increased instalment/payment or further tenure extension2.
Applicable to Home Financing, Property Financing and ASB Financing:
1The monthly instalment/payments will first be allocated to pay off the deferred interest/profit. Payment will only be subsequently allocated to reduce the principal balance once all outstanding interest/profit has been paid. 2Extension of tenure is subject to the maximum loan/financing tenure of 35 years for home financing.
That's why from the above you don't really lose out much even if you opt in for the moratorium apart from movements in the OPR. The only argument people are saying now is that if you're not short of cash, why not pay now while the BLR is so low.
But apart from the BLR savings which to me is marginal, you don't really pay ADDITIONAL interest per say. Of course after the deferment your 7th and 8th month payments will predominantly used to settle interest, so your principal amount won't touch much.
Given the situation, I honestly doubt the OPR is going to go up in the coming months or even years.extracted based on their website:
What would happen to my loan/financing after the moratorium period?
Will I need to pay more interest/profit after the moratorium period is over?
Is there an increase in monthly payments, or longer tenure?
The monthly instalment/payment amount will remain unchanged after the deferment period. However, the monthly instalment/payment will be adjusted should there be any revision of the Bank’s reference rates (i.e. Base Rate/Base Lending Rate/Base Financing Rate) for variable rate loan/financing.
You will continue paying the same monthly instalment/payment1 with an additional tenure of 6 months2.
You may also contact us after the moratorium period if you want to arrange for other suitable payment plans that you can afford such as increased instalment/payment or further tenure extension2.
Applicable to Home Financing, Property Financing and ASB Financing:
1The monthly instalment/payments will first be allocated to pay off the deferred interest/profit. Payment will only be subsequently allocated to reduce the principal balance once all outstanding interest/profit has been paid. 2Extension of tenure is subject to the maximum loan/financing tenure of 35 years for home financing.
That's why from the above you don't really lose out much even if you opt in for the moratorium apart from movements in the OPR. The only argument people are saying now is that if you're not short of cash, why not pay now while the BLR is so low.
But apart from the BLR savings which to me is marginal, you don't really pay ADDITIONAL interest per say. Of course after the deferment your 7th and 8th month payments will predominantly used to settle interest, so your principal amount won't touch much.
My question is can we opt for the moratorium, but use the amount to just pay down the principal which will lower the overall interest required to be paid. Or would that negate the terms and cancels the moratorium.
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