QUOTE(vergas @ Aug 2 2007, 05:07 PM)
I'm very surprise to see that you don't use reducing balance since housing loan in malaysia use reducing balance. kenji1903 link http://www.fiscal-wise.com.my/FiscalWiseWe...nRepayment.aspx
would do the calculations and the answer is RM2832.80 per month. Unfortunately you need to use IE and not firefox to view it properly. I have checked using financial calculator.
Alternatively you can use excel
It will give the same answer
where it is =PMT(rate /12 since its monthly payment, number of installment (30 years times 12 months), loan amount, default, default)
btw: BLR is not set by Bank Negara (like suggested by agent7) , its set by individual bank. Bank Negara set the OPR (Overnight Policy Rate).
Thanks for the formula.
From the above example, the monthly payment will be 2832.80.
But as you have mentioned that in Malaysia, the housing loan is a reducing balance type, does it mean I will be paying more during my first few years of loan tenure or the payment of 2832.80 will be fixed throughout the 30yrs loan tenure?
If it is fixed at 2832.80 per month throughout the tenure, I can only say that the first few years of the loan tenure will be subjected to paying more of interests than the principal. Is that understanding correct? Pls help to clarify.
Next, if the interest is counted in daily rest instead of monthly rest, the formula above will no longer be true right?
This way of calculating will work?
where it is =PMT(rate /365 days, number of installment (30 years times 365 days), loan amount, default, default)*days in a month
obviously the leap year and the number of days within a month will be different.
Thanks.This post has been edited by Superman7: Jul 10 2010, 11:36 PM