Hi, I'm planning to co-own a property with my partner. If I pay one lump sum, will the amount I need to pay to the bank be lower? Like will they deduct the price a bit if I pay the full balance that is left?

This post has been edited by borneoman1: Nov 19 2020, 09:23 AM

What price, what bank, what deduction, what lower ?

Unless u get an Islamic facilities, there's probably a lock in period of 3 years which will incur early termination penalty if you settle before the due date.

But if you are paying it after the lock in period or if under islamic loan, then when paying the balance you will be able to reduce the interest chargeable.

I think it’s been more than 3 years, it’s remortgage. It’s not though any islamic loan thing either.

You mean the property was refinanced? More than 3 years ago? If there’s no lock in terms, then if you are planning to do a full redemption or partial lump sum payment, do contact the bank to get the full details of the amount you need to pay. But for full redemption, some bank do charge a fee.

I see. Thank you so much for the information!

Hope it helps. There might be some differences in actual practice as east and west Malaysia practices a slight different ways, but the underlying law still applicable