Hi sifus, property newbie here and am comparing the following for a 775k loan for 35 years
Public bank
BR+0.63=2.9%
MRTA 15k
Semi flexi

RHB
BR+0.45=2.95%
MLTA 19k (500k for 30 years)
Full flexi

As the diff is only 0.05% not sure if the lowest = better option

1. Is there a significant difference in terms of convenience dealing with these 2 banks? (when wanna put in extra money, redraw, able to check the loan balances, online banking, dealing with banks) The RHB option is under my 1 full flexi home loan, which I have read through the comments on the mechanism and the issues from some older threads and it seems acceptable to me. Meanwhile i haven’t been able to find similar discussion for pbb but it seems like the impression on pbb is not always the best. Worthwhile to enjoy full flexi for extra 0.05%?

2. From my understanding the spread is fixed while the BR is adjustable by the bank, so is it safer to choose RHB as it has lower spread? But seems like pbb has always have a lower BR, as per their past BR records. Since I still have many many years down the road, can I assume pbb will still offer lower rates than RHB when our OPR / economy back to the normal days in the future?

3. I tried to read up on MRTA and MLTA, seems like MLTA offers more flexibility, in general what are some factors I should consider in term of the amount insured and number of years? Is the proposed number of year and amt insured standard or I may negotiate to lower it? Or in general I should just save a few thousands and get the MRTA (ie cuz also can get lower loan amt and lower interest from PBB)?

Or overall which one is better?
Sorry for long questions here, really appreciate all your responses and suggestions, thanks!

This post has been edited by christine_1236: Jan 9 2021, 11:27 PM

1. RHB MY1 Full Flexi Home Loan
If you want to knock off principal you need to do it in 1K blocks.
So either 1k 2k 3k all can.
1100 cannot. 1999 cannot.
Can redraw by going to bank branch (I don't see the option in the rhbnow)

The RHB full flexi - to save on interest, you must have Principal Repayment mode selected, pay in 1K blocks IN ADDITION to ur normal installment.

If you just overpay (paid 3k on normal mode for a 1700 installment)
This does NOT mean u will save some interest from the 1300 extra
This is (stupid) as your 3k payment means you covered the installment as 1700 normal this month and (1700-1300) = just need to pay 400 next month.

--- > normal mode works like c/f to next installment (like TNB bill of 263.00 u paid 270, the 7 bucks just c/f to next bill, so next bill u have c/f -7.00 no interest saving!)
--- > it would be better if (for 1700 installment) you just pay the 1700 in NORMAL mode. Extra money in 1K chunks, do PRINCIPAL REPAYMENT mode.
So then you will ask ok for that 3k I have, I already did the 1700+1K chunk then balance 300.
That balance collect collect until 1K chunks and dump it in as principal repayment will mean lesser interest in the end of the 35 years.

Early in the loan (under con) if can dump in more money do it (at interest 4.45% each dollar today I can dump in in the 1K chunk mode is 2.10 saved after 35 years)
When it is late in the loan the interest already charged so that 1 dollar put in as principal knockoff, will not have such great effect.

2. Lower spread better. PBB one you must have perfect payment record (miss a bit then interest balloon to like 5.15% now)

3. MRTA MLTA is just risk offloading IMO. If you have sufficient insurance coverage or the savings to cover should anything happen then no need.
MLTA can transfer to next property loan.
MRTA is like specific to this loan. Cannot transfer.

I actually deal with these two banks as end user - and unless you have a lot of spare time to waste, go with RHB.
PBBANK want to get home loan statement for refinance need to visit home branch. Very paper based.
RHB wanna get savings acc statement (which ironically was used by 3rd party channel loan agent for my RHB home loan application) .. easily done I just simply walk over from my office then and got it on the spot (pay a few bucks printout cost).

This post has been edited by ceo684: Jan 9 2021, 11:41 PM

Thanks for such a detailed reply, would be helpful if you may clarify abit further?

1. your clear explanation really helps in my understanding
but just wanna check on which fund I can withdraw from in case I have made excess payment
Assuming it's Jan now, I pay my installment every month as per normal using "normal" mode + dump in extra 1k every month via "principal repayment" mode
In early July, can I withdraw the extra 6k that was dumped in via "principal repayment"?

2. Could you please elaborate more on how missed payment will caused the interest to increase to say 5.15%? I could be wrong but from my understanding, the int rate may only increase when there's a change in OPR/ BR, which will affect everyone, and the spread should have been fixed upon we sign the loan agreement, so I am not sure how one's payment behaviour will affect the int rate later?

Sorry to hear your experience, this just further confirms my general impression on PBB
I am not familiar with both RHB and PBB as I havent dealt with either of them, and this is such a long time commitment so am putting more thoughts to it.
Would you say the online banking part for PBB is equally as painful as dealing with their customer services? (ie paying normal instalment, dump in money, checking loan balances etc)

This post has been edited by christine_1236: Jan 10 2021, 02:53 PM

U can redraw in Rhbnow.
Own acct>loan redraw.

No need to go bank

OMG.. just saw this.... thanks for this... didnt know i need to do redraw for my extra payment made and then do Principle Repay... dam... have been paying extra 100 bugs for many years... should have saw this last year ..conned by RHB agent earlier.... thanks for this buddy~