guys i need all the sifu in here to advice me which bank to choose from for my housing loan

publick bank

Purchase price: RM400,000
Loan: RM360,000 (90%)
MRTA: RM15336 ( cover 90% @20y +CI RM50k @15y)
Total Loan: RM375,336

Interest rate : BR+70%
Currently BR rate is 2.27%
Effective lending rate :
2.97%

Loan tenure : 32years

Monthly repayment : RM1520




where is maybank

Loan 360k rate..3.05%
Mrta sum rm360k - 20 yrs
loan tenure is 32 years

Inst rm1513 month


i hv no experience in buying house and this is my 1st house

would appreciate alot all the sifu feedback

choose the 1 which can exclude mrta

Opt for the one that offered lower interest rate,insurance will come handy shall touchwood unfortunate incident happen

It’s possible to get 3% for Maybank. Ask the agent to ask for approval for 3% interest rate.

maybank do offer exclude mrta

but people are encouraging me to take mrta as it wont pass the burden to other if something bad does happen....

maybank 3.05 is their best rate aredy....i already nego with them...

thats what im thingking.....but some are saying pbb rate is a trap with later down the years it will increase....

yes but you can get mlta from outside

Almost always it's better choose lower interest rate, MRTA recommended for worst case scenario and it's relatively cheap anyway, pay one lump-sum premium then forget about it.

Since the monthly installments very small difference Public Bank is the better option here with MRTA coverage, especially if you have family/planning to have family.

MRTA for half or 2/3 loan tenure enough already..when the house almost fully paid off left few years I think its not too big a risk to take.

MRTA factored into the loan itself actually also almost double the total effective premium you are paying as compared to one-off purchase. If for me I'd use the MRTA fee to get an additional carpark purchase

This post has been edited by ceo684: Apr 8 2021, 08:41 PM

If you took mrta then it’s definitely possible to get 3%. My mbb loan got 3% with mrta. Just the approval has to come from the ceo as what my agent did.

This post has been edited by GreenSamurai: Apr 8 2021, 08:50 PM

The only variable is spread which is 0.7% for PBB aside from hefty increase in rate if you default installment for more than 3 months

I would say go for Public Bank. Public Bank known to have low interest rate always

Get covered.

can explain abit as i dont understand this part...tq

Go with public bank, and take the MRTA, if this is for own stay.

Base rate @ 2.27% is permanent while Spread rate @ 0.7% will follow Bank Negara policy which at the lowest now so if revise upward then yr installment will also impacted....for the penalty rate increase you may refer the letter offer for the details, PBB quite strict in this part and even if you appeal unlikely you will get back the original rate. If down the road touchwood you encounter challenges in monthly installment it’s always best to approach the bank earliest possible or alternatively AKPK to relook into how you can restructure your outstanding

If dont have a self life and/or medical insurance policy, sign loan without mrta. Use the money to buy a policy. Premium paid yearly is a tax relief for personal income tax .... RM3k for life and RM3k for medical currently.

Life policy ..... cash value at the end of tenure or coverage in the event of death.

Medical policy .... private medical treatment in the event of serious medical conditions.

Hi, it actually work in other way round, BR is indeed the variable rates during the tenure, and it depend on the bank'cost of capital, so when BNM lower down the OPR, most bank will also lower down their BR. All bank will publish their BR on their website.

The spread (in this case 0.7) in this case is fixed over the tenure, but PBB will only be increased it if you failed to pay for two mths or lapsed payment 3 times in a year(this is for PBB, other bank might be different), the increased rates can only be lower down to normal rates as per agreement once you settle your outstanding payments. So don't ever lapse your repayment.

So PBB spread is higher compare to other bank because their BR has been the lowest in past ten year, so most of the time their total rates is still lower compare to other banks. I have been comparing my PBB loan rate with my another loan from other bank, and also with my friends loan rate from different bank. So far we don't have loan from MBB yet so can't comment much, but if it also work with BR+Spread, then TS should take in the benefit of MRTA which is inclusive in your PBB loan, instead of just looking at the final repayment. In TS case, I think MBB repayment is lower because without MRTA.

For insurance, it is always better to have coverage. If you plan to have marriage or you already married and have dependent, then should take MRTA, unless your own life insurance and CI have enough coverage.

This post has been edited by Jingle91: Apr 9 2021, 08:52 AM

the maybank also with mrta....