My parent is having a CIMB Flexi Home loan.

When I saw the online account, the Current Balance is MYR (40K+) while the Available Balance is MYR123K+.

From the monthly bank statement, there is New Limit until this month end is RM164K+ and Limit Reduction Amount is RM2K+

I would like to know whether my parent is still owed the bank based on Current Balance, but the Available Balance is the extra amount that can be cash out for personal use using debit card that she has?

What is the New Limit and Limit Reduction amount means?

If my parent wants to make full settlement with rebate, roughly how much she has to ready?

I'm not a CIMB personnel so I suggest you call them to really clarify but from my understanding.

Current Balance is what you still owe which is RM40k+
Available Balance presumably is the extra cash you've parked inside which you can withdraw if you choose to which is RM123k+

New Limit is the overall loan, I assume to be Current Balance + Available Balance = RM164k+. Meaning to say if you withdraw all your Available Balance, this sum is how much you owe the Bank.

Limit Reduction Amount is how much your principal has reduced for that month. Means for that month after considering the interest saved from the extra cash that you've parked inside + the monthly loan payment, the overall principle reduced by RM2k+.

If they want to make full settlement, call the bank for the amount to be paid but it should be the RM40k+ amount assuming that you don't want to withdraw the Available Balance.

Call the bank to be sure, but I think that's what the terms mean.

This post has been edited by blackchides: Nov 19 2022, 06:11 PM

If my parent already has extra cash like the amount in Available Balance, she still unable to use this amount to full deduct the loan principal & interest because of the Limit Reduction? Or she has to request the bank to increase the Limit Reduction Amount in order to fully include the Available Balance & the monthly payment to deduct the loan principal & interest?

I dont know what you mean lol. Suggest you go to the branch or call them to explain it to you.

Again I could be wrong, but what I understand is the total principal remaining is RM164k (the "new limit" after you've reduced your limit via your normal monthly payments). Your parents have parked RM123k to offset that principal (and save on mortgage interest), so remaining outstanding is RM40k+.

So if you want to fully pay off the loan, just fork out the remaining RM40k+.

Otherwise, just make your normal monthly payments until that remaining RM40k+ is gone.

ah this infamous C!MB housing loan has known to keep overpaid money stashes into one account; not doing anything to reduce principal.could this be the same case as happen to me.
i have paid the same amount for my C!mb housing loan during covid period resulting many additional fund. instead of directly use the extras to reduce principal, it will just sit silently in one separate account until you find it out and give instruction on what to do with it.
Yes, you can withdraw the amount out or use it to reduce principal - with instruction.

Not sure bout CIMB , but for harimau I put lumsum in loan account and the principal and installment reduced.. but need manually counter fill form and notify.

yes. but if no instruction or form given, what will happen to the lump sum ? i guessed it would be stay floating , not knowing what to do with the cash.

The new cimb octo app add more detail and clarity for loan account, maybe use that to check it first?

Yea I also think that way. But it still show under advance payment?
You can withdraw out too , Flexi account

I went to cimb branch to ask loan officer already, the LIMIT REDUCTION AMOUNT is your principal reduction amount

your NEW LIMIT is the total owed to bank, in your case is RM164k, so after deduct it will be RM164k - RM2k = RM162k