Let's say I have a 35-year "normal" housing loan (meaning it's a basic housing loan, no semi/full flexi features etc) from RHB.

What is the penalty for early settlement in the 4th year?

Loan amount = RM480k
Outstanding amount = RM445k

Thanks!

Got penalty for early loan settlement?
Thought got discount for it

check your terms in SPA then discuss with bank. some got penalty some did not but with specific terms.

Upload the LA here.

SPA has nothing to do with the bank.
Generally has penalty but NO discount depending in the tnc.

This post has been edited by mini orchard: Jan 21 2023, 06:56 AM

There’s usually a penalty if you settle within the first 3 years, check your loan agreement

Call bank up la ......

These are the documents. My loan was taken under RHB Skim Rumah Pertamaku.

Standard RHB HL T&C: https://www.rhbgroup.com/files/personal/hom...ral_tnc.pdf.pdf

PDS for my specific SRP loan with RHB: https://www.rhbgroup.com/files/personal/hom...tandard_PDS.pdf

This post has been edited by contestchris: Jan 21 2023, 12:22 PM

Then SPA involve with who and what ?

This post has been edited by zerogun: Jan 21 2023, 02:28 PM

SPA .... Buyer and Developer

LA ... Buyer Borrower and Bank

I am no expert but my view this maybe refer for under-con property since the SPA got developer. From a friends who buying under-con...their SPA got developer, purchaser, bank and lawyer. I suppose purchaser can check in their SPA if got early settlement clause and got penalty or not.

In my case which is sub-sale house, my SPA only got me, bank and lawyer. And clearly stated about early settlement in details and in summary I need to notify bank and all need in black & white as advised by lawyer.

Haha... discount...bank is not a charity

Goes back to the loan agreement. Most probably have minor penalties as banks have their own projected income/profit from your loan service.

So if you are paying off early, it disrupts their projection hence need to charge early penalty, for the inconvenience (so to speak)

Your loan agreement shows 2% of outstanding amount.

Didn't your loan officer explain to you prior to signing the letter of offer from RHB bank?

Developers will be more than happy to give a discount for early settlement.