30% for most bank

Increase your earning ability lor.

it's not bank standard calculation but it's a universal formula for mortgage calculation. if you not agree, can you show your correct calculation?
of course you are paying the most interest in the beginning because the interest is based on the principal which is at the max compare to at the ending of your loan period.

That's why housing should always be socialised.
Leased/let out by the government.
Singapore did it right.

Apa house only 350k ?

Banyak lor.

Old subsale condo, apt, flat.

Rumah idaman.

Selangorku, prima

i think u got it wrong,.. 78k is paying back the capital,.. not interest,.. 30k is the interest,..

if u fully settle your loan today,.. then

flat rate interest = (30k/108k) / 6 years = 4.6%

very near current market what ??

You mabuk ketum ke? Again, if they want to change it they can but they won't. No such thing as 'universal'.

I can't do shit because I don't have money to buy house in cash. You pandering to the banks like you own them.

We actually been brainwashed to loan a house for 25-30 years. Actually, if we settle it like a car loan (i.e 5 to 9 years), the bank wont benefit that much.

This is important.. to those taking >25 years loan the first few years is critical.. if monthly you can double up the repayment you actually need around 12 years only to completely pay the property.

Technically it doesn't reduce the duration, it reduces the outstanding amount

Say you have a outstanding balance of 100k, and monthly repayment is 1000, 700 goes to interest and 300 goes to reduction

You put extra 50k into the account, now your outstanding is reduced to 50k, you still pay althea same amount of 1000 monthly, but due to reduced outstanding, you pay less interest and more of your 1000, say 700 can goes to principal reduction.

Then up until a point where the advance payment = outstanding, you can opt for full settlement. That's where people say advance payment can reduce loan tenure

yup, i think is islamic....
i ask the banker,
the banker say no need to see the amount, just pay nia...
it will reduce at the end.....
but pay 7 years already,
the amount still same....

Talk like so easy all can afford pay 2x instalment, money fall from sky

Nop his right first few year it will always going to be a large portion to interest and if you follow the schedule most likely on the 10th years onwards more will be going into principal. That's how loans work.

Buy property that the installment is 1/5 1/6 of your income then can la
Buy 1/3 one is memang cannot

Well it's your choice. Instead of buying that ipong i take that 6k to pay more. May not be easy to you but that's what I'm doing

you think bank doing charity work keh ? They need to pay employee, pay rental fee, pay electric and water bill, pay system and best of all pay their boss and investor .... that what they say....bank is a certified along approve by gov and bank negara.....

This post has been edited by doppatroll: Oct 10 2023, 11:43 AM

baru tau ke? pay more to reduce the principal :X

looks like you don't have anything to substantiate your claim, okay thanks.

Haha ......very funny. First few years is something like paying the bank interest from the money you borrowed. Then after that the principal will only go down slowly.