Dear sifus,

I got my first islamic house loan approval from BSN.

It is a semi flexi loan and my only option, so i took the offer.

I understand that semi flexi loan allow you to pay additional amount but cannot withdraw the money back.

I also understand that i will get more discount on interest if i make extra payment on the first few years compare to extra payment after 5 years.

I am planning to take RM30k(my investment fund) from ASB to reduce the loan interest on the first year.

Is this a wise decision?


* loan detail *

loan amount : RM150 k

interest rate : 4.45%

tenure : 26 years


This will be my own stay property and i wish to get the most discount on the loan interest.

if you want to clear up the loan fast, then do it la

I don't know about the full circumstances but if you are so willing to take out investment to repay, why didn't you loan less that amount in the first place?

And if the ASB earning % is more than interest rate, don't bother

My bank with semi flexi allow withdrawal but need to pay

For semi flexi you can generally perform withdrawals of any extra payment but there’s a small fee associated with it and you usually have to go to your bank to do it. I’m doing kinda the same thing as you, I moved some FD funds to my mortgage account because FD at 3.8% is less money than the mortgage 4.x %, so I’m “losing” money by incurring more interest over time in the mortgage account if I kept my FD.

Why not just use the dividends instead of touching the principal.

4.45% is expensive loan

either are fine. ASB, Houseloan, FD
So, if any of these are higher rate ,just got for it. Excluding admin and pricessing fee from asb.....

Is just math calculations
And housing loan are daily calculated interest...do the math

I think the dividend you are getting is higher than the 4.45%.. If yes, consider to keep your investment and work hard to pay more servicing your mortgage

Yes. ASB dividend is 5.25% this year.

If i choose to keep the investment fund in ASB and pay my house loan normally, i afraid after 5 year opr up until 6-7% higher than ASB.

By the time i think its too late to put in lumpsum money on the house loan already.

Because the most discount on interest is at the first few years right?

This post has been edited by Lonelybird: Dec 30 2023, 07:20 PM

Semi or full. U can put money in and withdraw no issue. Just the fee is different.

Yes if ASB dividend is much lesser, then it is wiser to put into loan account to reduce the interest.

It’s better since you can withdraw it in case of rainy days.

bank officer said can put money but never say can withdraw the money. need to check with my bank offcer again.

Islamic loan abit straight forward one. If can withdraw the money then its an advantage for me already.

Why profit rate so high? Loan amount also quite low - is it the reason other banks don't even want to consider it?

Can share a bit reason why only BSN accepted your loan application?

Amount small is higher rate one la

150k ma

I applied with 3 banks. Maybank , HLB and BSN.

I was running out of time to sign SPA. so i proceed with BSN.

Maybank and HLB only called me on the 3rd weeks after i signed with bsn.

Maybe you are right, small amount they like want or dont want take only.

Kudos for wise financial planning.

However keep some cash for emergency.

I would keep
80% on the highest rate/ return
10% to another lower rate
10% to the lowest rate
you never know what gonna happen when you need cash...

I would keep
80% on the highest rate/ return
10% to another lower rate
10% to the lower lower rate
you never know what gonna happen when you need cash...

System down, wrong password, forgot how to reset, Phone gilek

This post has been edited by taitianhin: Dec 30 2023, 08:29 PM

Not really, the first 10 years or more, most of the installment is for interest.

One way to get best of both worlds (pay down principle and yet have money in higher return investments) is to pay double the principal portion of your installment for that month/year (you can get that from the loan statement sent half yearly, or you can ask the bank to give you the breakdown.of interest vs principal portion0. If you do that, a rule of thumb, you'd settle your loan in half the time, the principal amount at the initial years will be low and thus less burdensome on you, during the later part of the loan, principal portion would be higher and thus your plan to top up one time the principal amount will be more burdensome but that time your income should be higher and inflation would make that amount less significant.

I came across this thread coz I recently got approved for a BSN MyHome-i semi-flexi loan.

According to the banker, she say is semi-flexi. But when I asked about redraw facility or withdrawing the excess money that i put in, she say cannot withdraw. no such facility. Only can put in to reduce the principal. Cannot withdraw.

I'm confused. I thought the term flexi means can withdraw. Just that semi-flexi may be more troublesome (need to do over the counter and require approval) than full-flexi.

Even the BSN website has a Redraw Facility statement and states that the Redraw fee is RM10 per withdrawal.

So my question is, is there such semi-flexi packages out there like this where cannot withdraw the excess money? Or the banker don't know what she talking about.

This post has been edited by emiliov89: Nov 12 2024, 07:20 PM

walk in and talk with branch manager on your issue.

Yea good choice..

U might look at the 1% difference..
But overtime, if u finish this loan fast, then you dont have to pay the compulsory fire insurance policy on your loan which is a few hundred.. that in return is also a saving

This post has been edited by Boomwick: Nov 12 2024, 08:15 PM

With or without, you also need to take up fire insurance on your prop.

When i signed my BSN loan agreement, i asked about making extra payments.

However, the officer informed me that i can only make additional payments over the counter and cannot withdraw from the account.

To pay the principal amount, i must pay at least three months worth of monthly installments or more.

I find BSN's policies somewhat restrictive compared to other banks. Nevertheless, since it was my only option at the time, i had no choice but to accept the terms.