Hi members,

I bought a condo at Subang for investment and 2 banks ie. PBB and OCBC came back to me with their loan package. Need some advise because OCBC officer said their package is better. I'm 44 years old and this is my 3rd property.

Public bank package (conventional):

Loan: RM477,260
ODLTA: RM3,959 (self finance)

Total: RM477,260

Rate: 3.85%
(SBR+0.85%,SBR@3.00%)
Tenure : 26 Years
Instalment : RM2,430
ODLTA coverage of RM75,000 FIXED for 13 years


OCBC package:

Loan amount: RM 443,851 + Insurance RM rm18,331
Tenure: 22 years
Interest: 3.8%
Instalment: RM 2619

(Self pay by cash)

MRTA coverage 13 years + 4 years under construction, premium charge RM18,331

OCBC said their tenure shorter is because have to minus under construction period 4 years, insurance mrta amount is minimum amount. If compare with other bank shorter tenure can save more interest, and OCBC interest rate is better.

I'm confused which one should I choose. And whether I can negotiate lower insurance from ocbc or not.

This post has been edited by sugarbaby: Apr 25 2024, 03:40 PM

Just my lousy RM0.02 sen:

It depends on the purpose of you buying the property.
For capital, rental or own stay or a combination of 2 or 3 reasons.

Anyway, I'll take the one with lowest monthly installments.
Looking at your tenure, you seems quite young, can still
qualify for 26 years loan.
This might be your first or 2nd property but it shouldn't be your last.
Having a lower installment means you can save more for the next or to pay misc expenses once get keys.
If you decide to rent out, easier to break even.

Congratulations on your new loan....ya

And don't listen too much to a toilet cleaner, likely to know nothing about properties...ya


This post has been edited by Longshot: Apr 25 2024, 02:10 PM

If u got alot cash reserve take shorter loan period 15 years , yr monthly payment increase 200-400 saja but u save alot money compare to 30 year loan . ( 40-50% what u need to pay to bank if take 30 year ) . Go play with those online mortgage calculator they are quite good , u can see the full picture like total amount pay to bank etc

This is for investment and it's my 3rd property. I'm 44 this year.

Both banks offers really good interest rates. Public Bank ODLTA coverage of RM75,000 FIXED for 13 years with the price of RM3,959, I think this one still consider acceptable since it promised you a FIXED amount as MRTA tend to depreciates on a yearly basis.

OCBC is it a compulsory to take their MRTA only you eligible to get such rates? For it's price, I think you can get a life insurance to cover your mortgage just in case anything happen to you. You can buy a basic life insurance that covers about RM300,000 that cost about RM960 a year, maybe less or more depending on your age and health condition. Down the road for 22 years it still cheaper or almost the same amount of what you are paying to MRTA however this does not depreciates. This is just my 2 cents. You can doing the calculation here

Just curious, does both of these banks offers you flexi mortgage?

If yes, you might want to check with the banks whether are there 70% capping and must charge remaining 30% interest as minimum. I know Public Bank has this capping, you have to be very careful with them

Any others charges like withdrawal or maintenance fees?

Withdrawal depending on bank, usual are RM25. I know UOB charge for RM50 per transaction.

Maintenance fees as standard are RM10 per month. Each year you have to pay them RM120 down the road for your mortgage tenure, you have to pay the bank this fee unless there'll be early settlement.

What are their lock in period? I think most banks now offers 3 years lock in period start from 1st disbursement date.

Hope this helps

Cannot ask for ocbc mrta 13 years too?

What is ocbc SBR+?

This post has been edited by jojolicia: Apr 25 2024, 02:52 PM

Hi... ocbc is flexi loan without service fees & without maintenance fees, no capping on advance payment. Lock in is 3 years.

Public bank is flexi loan too. Non refundable fee RM50 will be charge per withdrawal, No limit for withdrawal. (As long as it is the extra fund which you pump in. You could withdraw all) and limit per withdrawal is once a month. Lock in is 3 years.

Now ocbc said can reduce the mrta. SBR is 3.00%.

(Self pay by cash)
MRTA coverage 13 years + 4 years under construction, premium charge RM18,331

This post has been edited by sugarbaby: Apr 25 2024, 03:44 PM

You can ask both to waive the insurance if not required, anyone a good protection is always good for your primary residence. No harm try more banks

Now ocbc say an reduce mrta further.

(Self pay by cash)

MRTA coverage 13 years + 4 years under construction, premium charge RM18,331

This post has been edited by sugarbaby: Apr 25 2024, 03:39 PM