thanks boon, can it be made into something like below ( a widget ) that can be used by those who may be interested ?

http://www.malpf.com/2008/04/free-best-rat...ur-own-web.html

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Added on May 22, 2009, 5:13 pmopps, sorry I think I may have miss-uderstood what you meant by 'combined' sorry ...

This post has been edited by mtsen: May 22 2009, 05:13 PM

Very interested to know, if you don't mind explaining, why?

I beg to differ.

If you have enough advance payments let say 3 to 5 years, you can vary the monthly payments according to your monthly cashflow. You can pay less let say you need to spend more money during the Rayas , and CNY. Save 90% of your bonus by dumping into this account. The key word is PLANNING.

Good for those who work for commissions, that are not fixed monthly.

It surely has lot of advantages when one knows how to plan and save, and from financial planning point of view.

However, for those do not tend to see the "benefits " if they do not know exactly how to apply , then there is no difference at all.

And having Knowledge without the actual application is equally bad. Many assumptions could have been made.

Advance Payment is one of the method that you do not have to play the banks' rules, or else facing penalties or legal letters.

Likewise, I see many forumers do not seem to understand what their loan packages could do for them. The main concern is cheapest interest counts.

Remember housing loan is a long term liability , unless and until you have fully settle.

Sad to say, very least talk from from the cashflow point of view.

Mostly assume there would not be cashflow problems throughout their lifetime. Employment is 100% confirmed for the next 20 years or so. Best possible solution than worst case scenario ? Ignoring trade cycles and work pressure.

these are just perfection assumptions in Life, or so called" smooth sailing" that most people want, a perfect world i believe.

And things happened in US, would not happen here.

And if you believe in having the financial freedom in future.

Wishing all the best.

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Added on May 23, 2009, 1:01 pmYou have all the answers with you.

Why want to confuse yourself by asking ?

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Added on May 23, 2009, 1:21 pmWell,

If bank allows you 1.5 millions facility, you still can park 500k back into your flexi loan.

It might be better off from tax point of view, and a way of reducing your personal liability.

It has " business sense " though may not be a common sense.

Of course, it is your plan, so decide what is best for you.

This post has been edited by SKY 1809: May 23 2009, 01:39 PM

Wrote a long post in the other forum, copy and paste it here:

Just my 2 cents from recent home loan hunt and research. Flexi loan = prepayment made offsets principal for interest calculation, prepayment made can be withdrawn.

And there are two types of flexi loan in the market now.

Type 1, Full-flexi:
- Higher interest rate than semi-flexi
- Allow you to make any amount of partial prepayment or even full payment anytime without notice.
- Keep the facility for the duration of lock-in period to avoid early settlement penalty if you are able to make full payment within lock-in period.
- ATM card and/or cheque book provided for the loan+current account to withdraw prepayment at any time without notice.
- Monthly maintenance fee of RM10 and a one time RM200 setup fee.

Type 2, Semi-flexi:
- Lower interest rate than full-flexi
- Allow you to make partial prepayment up to amount of total installment for the duration of lock-in period anytime without notice.
- Penalty imposed if loan is to be settled within lock-in period.
- Withdraw prepayment from branch office at a cost of RM10 or RM50 per withdrawal. Amount of withdrawal must be in multiple of RM1000 at a minimum of RM5000.
- No monthly maintenance fee and setup fee.

Some glossary that i am so confused with before all the research:
1. Installment - Minimum amount you need to pay every month.
2. Prepayment - Excess amount you pay apart from installment. Please take note most banks will consider your payment made 7 days before installment due date as prepayment.
3. Advance payment - Monthly installment you pay in advance so that it will be deducted automatically every month. This amount do not offsets principal for interest calculation. However, most banks do not practice this anymore. They will suggest you to use standing instructions.
4. Principal - Your total loan amount.

Note: Please check carefully for your needs. I have chosen semi-flexi because i hardly use the cheque book facility, hardly needed to withdraw money immediately, put extra cash into loan account, keeping only 6 months of expenses at saving account for easy cashflow, and i save more from semi-flexi. Must do a simulation of your loan amortization schedule!

[Post deleted] Sorry, posted but I later realize it's not really related to this topic, and seems not able to delete it entirely

This post has been edited by Interrupt: May 27 2009, 10:39 PM

Do you know that if you put your 6 months expenses into flexi loan instate of saving account, you can save more with flexi loan?
Did you try calculate in your loan amortization with the 6months expenses with flexi loan ???

I agree with you completely.
The money in the saving account generate a very small interest while the same amount of money in the full flexi loan account reduces a big interest.
Furthermore, for full flexi loan, you can apply for the atm card for easy withdrawal and cheque book facility.

Guys,

I need to refinance my hse.
Currently which banks offer the lowest BLR?
Any recommendation?

Yes, i did calculate having all my money into the full flexi loan account. But due to the full flexi i applied requires MRTA, hence the loan amount is higher, translating into higher interest. Note that the semi flexi loan i have applied do not need MRTA. Anyway, from my rough calculation, i will be paying around RM15 extra interest per month if taking the full flexi. Probably it is not a lot for the convenience of ATM card and cheque book provided.

There is alot banks require no MRTA for full flexi. For example Alliance,CIMB,Hong Leong.
Just that maybe some bank will have slighly higher interest rate if no take MRTA.
May i know what's the interest rate offer to you for the semi flexi and the loan amount?

Further more, you paying extra RM15 per month, but do you know you saved more then RM15 per month also in term of interest if you use flexi account as your saving account? With extra MRTA for you too.

Anyway,everyone have their own needs, no one or no package is perfect. As long the loan serve you well, that a good package.

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Added on May 28, 2009, 5:50 pmIt's depend on what type of loan you need and also loan amount of your loan to decide which bank will give the best offer.
You may give more info about the type loan you need and the loan amount. So that we can give you some advise.

You may pm me also can. I'm helping people to get the best loan package and rate, free of charge.

This post has been edited by onnying88: May 28 2009, 05:50 PM

I do not see anything wrong if you could park 6 years living expenses into this loan account.

People tend to forget the main objective bcos too involving in small little issues like atm card and cheque books.

Unless you can find and and see better opportunity elsewhere, the return here is guaranteed. It is a parking harbour for your smooth sailing journey.

But whatever you do, asset allocation and cashflow are important.

Cash is king as far as future opportunity is concerned. It is positioned for future gains.

This post has been edited by SKY 1809: May 30 2009, 11:23 AM

Just for remind the typo error, futago is putting 6months of expenses (not 6 years ) into saving account.

Well, we all know the fact which is 6months expenses in flexi loan will give more saving of interest instead of put in saving account.

But still, everyone have their own choice to choose for a loan pacakge that they wanted. As long the loan is serve you well, it's a good package.

Well, as a reasonable consultant , if you make him see, probably he may want to consider as his future plan.

Otherwise, having 6 weeks are no diff from 6 months also.

It depends on how well you educate your client, in his best interest. Otherwise, Reducing the tenure by half is just a fake as well. Nothing to shout about.

You cannot put a sale in front of a need, and if it is is a need based selling, to serve his need.

This post has been edited by SKY 1809: May 30 2009, 02:20 PM

I already let him know the fact and make him see what's flexi can help in earlier post, but if the clients needs or interest is not in flexi, no point to force them to take. They may end up sign up flexi loan and still put money in FD/Saving Account.

As a consultant, our main job/objective is to educate client, let them know the best they can have. If they think semi-flexi is better for them, we just go for semi flexi. A reasonable consultant will never force client to take anythings, we just consult and let client choose for it.

Reducing the tenure by half, it will happen and it's a fact, but nothings come for free. You can't commit it, then it's different story. You wouldn't gain anythings if you do nothings.

I get the offer as this.

Semi flexi - BLR-2.4
Flexi - BLR-2.2

If the loan amount is 370k, and average principle need to pay interest at the end of year is RM350k.
In the first year, total interest to pay for semi-flexi = 350k * 3.15% = 11025

total interest to pay for "fully flexi" = 350k * 3.35% = 11725
Total interest saved if use semi-flexi = RM700

For example, I have extra cash flow which can temporary "park" in the fully flexi account = 5k, total interest save = 5000 * 3.35% / 12 month = RM14 - RM10 (month maintainance fee) = RM4.

Total save per year = RM4 * 12 = 48.

In the scenario above, semi-flexi will save more (700-48 = 652), since it able to get lower interest rate compare to fully flexi.


From my calculation, I found that lower interest rate is the key factor to reduce interest rate, fully flexi loan actually didnt save alot interest, unless you have very huge cash flow (I mean temporary cash flow, eg: will use it later to pay credit card, car loan).

If have extra money which can deposit into loan account for longer period, both flexi or semi flexi can enjoy to save interest.


Am I correct? Thanks.

My question, if semi-flexi, is there any limit of the extra payment that we can deposit to save the interest?

This post has been edited by HappyGuy: May 31 2009, 11:52 PM

Let me ask you a question, you work and get your salary every month, Where do you keep your salary?
If you keep your salary in bank, will you finish up or withdraw all your salary on 1st day of every month?
You can utilies the function of Full flexi to save even more interest by using flexi loan account as your normal saving account that keeping your salary. You can't do this with semi-flexi as you will be charge RM10- RM50 per withdraw and in multiple of RM500 or RM1000.

And also,will you finish up your salary every month? or will left maybe RM200 at the end of the month? what will you do with the extra cash every month? Seldom people will put in semi-flexi as you might use it in next month, you cant withdraw it anymore. People that using semi-flexi will pay extra base on a fix amount normaly, let say original installment is RM800, people will pay rm1000 every month, the RM200 is the fixed extra perpayment.

We hardly know how much we will use or left every month, If using flexi, you just spend money as usual and any amount that you left in account will reduce further your interest until you take it out. This is one of the different in between full flexi and semi flexi. A every simple concept, Full Flexi loan will have a current account and semi flexi don't have current account. If you using flexi loan, just transfer your money to the current account and use it as your saving account. Bank in your salary and use your money as usual. Then leave your extra cash in there if have any. Automatically it will help you save alot of money.

About your question,Either Full flexi or Semi flexi, some bank will have a limit that you can offset the principle or interest. Some bank allow you to fully offset the principle or interest.
Different bank will have different T&C. Better ask your bank clearly before sign up the loan.

This post has been edited by onnying88: Jun 1 2009, 12:47 AM

Thanks for your reply.

For your question, salary will definitely keep in bank, perhaps in current account (at least interest calculate in daily basis).
Yes, you are right, the salary will not finish up on the 1st day.

Yes, the fully flexi allow you to keep all salary into loan account to save the loan interest, but the interest actually you saved is "little" and not a lot compare to getting lower rate, based on my previous calculation.

Extra money put into fully flexi every month:
Case 1:
Rate = BLR - 2.2 = 5.55 - 2.2 = 3.35
5k, total interest save = 5000 * 3.35% / 12 month = RM14 - RM10 (month maintainance fee) = RM4.
Total save per year = RM4 * 12 = 48.

Case 2:
10k, total interest save = 10000 * 3.35% / 12 month = RM28 - RM10 (month maintainance fee) = RM18.
Total save per year = RM18 * 12 = 216

Case 3: - Higher interest BLR = 8
Rate = BLR - 2.2 = 8 - 2.2 = 5.8
5k, total interest save = 5000 * 5.8% / 12 month = RM24 - RM10 (month maintainance fee) = RM14.
Total save per year = RM14 * 12 = 168.

Case 3: - Higher interest BLR = 8
Rate = BLR - 2.2 = 8 - 2.2 = 5.8
5k, total interest save = 10000 * 5.8% / 12 month = RM48 - RM10 (month maintainance fee) = RM38.
Total save per year = RM38 * 12 = 456.


I will say that if your loan amount is high enough, you actually can save more if go for semi-flexi loan. Just to get lower interest rate, you will save more instantly.
RM700 compare to the best interest saved, which is RM456 if BLR = 8, cash flow = 10k.
Some more for semi-flexi, you can park your temporary cash into current account, you will enjoy at least 1% interest, better than none.

But of course, the semi-flexi loan doesn't save you much compare to fully flexi when your principle amount is getting lower. Can opt-for refinance again and go to fully flexi if other bank have better offer.

Last thing, I agree with you that semi flexi will always pay the fixed installment, but if can go for proper planning for the monthly expenses, people definitely can know the maximum amount they can pay for each month, to save more interest. The process of withdrawal money from loan account for semi-flexi is getting more convenient now, some bank even offer RM10 per withdrawal and 2 days processing.

For those who want to be rich.
Please use term loan.

Em, why?

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Added on June 1, 2009, 3:00 pmYa,the example really show that semi flexi will save more interest if dump in the same money in both flexi and semi flexi. Simply because the interest rate is lower for semi flexi.

But what the different here is for flexi, we will not using a fixed extra money to count, the amount in your currrent account will be extra then the fixed amount,for example you put in your salary and use your money as usual for daily espenses. From there the interest counting will totally different already. It's very have to calculate a fixed figure to show you how much you can save per month, as we dunno how fast you will withdraw the money.
Futher more, if every month we will left some extra money, normally people will just keep it in the saving account, for emergency use maybe. Seldom people will that the extra money left to put in the semi account. Normall for people who using semi flexi will just pay extra prepayment base on a fixed amount as they have calculated in their planning. But if we use the flexi, we can just leave it in the current account and use it to save more money instead of just leave it in saving account.

And also, nowaday, The interest rate between flexi loan and semi-flexi loan is getting closser already. Now flexi loan already can get up to
BLR-2.3% which semi flexi up to BLR-2.4%. Different can be 0.1% only.

This post has been edited by onnying88: Jun 1 2009, 03:07 PM

Hi!

Just curious. If I already have a Maybank current account, can I use it for the purpose of Flexi Loan prepayment? Or do I need a separate current account for the sole purpose of this loan?
TQ