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Financial Flexi home loan, Any cons

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onnying88
post Sep 12 2008, 04:36 PM

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QUOTE(hanif444 @ Sep 11 2008, 01:04 PM)
i wanna ask...

I taking a flexi mortgage loan with BLR -1.8% for 216k loan with 30yrs.monthly Rm1160.

Principal  260
Interest 900

if i dump in 200k on 2nd month,mean i still paying 1160

Principal 1094
Interest     66

is it calculate this way??
*
Yup,your interest will be count as
216k-200k = 16k * BLR - 1.8

If you dump 216k, you interest will be count as
216k-216k = 0 * BLR -1.8 = 0

So your monthly installmant Rm1160 will 100% become principal.

This is y some people will take a loan even they already have the money to buy with cash in hand.
They can buy a house with the cash and still have the cash liquidity in case of emergancy.

Added on September 12, 2008, 4:53 pm
QUOTE(DinKnight @ Sep 9 2008, 03:17 PM)
I'm very interested in this terminology between Flexi and Fixed loans as well, need to decide which type is better for me in the long run to save on interest.

By the way, I recently called up one of my housing agents, I want to buy an RM 255K house, loan 90%, tenure 30 years, BLR 6.5... she calculated and said the monthly installment is RM1,300. Wonder if it is correct....

By the way, I am 25 this year. Can tenure be 35 years?
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For me i will definately go for flexi loan. As every Rm1 we have in hand, we can save Rm1 interest.

If you earn Rm5k and spend Rm5k every month,then ony you go for fixed loan.

Even some bank state that they are semi-flexi ,but there are alot term and condition.
Which is not flexi to me.

I deal with some customer who dump in extra money but it didn't save any interest for them.
After checking i found that the money is stay in bank as early payment, which use to deduct every month for the installment. Not early settlement.





This post has been edited by onnying88: Sep 12 2008, 04:53 PM
onnying88
post Sep 12 2008, 10:20 PM

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QUOTE(DinKnight @ Sep 12 2008, 08:09 PM)
onnying88, many thanks for your kind advise. I will take note of it.
*
No problem smile.gif

One more things to take note if u really go for flexi,
You have to open a current account with the LO u signed. No need to put Rm1000 as normal current account needed.
your extra money and monthly installment will all put in the current account that will link up with the loan.
This is a important step for flexi loan.

If for fixed loan, they get the rate which offer lower interest then flexi.
which normally fixed loan have lower interest rate then flexi.


Any problem according for the housing loan,feel free to pm or ask me.


Goodluck in getting your dream house biggrin.gif


This post has been edited by onnying88: Sep 12 2008, 10:23 PM
onnying88
post May 27 2009, 11:39 PM

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QUOTE(futago @ May 27 2009, 08:07 PM)
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!
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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 ???
onnying88
post May 28 2009, 05:47 PM

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QUOTE(futago @ May 28 2009, 11:25 AM)
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.
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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.smile.gif

Added on May 28, 2009, 5:50 pm
QUOTE(pooh88 @ May 28 2009, 10:32 AM)
Guys,

I need to refinance my hse.
Currently which banks offer the lowest BLR?
Any recommendation? hmm.gif
*
It'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. smile.gif

This post has been edited by onnying88: May 28 2009, 05:50 PM
onnying88
post May 30 2009, 12:56 PM

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QUOTE(SKY 1809 @ May 30 2009, 11:15 AM)
I do not see anything wrong if you could park 6 years living expenses into this loan account. hmm.gif 

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.
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Just for remind the typo error, futago is putting 6months of expenses (not 6 years smile.gif) 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. smile.gif
onnying88
post May 30 2009, 02:43 PM

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QUOTE(SKY 1809 @ May 30 2009, 02:08 PM)
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.
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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.
onnying88
post Jun 1 2009, 12:44 AM

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QUOTE(HappyGuy @ May 31 2009, 11:36 PM)
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?
*

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
onnying88
post Jun 1 2009, 02:46 PM

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QUOTE(jasonhanjk @ Jun 1 2009, 12:45 PM)
For those who want to be rich.
Please use term loan.
*
Em, why? hmm.gif

Added on June 1, 2009, 3:00 pm
QUOTE(HappyGuy @ Jun 1 2009, 11:55 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.
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Ya,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
onnying88
post Jun 21 2009, 10:55 PM

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QUOTE(emy_77 @ Jun 21 2009, 07:22 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
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The current account must be in the same bank with the loan, if yes then you can request to use the account. If can't then you just close the old current account and use the new one that link with the flexi loan as your new current account. smile.gif

Added on June 21, 2009, 10:56 pm
QUOTE(eugene jk @ Jun 21 2009, 08:06 PM)
Agree...
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Why? hmm.gif

This post has been edited by onnying88: Jun 21 2009, 10:56 PM
onnying88
post Jun 23 2009, 11:16 AM

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QUOTE(jasonhanjk @ Jun 23 2009, 08:40 AM)
Before I give you guys direct answer why term loan is much better, here are 2 examples for you guys to discuss.
Mr. A had taken a $100k term loan @ 5% for 30 years.
He has $100k cash and re-invest it, the return is 10% per year.

Mr. B had taken a $100k flexi loan @ 5% for 30 years.
He has $100k cash and park it in his flexi account, thus cancelling his interest payment.

Both of them use their $100k for monthly re-payment.
Who is richer after 30 years?
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If there is a 10% return every year guaranteed and safe, everyone is going to be rich, and i will be the 1st one who will cash out from all my property to invest in it. smile.gif

Of cause if there is a better return then your loan interest, PLEASE do invest in that. But every investment vehicle have their own risk, please think twice if you can really take up the risk or not. So please invest with the risk that you can affort. If I have 100k in hand, i will not take all 100k for invest. Except the 10% return is guranteed and safe. (but there can get a 10% return guaranteed and safe in this world?)

More over,will you invest your emergency saving in the investment vehicle too? for me, i will not do that as i will need to use it anytime for emergency. But if i'm using flexi loan, i will save my emergency fund and others temporary cash flow in the flexi loan and in the same time enjoy/save a 5% interest guaranteed. And i still can use the money in flexi loan anytime i want.

If we have a good financial planning, we will seperate our money in few fund like emergency fund,investment fund, retirement fund, children education fund, and etc... Thus maybe, about 20%-30% of our money will be goin to investment fund. (for this case will go in the 10% investment vehicle). It is not advise to put 100% of our cash into one fund or investment vehicle.

So, for me
If i have a loan of 100k and 100k in hand, i will still put 100k in the flexi loan.

But if there is some investment vehicle that give better return then my loan interest,and i feel it's safe enough for me, then i will invest maybe 20k in that. And leave the remaining in flexi loan.

And if there's a investment vehicle that give 10% return and it's GUARANTEED and SAFE.
I will put all my money in that and even cash out more from my porperty and invest in it. And wait to be rich. smile.gif

But in reality it's impossible to find such perfect investment vehicle. Or maybe i haven't found one yet cry.gif

onnying88
post Jun 23 2009, 11:31 AM

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QUOTE(idoblu @ Jun 23 2009, 11:25 AM)
went to talk to OCBC today. quite good also their system. its like flexi but no monthly fee. if and when you withdraw then only you pay RM10.

what i like is its very clear cut. their payment slip has 2 check boxes. one for Installment and one for Capital Repayment. If you check Capital Repayment, and you bank in say 20k, that 20k you can still withdraw. If you check the Installment box, that 20k is consider as advance payment. So the next few months, you wont need to pay anything if you wish.

Both will reduce interest charges.

Non-Zero moving cost rate is -2.4%. 5 years lock in and 3% penalty.
*
Yup, For those who prefer semi-flexi, OCBC is one of the attractive bank.
onnying88
post Jun 23 2009, 01:38 PM

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QUOTE(idoblu @ Jun 23 2009, 11:35 AM)
but valuation fee have to pay also....sad.gif
i dun mind paying loan agreement
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As i know all non-zero package will need to pay the valuation fee by ourself.
onnying88
post Jun 23 2009, 02:07 PM

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QUOTE(idoblu @ Jun 23 2009, 01:47 PM)
is there a method to calculate valuation fee? is it based on house price or loan amount?
thanks
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It base on house value.
onnying88
post Jun 24 2009, 12:15 AM

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QUOTE(jasonhanjk @ Jun 23 2009, 10:49 PM)
These examples I make them easy, so for most people would understand easily.

If I include financial planning, I would give question base on 10 properties with 1 mil loan and 1 mil cash.
The below spoiler may be nasty towards you, you may choose not to read them.
» Click to show Spoiler - click again to hide... «

*
If you have 10 properties with 1 mil loan and 1 mil cash, Will you buy 1mil of silver?
Use RM10 to earn 10% is easy, But 1mil to earn 10%, will it be the same? The larger of amount, the harder to control the profit. And the risk is higher too.

Yup, your example is very easy and can be easily understand. But why still majority of people not doing that way? Simply because they know there is risk to do that. People might not so free to look for good investment vehicle to invest and manage the return.

We all know that "NO PAIN NO GAIN" But how much pain we can take?
Same in here, how much risk we can take?
Majority people who have housing loan or property are in the age range of 30-40+, With family to take care and alot of commitment. Guaranteed and safe will be the priority. Have everyone think of it?

Yup, silver drop from USD$16 to USD$14, but did you know it will drop yesterday? And why not selling it yesterday if you know it will drop today? What the price you brought in earlier? Maybe you have the time to moniter the silver price everyday and sell it off at a profit price. But not everyone manage to do so.

People will not simply invest money in to somethings that we not familiar with. That's why there's still alot people putting billions of money in FD just for 2.5% p.a. Simple because people perfer and like the words 'guaranteed and safe'. And now flexi loan offer people GUARANTEED and SAFE return of 3.55% (BLR-2%) if they put money into flexi loan,instead of 2.5% in FD. Why not dump in flexi loan? And in the same time have the liquidity to withdraw it anytime also. Just use your flexi loan account as your normal saving account, you will suprise with the money that you can save. smile.gif

Added on June 24, 2009, 12:28 am
QUOTE(idoblu @ Jun 23 2009, 10:32 PM)
i dont know why but the marketing person at OCBC when he calculates for me what my loan agreement will cost and also valuation fees - it seems so high. I use the online calculator to determine the loan agreement fees and stamping fees but when he told his estimation - it is a few thousand ringgit more.
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Just straight away call to the law firm that your banker going to pass your case to, and ask for quotation. It will be more accurate.
Don't expect marketing person will know everythings, sometime they just follow what they know and answer us simply. Somemore he is just estimate for you in your case. Estimate = not accurate. smile.gif

You may also look for your own lawyer if you feel their lawyer charge higher.
If you need recomment for lawyer, i have few for you to refer. Pm me if you need help. smile.gif

This post has been edited by onnying88: Jun 24 2009, 12:30 AM
onnying88
post Jun 26 2009, 03:40 PM

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QUOTE(jasonhanjk @ Jun 26 2009, 11:10 AM)
Then here is another example:

» Click to show Spoiler - click again to hide... «


Does the above examples look similar to my question in post 87?
The author got 20% return for 100k invested in 2004 and got 100k cashflow in 2007.
100k invested and 100k return per year, it's a 100% return.

If he put those money in a flexi account in 2004, what will he get in 2007?
The answer would be just a house with payments in principal only.
As you mentioned, you have a savings account that can cover up to 6 months of your expenses. Using that 6 months emergency fund to put in your flexi loan, thereby offsetting your principal makes good sense, no? I believe will easily cover back the RM10 monthly mantainance fee plus save you a good few years of your tenure.

Where is the rates I ask for in post 102?
Using numbers, I can easily show that using flexi loan is a bad idea.
*
Very good example there,No doubt the couple is a very sucessful invester.
But there is alot of failure investment too, Why you never mention it?
What if the couple lose the 100k at the start? how fast they can earn back the 100k? Maybe for some people in here, will take alot of years just to earn back the 100k. You expect them to invest the 100k again after 10 years?

And, I never ask people to invest money and lock their cash in flexi loan, i just ask people to put their cash flow into flexi loan. I already mention earlier, if there is others investment that give better return then the loan interest, PLEASE GO FOR IT.

Summore the example it has nothing to deal with flexi loan, In the example, the couple have alot of cash flow, just they never put their cash in bonds, equities, or mutual funds that will lock their cash. Have you wonder where the the couple keeping their cash flow? I wonder. hmm.gif
What i think is, if the couple using flexi loan, they can earn even more money too. By putting their cash flow that not in use into the flexi loan. smile.gif



This post has been edited by onnying88: Jun 26 2009, 03:52 PM
onnying88
post Jun 27 2009, 12:12 AM

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» Click to show Spoiler - click again to hide... «


Below is my real life calculation, smile.gif
Attached Image

From my MOA calculater.
FLEXI LOAN
Rate BLR-1.6% or 3.95%.
RM10k put into flexi account
Total interest paid: $51,434.00
Tenure shorten to 24.8 years.

At 24.8years, i can settle my loan already but i will have to pay with my RM10k that i've save in the flexi loan. So in order to have RM10k after the loan settle (same with the term loan), i continue to pay my installment/saving until i get beck my RM10k. Interest for this time will be 0% please take note.
So RM10,000/ 475 = extra 21mth to pay so that i can have RM10k in hand when i do settlement.

So i add up 24.8 years or 298mth + 21 mth =319 mth
Which mean i shorten my tenure to 360-319 = 41mth

So let's count the extra for flexi loan
i pay extra RM12 for installment due to the interest rate higher. (RM475-RM463=RM12)
So for total 298mth x RM12 = RM3576 (298mth to settle my loan or offset my remaining balance)

Monthly fee RM10
319mth x 10 = RM3190 (extra 21mth because i want to continue pay 21mth in order to get back my RM10k)

So i'll pay extra RM3576+RM3190 = RM6766 because i'm using flexi loan.

So for the interest counting for term loan
As we can see from MOA, the interest will be RM66,774 for term loan. We minus RM10,975 for the interest we get from the RM10k we put in FD.
RM66,774 - RM10,975 = RM55,799 total interest pay for RM100k 30years TERM LOAN

Now for the FLEXI LOAN part.
Total interest = RM51,434 (refer the MOA)

Interest between term loan and flexi loan,
Term loan interest - (Flexi loan interest + extra pay using flexi) =
RM55,799 - (RM51,434 + RM6766) = -RM2401
Which mean we pay extra RM2401 for using FLEXI LOAN.

It's not the end of my calculation yet.
Still remember we already shorten our tenure by 41mth when using flexi loan?
RM475 x 41mth = RM19475
RM19475 - RM2401 = RM17074 total saved for using flexi loan

And remember at the time i do settlement, i still have the RM10k in hand too. smile.gif

So which is better? Somemore this example is purely putting RM10k in flexi and leave it for 30years only, Which you did not utilies the flexi loan by put in your salary, emergency saving, and others cash flow yet.

This post has been edited by onnying88: Jun 27 2009, 12:45 AM
onnying88
post Jun 27 2009, 11:59 AM

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QUOTE(jasonhanjk @ Jun 27 2009, 08:21 AM)
I will say again what I said before in post 100.
<My choice is to be rich.
In my plan, I have a plan to be safe and secure, a plan to be comfortable and a plan to be rich.
I have all of 3 plan, I don't give excuses not to be rich.>

That RM10k is meant for the safe and secure plan.
You don't use it to pay off your mortgage.
That money is needed when emergency arise, it can happen any time, any day or any week.
*
You need calculation, there's go my calculation for you. Refer post#110
One to One compare, flexi loan still save extra RM17074 for whole tenure.
Remember, The RM10k i use in my calculation is never use to pay off my loan, i still get my RM10k cash in anytime during the whole tenure and after the loan settle. That's why i add in extra 21mth of installment.
Your calculation between term loan and flexi loan already wrong and missleading from the beginning at post #109.
Just to clearify, Flexi loan doesn't save your INTEREST if one to one compare in this example,as you pay extra RM2401 for flexi loan.
But Flexi loan save your money by shorten your tenure.

If you can fully utilies flexi loan by using the flexi's current account as your normal saving account. Bank in your salary, your 6 months saving, and whatever cash flow you have, you even save/shorten more then what i've show in the calculation.

Well, as you said, it's your choice to be rich. If you think that term loan is better and will make you rich, that's your oppinion and your choice.
Well, the fact is clearly show in my calculation. smile.gif



Added on June 27, 2009, 12:13 pm
QUOTE(jasonhanjk @ Jun 27 2009, 09:41 AM)
If it's mis-leading, proof it with numbers.

Item 1.
Did you read the numbers?
The numbers that I provide indeed showed Flexi loan can save you in interest.

Item 2.
Your argument was flawed as you had not factor in amortization and interest compound.
*
-I already proof with my calculation

-Nope, your calculation is wrong. Flexi loan does not save more interest then term loan for this senario as in my calculation. But Flexi loan save money by shorten the tenure.

-Ya,But mine have it

This post has been edited by onnying88: Jun 27 2009, 12:19 PM
onnying88
post Jun 27 2009, 05:34 PM

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QUOTE(jasonhanjk @ Jun 27 2009, 01:42 PM)
I found my mistake and edit accordingly.
Please check.
Added on June 27, 2009, 2:02 pmJust in case someone wanted to match the cashflow, making sure each month payment to bank is the same every month:
Flexi loan:
Loan amount RM100k.
Tenure 319 months.
Rate BLR-1.6% or 3.95%.
RM10k put into flexi account for 319 months.
Total interest paid: $51,434.00 (from software)
Account maintenance: $3190.00
Interest earn for 10k cash: $0.00
Out going cash to bank for 319 months: $54,624.00
Term loan:
Loan amount RM100k.
Tenure 331 months.
Rate BLR-1.8% or 3.75%.
RM10k put into fix deposit for 331 months @ 2.5% rate pa.
Total interest paid: $60,622.78
Account maintenance: $0.00
Interest earn for 10k cash: $9760.43
Out going cash to bank after 331 months: $50,862.19
Result:
Flexi loan only saves interest about $9k but overall term loan is cheaper by $3761.81
*
Flexi loan you need to pay 319mth of installmeant
Term loan you need to pay 331mth of installment.
Different = 331-319 = 12mth
12mth x 485 = RM5820 who help you to pay this hmm.gif

As your calculation, should it be RM3761.81 (you save for the interest)- RM5820(you pay extra for the loan) = -RM2058.19 ???
onnying88
post Jun 27 2009, 05:56 PM

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QUOTE(sochaiapk @ Jun 27 2009, 05:39 PM)
It is you who got it all wrong . Bro SonyBravia  already said in his last post (#117)  that the loan can already be fully settled on instalment no.298. If he continues to pay $475 for another 21 months until month no.319, he would have RM10k debit balance in the flexi loan account which he can withdraw. The 10k is hard cold cash that he can take home. Your term loan account will only be settled fully on month no. 331 and that's it. Do you have the extra 10K to take out from the loan account at that time? The answer is NO!
Should i repeat the work OH MY GAWD for you ? doh.gif
*
I think you make a mistake too, he only use the interest earn from FD to minus the total interest paid to the loan.
So the RM10k is still in the hand smile.gif
But still, he make another mistake as i show in post#123 smile.gif
onnying88
post Aug 18 2009, 01:13 PM

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one of the important point to consider when choosing which flexi bank to apply, is to get the bank that is more convenience for you to access. If not, giving you better rate also give you less benefit. So it's better to get bank that is near to your house or office, if not you hardly enjoy the feature. As the more money you "in and out" in your flexi, the more interest you can save.
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