i'm currently looking for a bank for housing loans and i'm not very sure about this housing loan. i heard different views from different people regarding the housing loan.take for example i've received a package from a bank and it is stated that the blr is -1.85% for every year. so each month my installment would be rm 1063.

the problem here is that one friend told me that 1063 is the amount i have to pay no more no less. another friend told me that there is a glitch in the calculation. he told me that there is a blr + the bank interest......confused please help.

Not sure wat u mean by no more no less, u can actually pay more as advanced payment to reduce interest charged on ur loan amount , and can also transfer the advanced payment to off set ur loan principal thru writting in.

if ur loan package is BLR-1.85% for the whole tenure, then the variable here is BLR fluctuation only. some other loan package might be BLR+0.15% , u might consider tht as "bank interest" but it's a loan package based on property projects, so not quite right to say it is bank interest.

TS, my advice to you is to listen to 2 groups of people:
1. bank loan officers
2. someone who currently has a housing loan

loan installments = interest + principal
pay more (with standing instructions), you can reduce your principal...
pay less, you will get late charge fees...

bank won't make mistakes... trust me...

Only fixed rate package will enable you to pay monthly installment that will never change. ING, AIA and Islamic bank provides this type of loan

sorry if that confused you. wat i meant by that is that if the package they showed me says its 1k permonth it means i just need to pay 1k permonth and it is up to me to pay that amount or more if i have the extra.

thanks for the advice. i'm getting conflicting views from my friends who have housing loan. one told me that i just need to pay the amount calculated by the bank and another one told me that the amount calculated was wrong. not by little bit but by quite a huge margin. his example was that blr 6.75% and + another 3.5% for bank interest. in the end he calculated up to 1.7k permonth.a difference of rm600 compared to the calculation given by the bank which is 6.75% blr-1.85% equivalent to 1k++ per month!

a few banks have also given me fixed rates packages. i think it is now quite common among all the banks.

Both your friends are calculating 2 diffrent loan packages. I guess you better listen to the bank officer.

dodgy way how one of your friend added another 3.5% of bank interest?
any idea where he got that value from? or based on what condition/assumption?

his calculation is based on his experience in buying house.

obviously he is very wrong in his calculation....

are you buying a completed property or under-construction property? Cuz my fren , worked as sales mortgage , and told me that, completed property or under-construction property have different interest rate . Blr = base lending rate = interest rate.

Under-construction property will get a lower interest rate during construction period.
Completed property , maybe u can get a better rate than the Blr-1.85%.

His loan could be inclusive of OD. Just refer back to the bank officer for accurate calculation. Your friends are confusing you and us

TS, can you ask you friend what interest is he adding?

looks like your friend is trying to max up the BLR or something...
or maybe adding MRTA/MLTA into the loan...

even if its OD, 3.5% is a lot... more than 50% of the BLR...

like what the other forummers say, check with your loan agent and alos ask your friend to clarify on his additional 3.5% experience...

yea... haven't heard of that additional 3.5% charge before...