This Time i really going 2 do sharing wit u guy about what i know on Extra payment on our housing Loan !!

Did u guy really believe the bank will put ur Extra payment to the Right Account ?

Did u guy believe the banker when they show their computer n tell the money u put really can save interest n tenure ?

Any borrower in this forum ever Do Principal Reduction to their loan Account ?

Did any 1 here can share their opinion ?

are u saying u don't save on interest when u reduce your principal.?

please explain why

I think it depends on your loan package/agreement.

But what is TS really trying to say here?

??? What are you trying to say?? Please eleborate.

i tot u say this time u r really going to share what u know ?
tell us pls......

1. yes.
2. yes.
3. yes.

btw, it's "Do" , not "Did".

All the bank got their on policy it depend what type of package u get !!

If your loan agreement Got Some sentence say Redrawing Facilities , "Vary Vary", Inverse oder of maturity if mean All the Extra payment will got into Advan Payment or go into 1 suspense Account !!

If People Do principal Reduction that mean maybe ur outstanding balance still got RM100k, In the end of the Year when u get ur Annual Bonus u put RM20k into ur loan account ... how do u think the bank will Arrange this money ? deduce the outstanding balance to Rm80k the Re-calculate the Interest ? is there any black and white given say this Rm20 save how many interest or tenure ? but the Rules of ( Principal Reduction is " Adjust Amount / Fixed Tenure)

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Added on January 19, 2008, 1:06 pmYes all is depend on bank and the Loan Agreement ..... Ask u Some thing 1st since 2006 - 2008 the BLR From
6% - 6.75% up 0.75% Rite ? and the banker got inform u to increase ur monthly payment ?

Example @

Monthly payment Rm1000

After the BLR increase 0.75% Maybe ur monthly payment Will increase to Rm1050

Where is the Rm50 ? is tat we ned to pay or not ? and without paying this Rm50 tat mean if our Tenure is 10 year
maybe it will take longer Rite ?

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Added on January 19, 2008, 1:11 pmIt is Quite surprise when i see ur answer Really !!!

Ok now we Discuss the 1st answer ... that mean u pay more Every month Rite !!
For Example @

Ur monthly payment is Rm 1600 and u will Pay RM2000 Rite ?

Where is the Rm400 Going ?

Can u answer me 1st ?

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Added on January 19, 2008, 1:18 pmThis topic is all about the monthly payment of the housing Loan given by the bank is accurate or not ? and if yes where is our Extra monthly payment going 2 arrange by the bank !!!!

Example @

Ur Accurate Monthly payment is Rm800
But since u Got Extra Money Every month u Will Pay more Rm200 tat mean got Extra Rm200 Rite ? where is this Rm200 going 2 arrange by the bank ? u understand what i mean ....

This post has been edited by MortgageOwner: Jan 19 2008, 01:18 PM

ermm..i dunno about other loans...but mine goes to reduce the principal. It will show in your bank statement wat...if u pay so much, how much principal reduced and all and interest charged on the remainings loo. U mean not all banks like that??

And when the BLR went up to 6.75, my bank did send statement telling me how much minimum i must pay. U mean other banks do not inform their clients?

This post has been edited by mIssfROGY: Jan 19 2008, 01:41 PM

You already got the answer, what the fuss of asking?

If really want to share information, then please post your knows, or your information.
Don't need to 'pusing' here, 'pusing' there.

Don't mean to discredit anything instead we always appreciate people that sharing information out there, just get straight to the point will do.

This post has been edited by cherroy: Jan 19 2008, 01:59 PM

this is the 2nd chance i m giving him after his 1st topic,i tried answer him directly n obviously he is trying to be a teacher by throwing more questions. i m done with this topic.

TS, i have answers to ur questions.

Typically a person who is opening a topic to share info n discuss will post everything in the post n ask all members to give opinion n ask question if there is anything he/she doesn't understand or disagree with.

This post has been edited by yewkhuay: Jan 19 2008, 08:08 PM

This is similar to typical sales person tactic, ask question then after that offer you something. I am not saying this thread is a one, just it is quite similar.

No disrespect to the TS, as if TS is willing to share information, it is welcomed and appreciated. Just forum here not allow referrals or making advertisement out of it.

Cheers.

This post has been edited by cherroy: Jan 19 2008, 04:23 PM

For your information, the best bank to get a loan is Citibank if u want to make extra payments. Local banks the worst ones..

You have to elaborate why Citi is the best............
I.e. compared against which bank, against which aspect........
If you're talking about rates, I don't think Citi's mortgage rate is that attractive.
But if you're talking about no monthly service/statement charges than yes.......IIRC they do not impose any monthly charge on their flexi account unlike SCB or HSBC.

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Added on January 20, 2008, 12:31 am<<<Did u guy really believe the bank will put ur Extra payment to the Right Account ?>>>
It all depends on which type of loan and what sort of agreement signed. Normally no; i.e. meaning to say the extra money would not go into advance repayment.

<<<Did u guy believe the banker when they show their computer n tell the money u put really can save interest n tenure ?>>>
Don't know what you meant.
But technically, If I don't believe in them, why should I believe in SUPEX?! I would personally do my own homework.


<<<Any borrower in this forum ever Do Principal Reduction to their loan Account ? >>>
I do not need to as I'm on flexi loan which I dragged the tenure and also get max loan. Why?...because I wanted a low monthly repayment. But my objective is to finish up in 10-15 years time. I checked the statement and also CCRIS to see how it was reflected in my account after I dumped in RM30k. And yes, it reduced my principal balance.
My friends father paid everything i.e. fully paid up the outstanding principal in 3 years time. After that, he never paid a single cent. Ooooppsss, yes....he needs to pay the monthly RM10 statement bill charge as the lock in period is 5 years. Thus he can't redeem the property yet so loosing the RM10 every month instead of high interest charged!

btw, If you want to help...you can try answer this thread in LYN too: Common Loan Questions, that you should ask/know

This post has been edited by b00n: Jan 20 2008, 12:31 AM

i am taking about Citi's product features. Rates fooreign banks wont be able to match local banks. That's for sure..

Gosh, pld do not go in riddle and just spill it out. Thanks...........

It's going into a conversation like this.

A: He's good.
B: Pls explain.
A: Oh, he's in good shape.
B: So, why good shape equates to good?
A: He can carry weights...
.........and the conversation goes on...........

Same as TS, always beating around the bush.

This post has been edited by b00n: Jan 20 2008, 02:24 AM

TS has once again failed me, he never return to reply any posts...

Citibank is good because:
1. Real flexi homeloan with daily rest, you get checkbook but make sure they are tied together (it's not automatically done)
2. Loan up to RM500k will entitle you to the CitiGold status (privileges, better rates, services, platinum CC)
3. Their online banking services is good (prompt and almost realtime status update)
4. Bill payment, easy. Fund transfer, fees only RM0.50 per transaction. Compared to Maybank which charge RM2-RM4 per transaction.
5. They will not look at your other commitments at other banks for their approval consideration, so you have a clean slate with them. (maybe it's not a good thing )

Citibank is NOT good because:
1. Their BLR is higher than the rest, 6.80% compared to 6.75%. Make sure you know this!
2. Hassle to bank in the monthly payment.
3. Longer lock-in period and higher penalty for early redemption.
4. WORST OF ALL...explanation below

I scouted around some time ago and since then I've used Citibank as benchmark; anything better than them is good, and vice versa.

From there currently there are many comparably featured home loan, and so far the one that I like is Stanchart.

Why? It has all the benefits of Citibank (never tried their online banking before though), and the following compared to Citibank's cons:
1. BLR is same as other banks (Except Citi of course)
2. Hassle still the same (not many branches)
3. Shorter lock-in period and lower penalty
4. This needs an example, as below:

Scenario:
Assuming you have RM200k loan, and the monthly payment is RM1400. Say it's RM1100 for the interest and RM300 for principle. Imagine you put in extra payment, making the total for a particular month RM2000. This effectively reduce the principle by RM600, so the interest will be calculated based on the reduced principle (make sure the flexiloan you get is on principle reducing basis, not interest reducing basis). Still with me so far? Good.

Now, let's assume you put in the whole RM200k in. And I know many ppl do this (they park their money to reduce the principle while waiting for good investment opportunities). What is the effective interest payment? zero? actually it is . But what I want to highlight is, for Citibank, they will keep deducting RM1400 from the excess fund, although all will go towards principle. While for Stanchart, they only deduct RM300 monthly. So for Citi, you get your tenure shortened, but fund depleting faster. For Stanchart, they keep the 30 years tenure, so you have more cash.

Good or bad, it depends on the person. For me, it's definitely bad as I want to have cash ready wen I want it, and not at an alarmingly fast-reducing pace.

The examples are for the 2 banks. I have homeloans with mostly foreign banks, so a lot of the quirks which were not mentioned in the loan doc (or vaguely so) will surface later on, and it's usually to the bank's advantage.

2. Hassle still the same (not many branches)


haha, at least much much more branches than citibank, citibank have only 4 branches in malaysia, SCB have more than 30 branches

hi every1 here,

In fact the different packages from different banks are not applicable for same case, normally it's all depend on the Loan agreement u signed..

Basically for term loan, the extra payment will be counted into advance payment instead of extra prepayment if u do not notice the bank.. Well for flexi loan, u can always make extra payment to reduce the principal..

Daily rest calculation is one of the ways to let u reduce your interest paid to the bank.. But only for some banks that offer flexi packages.. But there's another way to reduce your interest.. That depends on what bank u are using and wat is the payment method for the package..

If anyone here wants to know how to save your interest or pay less for your mortgage, please feel free to go to my thread to know more. No hanky panky here. Will be willing to let you all know how you can save.

SUPEX MORTGAGE IS NOT A SOLUTION FOR FLEXI LOAN FOR SURE!!!

I would like to remind everyone here. For those who is using Term Loan, SUPEX might help.

I'm using SC Mortgage1 loan. So far the only bad point about flexi loan is Higher INTEREST!!! BLR + XX.

For my case, there is no concern since in interest is more than 4%, my company will subsidise the rest of all. If BLR=8%, my company will pay 50% of interest charged for me.

However, 1 simple question which SUPEX MORTGAGE consultant all can't answer here is:

1. If my monthly installment is RM1k and I pay RM2k every month to my account (assume BLR is fix), how long I can finish my payment? If you use a normal loan calculator, a double payment of your required payment will indeed reduce your years to half!

2. If SC Consolidated Statement is a +ve value, will there by any interest charged?

3. Flexi Loan is just like a Overdraft account, if you take out extra payment, OF COURSE YOU WILL BE CHARGED INTEREST! Where got FREE OVERDRAFT in this world? So if put in Extra $, that's it...... If you take out, REMEMBER, INTEREST RATE IS BLR ( Still cheaper than Credit card for those CARD SLAVE).

4. Flexi Loan calculate based on your -VE value. Which means how much you owe the bank at the current Month(or DAY), of course how much interest you are charged. Simple mathematic, I'm not sure why people doesn't make sense about it.

5. If your account is a +ve Value, you can terminate the account anytime (More than 5 years no penalty). So once you terminate the account, of course your loan finish. Because you already END THE FACILITY.

6. Normally SUPEX member pandai. They ask you to request an "EARLY SETTLEMENT STATEMENT". Early settlement will always follow the calculation of TERM LOAN. Hence your EXTRA PREPAYMENT will not be calculated. HOWEVER, they will return you the $. Beware, EARLY SETTLEMENT and +VE account in your Condolidated STATEMENT is different. EARLY SETTLEMENT is something you wanna do with Refinancing or EPF. Positive Consolidated Statement means if you have a CASH youself and debit into the account, and at the end BANK OWE you $ not you owe Bank $ anymore.

7. My advise here is, don't simply do any Refinancing unless you get a very good interest (FIX INTEREST, maybe 4%) for the whole loan TERM.