Hi all, am buying a house still in construction this year. which home loan to go for?? planning to loan 200k for 15 years. thanks!

There are generally 2 type of loan - flexi and basic. The flexi one has higher interest but has flexibility to withdraw your excess payment. The excess payment can be used to reduce the amount of interest you need to pay. The basic one has lower interest but less flexible. It is a pure loan. It really depends on which one suit you the best. There are pros and cons. Whether it belongs to which bank, I personally think they're around the same. As long as the bank is easy for me to make payment, I will go for that bank. Hope it helps.

i suggest ING or AIA fix loan at 5.99 or 5.75 ... not sure what the rate is now.

i suggest bank islam/bank rakyat

but better choise public bank low interest

A friend of mine who is a manager working in Public Bank once said to me, which ever housing loan you take is the same. In the end you are paying almost the same amount. Bank personnel will help you choose the housing loan suits your payment method

This post has been edited by knwong: Mar 25 2008, 05:32 PM

Pls choose loan frm BANK rather than insurance like ING or AIA. It will definitely save u frm trouble such as imposed of interest on late charges which few friends of mine kena with loan frm them. Just my 2 cents ya

Bank also imposed the same condition for late payments.

Anyway, TS, why you go for 15 year loan when you can get 30 years?

This post has been edited by cuebiz: Mar 26 2008, 12:19 AM

i just got my loan approve from Public Bank,for Non Free moving cost, they offer me first year 0% and BLR-1.90% for whole tenure.

ya, of coz. but d percentage for a bank is not that high compare to the other one.
better yet get a international bank, although their rate might not b attractive enough but d percentage u will impose on interest is very very low.
anyway get a panel financier with your developer, more safe.
TS want 15y kau tim ma. It's give u better rate if u r taking those conventional loan.

it getting better nowadays.. back few years back.. most of the loan is with blr+xx.. mine still BLR+0.5.. wow.. now .. ambank offer me BLR-2.0%.. with current blr at 6.75.. with that interest u paid only 4.75..

my question..

islamic banking offer me 7.75% flat rate.. do you it ok?? i don't think so.. can BLR up again to 8-10% in future?

I prefer Flexi loan because if you are a ambitious person and your career grow with you along with your income. Flexi is best as you can clear the loan faster and thus save up unnescessary interest for the long turn. Those save up interest money can be as much as more than 10K. Imagine with this amount you can invest in other place.

Bank will like you to take basic loan because rate is fixed and you are basically a feeder for the bank for 30 years (As they recommend). Steady income for bank like loan shark. 300K house will end up 600K total payment when you finish the loan. Cause interest for 30 years! Looking back when you are old, you will know you are being ripped off. Take calculator slowly calculate the interest for 30 years then you know.

Correct me if i m wrong, someone told me bank only charge interest on the amount loan that you utilise, not the full loan, just in case you are able to settle your loan faster, the outstanding interest will sorta be waive. For simplicity sake, let say you take up a loan RM100k and your interest also RM100k which make it in total rm200k. But if you manage to pay up the RM100k principal amount half way thru the loan tenure, then they will waive certain amount of the interest. Don't know true or not, as I am still searching for the answer too. Maybe someone more knowledgeable about loan can help on this matter.

This post has been edited by Tohsan: Mar 27 2008, 04:02 PM

As I mentioned, this is the Flexi loan package lo....

now HLB also the same rate right? got cash back 10% somemore

Anybody using HSBC's homesmart loan? Any pros and cons about this package?

the house loan interest is based on the reducing balance..

so u pay off fast u save more money on interest...

diff than car loan which is fixed interest, so not point to pay off fast cos u really save abit onli...

wow, that's a really good offer. were u hard on the negotiating table? or izzit a standard package?

i went to hsbc (semenyih branch) to ask about their homesmart loans. unfortunately, the executive was very junior, could not explain very well, some important terms also don't know (e.g. first drawdown).

This post has been edited by azfamy: Apr 15 2008, 04:03 PM