Going forward, when you want to refinance the ASB loan or a mortgage, I would recommend skipping the bank-attached insurances. The problem with these policies is that they are absolute-assigned to the banks


So in the event that you choose to close your ASB financing account with CIMB for example, the Sunlife policy with be force-sold by CIMB and you wont be able to keep the policy for future financing application

Haziq.

Can you explain the cash value as per the nunbers below?

For exmaple if the policy is terminated in the 1st, 5th, and 8th year for example, how much will the client get back from Sunlife?



This post has been edited by wild_card_my: Sep 4 2018, 10:47 AM

A few things you missed out, there are values associated with terminating financing at higher rates. While it may not be ideal to do so, the idea is to not incur higher rates at the spread going forward a few years. The best way to avoid this is to listen to proper advice to avoid taking ARTA in the first place. Refinancing still has its merit especially when the difference between your current financing and the market rate is higher than a certain figure. Can't say you could see this given that you don't even know the difference between cost of insurance and premium/contribution. You tried to entrap but it blew up in your face.

Go on, continue to chide. I've proven you wrong over and over again and enjoy calling you out. Your advice earlier about giving out promotion could have gotten people out of their jobs if caught. Like I said, you are in this for fun and game with zero repercussions to you on your posts.

Unlikely, at least based on . I have only done a few stints of credit card sales when I was an RM, but we would generally look into your fixed income plus commissions, and would consider your type of jobs as well - for example if you were an insurance agent of real estate negotiator, they would be inclined to look into these variable commissions, more so than someone who works as an engineer but earns real estate commissions on the side.

Yes, ASB dividend can be used as income for mortgage applications. I am not sure about it for CC. For fast approval, they will look at your EPF alone, but there are people who would need to apply "manually" in the sense where the application is submitted manually with your supporting documents and all - this will take time but the credit controller will be able to go through all your income and not just the ones stated in the EPF. This is a little beyond me, but I am sure a banker may help you with this, even perhaps for an application.

Thanks for sharing. Pledging for FD happens in mortgages as well. They give 3% returns but the mortgages are 4.5%. Crazy isn't it, why not just use the money to top up the purchase of the house and avoid the 4.5% p.a. of the short fall?

But after pondering for a while, I realized something. You don't have to pledge forever, usually 1 year will do (for mortgages). Following which you can reinvest the money into higher return accounts (higher than the mortgage's 4.5% I hope)

Bank's hotlines are the WORST for product enquiries... they know some surface-level information but when you ask something specific they will have to say something inline of "we will get back to you on this". usually when I have banking enquiries, Ill just ask the people that are doing those products. For example, if need info for hire-purchase, Ill just ask the sales people for HP bankers and ask away.

This post has been edited by wild_card_my: Sep 5 2018, 11:40 AM

Oh they would cancel the CC if you stop investing your money into their FD? That is super lame.

Hurm. On the other hand, I know people who have business loans are given CC for free. Problem is, for this story, the CC and business loan was attached to Bank Islam. BIMB forgot to mention to the Chinese business owner that the CC is no-good for use in non-halal places. So this fella brought his friends/partners/clients to a non-halal place to belanja, and upon payment, the card got declined. Drop water face.

Also, for the mortgage-FD pledging, hardly that the bank would cancel the mortgage, I do not think it was linked in that sense. Not too sure about CC though.

Sorry going tangent, we really should go back to ASB discussion although this is somewhat related (wanted to know if ASB dividend can be used to supplement income for CC application)

I have quota for ASB2 financing. 4.85% p.a. Let me know

Not necessarily. I have personally done mortgage cases where the pledging was only for 1 or 2 years. I did the mortgage, but the client had to go to the bank and do the FD pledging. It doesn't make sense for the FD to stay there for all the 35 years of a mortgage tenure. There isn't any needs to threaten the bank, as long as you know your rights and what you have got yourself in to before signing on the dotted lines.

Yes you could. Apply first, then wait for the quota to be opened for that bank, in this case it is MBB, at 4.9% for RM100,000 loan

Another bank has quota fully opened, 4.85% p.a

Loan that is approved will be available for a while, and it will be disbursed as the quota is available. You would not be paying any installments until the money is disbursed

This post has been edited by wild_card_my: Sep 7 2018, 08:42 AM

The financing auto-cancels. In that sense, "nothing" happens. There would be records of application and acceptance in the CCRIS, but it will not be be shown as disbursed. Then you can reapply to get back into the queue. You can do so with the same bank or other banks. These are a few concerns pertaining to the auto-cancellation and queue:

1. The bank cannot hold the financing for too long because they need the fund for other things (like mortgages, HP, rolling, etc.)

2. The quota is determined by the market and ASNB; when the public redeem their financed units and when ASNB decide how much of the units are to be opened; this process and limitation are beyond the purview of the banks, we can just wait and see.

This post has been edited by wild_card_my: Sep 7 2018, 10:03 AM

I do not remember. I need to check on this. The usual payable fees are RM50 for the endorsement from ASNB and RM10 for stamping.

But I will have to get to you on this, that is in the event that the financing is auto-withdrawn, would these fees still be payable. I need to verify this to avoid any misunderstanding

This is from my partner in MBB. Use this info with a grain of salt, because I want you to verify this with MBB officer upon application as well.

Just to clear things up:

Some banks are able do refinancing ala-refinancing of properties. This is advantageous because:

1. you DO NOT need to cancel your current financing until the new financing is approved
2. you will now be able to time the redemption of units from the old financing to happen very closely to each other to avoid losing more than 1 month's worth of dividend (no guarantees from my side though)
3. Obviously, the refinancing is done so you can enjoy lower interest rates than the ones you are currently paying for

The current best rate is 4.85% with short-term and half-amount insurance cover, and 4.9% without any insurance taken-up

Just thought that I'd let everyone know that we have discussed privately and would be dialing down the intensity of our exchanges and to avoid personal attacks. Discussions related to ASB and its financing will continue, but with more civility in them. Lets keep the mods out of this.

Good afternoon

1. This is Islamic loan, with Islamic loans, everything has to be "clear" - well to some extent. It means the maximum amount that you would have to pay in the next 25 years is clear. This amount is calculated based on the 10.6% p.a capping/ceiling as per the LO

2. This figure would not change because whatever changes made to MBB's KPA (English: Base Financing Rate) would still make your effective rate lower than the 10.6% capping mentioned above. Your rate is quoted as KPA - 1.65%, with MBB's KPA at 6.9%, your effective rate is currently 5.25%

3. If you need to verify what I said, take a "loan/mortgage calculator" (I recommend this one) and key in RM51,072, 10.6%, 25 years) and the total payment will be RM145k. Any deviations visible are due to the differences of actual dates of the financing, internal interest rate that may be lower than presented, and other factors that are not presently mentioned in the LO.

4. You are currently paying 5.25% p.a. and not 10.6% p.a. It will very UNLIKELY for you to end up paying RM145k in total because in the past 5 years, you have been paying your installments based on rates lower than 10.6% p.a, so even if suddenly the OPR is increased by BNM and MBB responds by increasing the BFR in tandem, and you start paying at the max 10.6% p.a rate, you would still NOT end up paying anywhere close to 145k in total.

This can be a little much especially when I do not get to explain it in person with pen and paper, but I hope you get the idea. As mentioned, you are paying 5.25% p.a, while the best rate available is 4.85% p.a now - and so I might add that it may be high time to refinance to get better rates

This post has been edited by wild_card_my: Sep 11 2018, 12:52 PM

This is not the right place to discuss housing loans.

https://forum.lowyat.net/topic/2759418/latest
https://forum.lowyat.net/topic/3437581/latest

But just a quick one: RM100k loans can be entertained by the banks although admittedly some bankers may not want to layan because of the paltry amount. The basic salary of RM2.5k should be enough, as long as you do not have too much outstanding commitment.

You are welcome to register at my talk this weekend to get a basic grasp of property financing

Effective rate.

Most reducing balance loans in Malaysia are now based on a variable rate. To calculate the effective rate for this, you will be quoted something like this: BR + [spread]

BR is the bank's individual Base Rate (BR) or Islamic Base Rate (iBR). These number are unique to every bank and changes every 3 months, if any. The spread is fixed throughout your loan tenure.

Your Effective Rate is calculated as: BR + [spread]

So when I said, the best rate in the market is 4.85%, it could be a BR (4.0%) + 0.85% or BR (3.2%) + 1.65%; both of which equates to 4.85% which is what matters

I do Hong Leong, among other things. Which is how I always get access to the best rates for my clients.

4.85% is the lowest rate, which I believe is the lowest rate in the market, need RM50,000 application at the minimum

Proof of 4.85%



This post has been edited by wild_card_my: Sep 19 2018, 11:16 AM

Minimal takaful required. 50% of the loan amount, and only 5 years. For this lady above, her takaful was only for RM300... when added in the monthly payment is still lower than without insurance

The choice is still yours though. Without insurance, the rate is 4.9%, which is still the lowest in the market without insurance

Yes, if the settlement is made as per 17/10/2017. Different dates will have different settlement amount, as your interest accrue dailly (daily rest)

For any questions related to the difference between "Oustanding selling price" and the "OS financing amount", as per any reducing balance loans, you do not pay the interest that you do not accrue.

Erm, the best rate you can get for RM200,000 loan is 4.85% with takaful, of about RM400 one-time premium, at 30 years the installment is only RM1058/month.

Well I am the best man to approach if you cannot go to the bank because I do door-to-door.

Oh right. OKay, given eveyrthing else is fixed as per my previous post...

For 22 years, it is 1236/m

For 23 years, it is 1206/m

So I guess, you could opt for 23 years, at RM200,400 financing. When you redeem your units from the current bank, you would still get to keep:

1. the difference between the RM200k capital vs the loan outstanding

2. the dividends earned

This post has been edited by wild_card_my: Sep 25 2018, 09:58 AM

There are 2 situations:

1. You have not maximized the RM200k certificate (loan) quota. For example, you have 100k with bank A, and would like to refinance only the 100k with bank B. Apply for bank B, and once approved and disbursed, close bank A. If disbursement (bank B) happens after redemption (bank A) within the same month, the monthly minimum balance for that particular month would remain at RM100k, at no loss of dividend.

2. You have maximized the RM200k certificate (loan) quota. In this case, you would lose 1 month's dividend because redemption (bank A) has to happen before disbursement (bank B), so the monthly minimum balance for the particular month would be RM0.


This post has been edited by wild_card_my: Sep 27 2018, 09:32 AM