Guys, can I submit my ASB loan termination application to the bank now, or do I need to wait until next year to do it when ASB is open again?

Want to terminate not because of 5.5%, but because it is in my plan to terminate in 2020 - have been using ASB loan for my marriage fund, and getting married in in Oct 2020, so next year I don’t plan on paying the loan but saving the money on my own into ASB (since I need the liquidity of the fund to be available in Oct, and ASB liquidity is only in Jan 2021).

So trying to avoid having to pay the loan in January, would Maybank accept my application to terminate the loan now, or only in Jan?

Yes you can apply for the cancellation today, the bank will take its time to process before they send the request for cancellation with ASB and you will be competing with others next year

The redemption of the unit can only happen next year anyway, because as we  all know, ASB is under lockdown so you will be able to keep your distributions for December 2019.
To cancel all you need is to walk-in to the branch, tell the receptionist that you want to cancel your ASBF, it is not rocket science.

As per my reply above, even if you apply to cancel the financing, even if the banker is able to process the cancellation on their side and send a request for redemption with ASB, it will not happen until 2nd January 2020 the earliest - and you will be competing against other cancellers as well

Terminate has a few meanings:

a. you first apply for termination (banks will take about 2 weeks to 4 months to do their part, bankers are really substandard nowadays)
b. ASB redeems your units and return cash to your bank (may still need to pay the installment, especially if you have balance due to taking Takaful)
c. bank closes your account (no need to pay installments anymore)

As for your question, about termination in October, the customer will get the distributions for EVERY SINGLE MONTH there are funds in the account. So if by termination in October you actually mean (B) above (ASB redeems your units), then the person will get distributions for January till September, with October having nil due to the minimum balance being 0

Hope that answers your questions

Malaysia has too small a market, in 2018 ASB's NAV was RM180B, now it is bigger. They need to start looking into overseas market, not far, just Singapore will do as plenty of Fortune 500 companies listed there

Even EPF have opened up, out of necessities because their AUM is 500B. How can they generate good, steady income with 500B in Malaysia alone?

Hmm I was just thinking that we as Malaysians have failed ourselves, seeing all these money available to be pooled as big capital for our large scale business. I mean, only if we as group is as half of business savvy/minded as those China men.

Back to topic, I am not cancelling my ASB loan yet, I believe for those who have served their loans for several years already should not panic yet. But ya it is not a good news who just recently take up their loans.

Have successfully submitted my application to cancel both my ASB & ASB 2 loans today.

Need to give reason why want to terminate the loans, according to the bank officer, PNB wants a justification (wut? Cancelling my own loan also need to justify to PNB?).

From the officer’s reaction, a lot of people have been cancelling the loan.

Estimate takaful refund would be around RM 6k (RM 4k for ASB and RM 2k for ASB 2). Ignoring the principal, adding the RM 6k from takaful to the 5.5% dividend this year for ASB (ASB 2 will probably be around 4-5%, since it’s always lower than ASB) makes me a happy person.

Time to look at other investments. Probably going to buy a house since I’m getting married.

Does asb2 units are finished up? I want to topup but its saying insufficient unit available

But normally i can topup on sunday if iirc.. coz some states are operating on sunday.. correct me if wrong

Thanks bro. It's settled then. Made appointment with them tomorrow to sign off. Not sure how long it's been since I've refinanced so quite interesting how much are the capital kickbacks.

So... if the sijil stays with the banks and refinancing does not effect the 1 month distribution, then i would say theres no reason not to refinance every few years even if the rates are the same to get back your capital to be reinvested earning you more elsewhere instead of just sitting in the bank. Subject to the banks approval of course. And if the same branch don't allow, then chances are their other branch would offer. correct me if I'm wrong.

The bank in general might lose out by giving me this deal. But i think the branch is motivated to offer me the deal to boost the branch KPI in loan sales.

By the way, with my 45th birthday in august, am i eligible for 21 years or 20 years?

So, signed up for the new deal this morning. Served me coffee lagi. Even asked how I'd like it. "milk no sugar please ". Of course they'd be nice as I'm about to be 'shafted' by them and they are going to milk me for the next 21 years. God forbid the banks make money off of me!

Well anyways, here's the lowdown for those interested. Voncrane was right that I'm eligible for 21 years as MBB kira current age. So this reduces my repayment to RM -2 from what I'm paying now. So this alone, I save RM1,920.00

On the documents requirement, I had to follow my current structure of 4x100k as they said if I want to keep the sijil where it is, I cannot change this. (I wanted to change to 2x200k) So I sign 4x the same documents and pay 4x stamp duties. The stamp duty rates are the old cheaper rates. Still have to give my latest salary slip which to me doesn't make sense since they know I can afford from my records there but this is no biggie. Maybe they want to profile me with my latest salary. I will email to them when I get back to the office on Monday.

Here's the kicker, well for me anyways. Didn't realise that I haven't refinanced for so long (because of the 400k issue). So when I asked how much I'll get back, he told me RM 70k give or take! (i said 15k in my last post...lol) A nice surprise indeed. A sense of satisfaction that I get to take back my capital. So I can reinvest somewhere else rather than letting the bank keep my money. Now it'll work for me instead of for them.

So compounding this 70k by 5% over the next 20 years will be RM 185k which is a nett gain of an additional 115k! So this, plus the 2k I save on monthly repayments, netts me RM 117k minus stamp duties for this exercise. And I don't lose the 1 month distribution so no transition costs.

Not a bad move. 117k from practically zero costs! All this done in 15 minutes. 5 minutes signing the documents and 10 minutes chit chatting while they wait for me to finish my coffee!

Maybank. Maybe the installment is for month Jan, cos they already lowered the rate after dividend announcement. Husnudzon. Will check back with Maybank if still no changes.

I am not familiar with MBB for now since it has been about 2 years since they had the best ASBF product - they do not need to be, they are at the foreront of the Malaysian financing. I am not sure if they have changed the rules for the RM50 thing, other forummers that are on MBB can chip in

But even if the installments are not changed based, the extra repayment made will be considered as capital repayment, which means your tenure should automatically be shortened, that is how term financing works; which is a function of capital (loan), interest, and tenure which are used to calculate the installment. If the interests are lowered, but the installment is kept the same, then automatically more capital would be repaid each month thus the tenure would be reduced than original

What forms that I need to fill-in?

Any documentation that I should bring aside from my IC?

Question, if let's say approved before the latest opr rate announcement but haven't disbursed yet. Will it still be considered as existing loan to enjoy the reduced lower rate? Or considered as new application ?

Yeah Also, how does the opr instalment rm50 calculation count's?
I have 2 asbf certificate under the same bank. Does the reduction calculation count's as per certificate separately or the total loan amount?

Maybank adjusted their monthly payment every 3 month when there's a rate change/or amortization table, and they don't have "min rm50" rule.

Guys I have been away for a bit because I was enjoying my new car, but I have been bombarded with questions on my Whatsap so I am just going to answer them once and for all here:

1. When you are getting the "ASBF rate quotation" from your banker, don't just ask for the "rate". Bankers are generally dishonest, I know this because I was dishonest as a banker too, so they will quote "4.50%" which is the best rate in town.

2. That rate is for those who got their loans approved before the BR was changed, of which the product owner in the banks would change their [spread] to increase their profit margin

3. For example, RHB had an offer of BR + 1.00%:

a) before RHB BR was still at 3.75%, those who got their loans approved would enjoy an effective rate of 4.75%, which was pretty good at that time

b) Due to the recent OPR changes by BNM, banks would have to changed their BR too, otherwise they would face the scorn of their customers. Usually banks would change their  accordingly to the OPR changes

c) the product owners took a few days, but now they have increased their [spread]. Now if you were to go for RHB, their [spread] is +1.15%. To reillustrate:

- before BR changes was announced, their new applicants would be getting BR (RHB) + 1.00%
- after BR changes was announced, their new applicants would be getting BR (RHB) + 1.15%

4. So this means that if you had your loan APPROVED (not pre-approved because what the duck is that?) by the bank, you get to keep your BR + 1.00% which means your effective rate is NOW 4.50%

But if you just got your ASBF approved, your rate would be BR + 1.15%, which means your effective rate is NOW 4.65%. Not bad, but could have been better

5. Conclusion:

a) Padan muka to those who waited till now to apply, I have already told you that this would happen - that the banks' would increase the [spread] of their products.

b) I am sorry to those I wasn't able to help in time to "lock" the + 1.00% rates.

c) And good for those who go on board with me and are not enjoying effective rates of as low as 4.35%

I am the real deal, not some bullshit salesmen who are selling based solely on "best rates". There are tons of things to consider in personal financial planning. I am a bit pissed, that I just took delivery of the car yesterday (check the time stamp), and today my phone is exploding with messages asking me to explain about the rates, that I have already explained over and over again - which I do not mind, save for those product-pushers that are misleading everyone when they quote "4.50%" without breaking down the numbers

Final note: Ask those bankers that told you their rates are "4.50%" or whatever to provide proof in the form of the rate quotation. Get it in writing on your Whatsapp exchange with them - "Yes, sir, your rate is quoted as BR + 1.00%, and the current BR is 3.50%"

When your loan is disbursed and you got your letter offer ask to see it, and check the rate, if it is quoted other than "BR + 1.00" (which is what he promised) then you got ducked.

Anyway, this is the aforementioned car, a BMW G20 3 Series 330i, not an old F30, but the latest 3-series model G20, thanks for all your support:

If you notice the only one saying dividend will be higher is that insurance seller guy. Any sane person can see this year won't be a good year for asb

No need to panic la guys... If really happens then just terminate la... Get back the principal part of your loan. Thats the beauty of this asbf...

According to someone's calculations i read, even if you're not affected by Covid 19, you should go for moratorium.. since the interest charged according to reducing balance of that 6 months wont be as much as you can gain by other investment..

Save your monthly payment money elsewhere such as ASB2, ASB3, SSPN or TH

Now I’m confused 😔 where to check the interest calculation?

which back? if maybank, autopay automatically freezed

Hi. New user here.

I would like your opinions regarding my problem (out of topic from current discussion).

I took ASBF loan from HLB last 02/2019. I took RM200k for 30 years tenure + RM390.52 takaful for 5 years at the rate of 4.85%.

When I registered for the loan at the bank branch, I decided to pay the takaful as full upfront payment.

However, when I opened the bank app after the loan approval, I noticed the loan amount was RM200,390.52.

Shouldn't the loan amount would be only RM200,000 since I already fully paid the takaful?

At first, I thought the system was still not updated since my loan was still new at that time, but after a few months, the total loan amount was still RM200,390.52 until today.

I planned to make a query to the bank before, but I always forgot until recently.

So, recently, I asked the banker who was in charged with my loan regarding this matter. I was told that I haven't paid the takaful since I opted to finance it through monthly payment, and hence, the total loan is RM200,390.52.

I was also told by the banker that self-financed takaful was not allowed at that time. However, when I scrolled back our previous Whatsapp conversation from last year, it was clear that I was given by the banker 2 choices for the takaful payment options. Either full lump sum payment or monthly payment.

So, I was confused right now. If my memory served me right, I did make the full payment at the bank at that time. I have no receipt since the banker told me everything will be emailed to me including the loan certificate/loan approval letter. So, I did not insist on the receipt at that time.

Is it true that self-financed takaful was not allowed last year (February 2019)?

Was I being played by the banker?

Or

Is it me who were wrong here?

Any opinion?

Thank you.

I cannot trace back the transaction since I paid by cash. I clearly remembered bringing lots of cash in my wallet on that day since I already decided to pay upfront payment for the takaful.

Now, the banker kept insisting that I chose monthly payment and even showed the scanned document form. Regarding the form, I was stupid to sign a blank document at that time because I was in hurry.

I never see the completed form.

just checked my account, total dividend from ASB2 is RM15,560.

Meh.

Clear loss? how's that? Surely part of the 1050 instalments goes into principal as well.

I might just follow suit! Hehe... wait for asb3 this september.

with the share market on cheap sale, i'm gonna stockpile on cash rich counters. Companies with high liquidity that can survive this crisis without breaking a sweat. They are definitely undervalued right now.

Of course, risk management will still be in place. Only extra riskable funds will be used

Anyone on CIMB ASB financing? Looks like they debited my account for this month.. isn't it supposed to be the first month of moratorium? Hence no deduction??

their system will still autodebit until 10/4/2020. looks like they are not in time to reprogramme their system. people has been sharing this on fb/whatsapp last night to transfer out all of ur money from ur autodebit account is u have standing instruction with cimb which falls bfore 10/04/2020

It's Fixed rate. It was approved almost 9 years ago though.

Cimb already returned back the money. Quite fast.