Hi all. My CIMB banker told me there is a new promotion for ASBf now with 4.8% interest if you pair with min RM1000 in UT investment. Looks like a good deal for me. Any other bank doing the same?

I just did another 200k ASB loan early this month hmmm.

Usually how long does it take for cimb to disburse the money? If today sign document, before 28 feb can disburse?

nope it takes 3-4 weeks to disburse...

1 mac is the last day to get the dividend for Mac, right?

Some took the asb loan had cancelled it as the dividend cannot sustain the interest of asb loan. Hmmm ? Anyone hear this ?

Some took the asb loan had cancelled it as the dividend cannot sustain the interest of asb loan. Hmmm ? Anyone hear this ?

@Haziq

Thanks for the clarification.
But I think the pros are still more than the cons. We are getting 4.8% instead of the normally given 5.0%. Thats 0.2% discount. If for example I take 100k loan that easily translate to around RM200 saving per year. If I plan to hold for at least 3 years (which is the min to get some decent return) then the saving will be even bigger.
So I believe RM1000 is really nothing compared to the saving in interest rate that I can get especially if I am planning to hold for long to medium term. This is a no brainer choice for me even with the UT risk.
But of course if other bank can offer similar low rates without the UT pairing requirement then that would be even better and should be our first choice. Lowest interest rate is my priority especially since the return from ASB is getting lower and lower.

Hi There... Millennials don't usually think bout the future. They live in the Now. So I'd say you're a rare breed! lol

5.65%? wow! with the dividends @ 6.75% this year, you earned only 1.1%.... You need to change this. Pronto. That's why terminating and reaaplying is so important, if only to keep up with the most competitive rates, let alone the amortisation kickback. 

Here's what I would do. Walk into any bank, ask to see the officer for ASB loans. Ask him/her whether you will be eligible for the max loan. Be honest with your history. Let them do their background checking and come back to you. If no, look elsewhere. But I have a feeling that they will accommodate given your recent history. Problem 1 solved!

If they do, terminate and re-apply as soon as you can. You should be looking at an IR of 5% and a monthly payment of about 1k and a bit with a max loan of 200k and max tenure of 30 years. You mentioned that you pay 80% - 90% from your salary which means your'e about 140 - 280 short every month. Well with this new loan, you should have no trouble at all paying 100% from your salary since it's about 300 less than what you are currently paying. Problem 2 solved!
Some questions about your calculation above.

(2007 - 2016) = 9 years. 25 year loan means you have 16 years left. By my very simple calculation, assuming we start fresh from now with your current loan and you only have 200k sijil loan with no cash dividends in there:-

After 16 years, you'd have RM 590k (compounded from 200k @ 7%)
Total payment made : 1440 x 12 x 16 = 276k
Gain : 314k (adjust for inflation at your will)

It's still a decent gain from 16 years. But if you terminate and reapply, after 16 years, you gain will be 380k (before inflation)

All the above is well and good where we have an endpoint and we know where we are after X number of years. We would know how much we have in our bank accounts. But that's not the point of all our previous discussions here.

I go into these loans with no end in sight. I don't even care how long i've paid and how many more years i have left to pay. I'm in this for maximising capital and utilising other people's money for my gain. And compounding interest is what makes all of this work. If you're employing the terminate and reapply strategy, your loan will always be at max tenure.

From a humble single 200k loan 15 odd years ago when I was 25 years old, earning 14k dividends per year, i'm now earning dividends from 1M of about 70k per year @ 7%. 600k loan with ASB & ASB2 and 400k cash in ASB, ASB2 & ASD. Not a single cent of my own money was injected other than the loan repayments and earnings from the dividends. From 1.2k per month installment for the first 200k loan back then to 3.5k installment for the 600k loan now. Here's the kicker.... after 15 years of loan, i still have about 27 years left to pay..... I THINK! I've now reached 40 and i can't take max tenure anymore, thus making my monthly repayments a little higher. Still calculating whether it's still worthwhile to terminate and reaaply. But that's a discussion for old people! lol

That's why i said before, you have youth on your side and there is an opportunity cost the longer you wait.

So to recap, 70k per year... just to put that into perspective is 140k every 2 years. Assuming I let this 1M compound for the next 10 years, it will be 2M (@ 7% dividend) that's a gain of 1M in 10 years! Just to put things into perspective again, it took me 10 years of compounding dividend to get 200k cash from the first 200k loan. Now, due to the magic of compounding interest, that same 10 years earns me 1M!

Now let's say disaster strike and for some reason, I can't pay off the loan anymore. I'd terminate everything. No questions asked and no further payments need to be made. If I do it now, I'd have 400k cash. If I do it in 10 years i'd have 1.4M cash. Hopefully this will be enough for my retirement earning me 98k per year, i.e 8k per month and....peace of mind.

So forget the past, start fresh from here. the sooner the better.

Hi, i am new to this thread and 28yo this year. I just apply CIMB 200k ASBF for 30 years with RM1073 per month after 2 years of working to save emergency fund of 6 month. I am planning to terminate the loan after 3 years and repeat the process again later.

Hopefully i can follow buggie path to achieve financial freedom