Depends on your objective and preferences.

The yellow bank financing comes with takaful. So if it is for the long term savings, it doesn't hurt to pay a little extra for it since during early years you will only be paying for the takaful,

Plus, if you have separate financing, you have the option terminate it separately.

But if you have short term goals and going for maximum returns, it is better to terminate your current financing and apply a new one with the lower profit rate and without takaful.

If you want to apply with CIMB, I recommend you apply for at least RM50K financing since you will be able to enjoy the promo rate 4.8%

For RM 50K financing with 30 years tenure. Monthly is around RM 263 without takaful.

If you want to pay RM300 monthly, apply for RM 57K financing. It will be RM 299.06 montly.

Honestly, I'm not sure. You can try ask BSN directly or if there is any people here can confirm this?

Congrats bro. One step closer to Financial Freedom.

If you don't mind, your dividend is from ASB Financing or just regular ASB savings?

They also offer 4.8% but for at least RM 70K financing iinm.

You can call ASNB directly and inquire for it.

When do you start your ASBF?

Then you have to just bear with it. Since you have to pay extra if you want to terminate it.

Dividend and bonus earned doesn't count into the 200K quota.

Yes, I'm pretty sure. Else it is not possible to have more than 200K in ASB.

When your principal value is less than the sijil ASB value. Because you will started paying for takaful first then only the sijil.

Because when you do it the financing way, you can earn more compared to invest with your own cash. Keyword "leverage"

In case you interested to apply with CIMB bank, feel free to let me know.

If you want to take percentage difference, it can't be do it in that way. And I don't prefer to calculate in that way too cause it can be quite confusing.

Let me show you some example. Warning, it may be a little bit technical.

Taking into account:

Cash in hands: RM 14,000
ASB dividend 7%
ASB2 dividend: 6.50%
Financing rate: 5.2%
Financing tenure: 30 years
Monthly payment: RM 1,100

Planning for 5 years;

Method 1: Let cash RM 14,000 compounding in ASB
Using compound interest calculator, after 5 years you will get RM 19,600 total money in hand.

Method 2: Use RM 13,200 to make ASB2 Financing rolling technique.
Annual dividend: RM 13,000
Cost of financing per year: RM 13,200
Dividend is not enough to cover 1 year financing payment, so have to add RM 200 every year for 4 years.

After 5th year, terminate ASB2F;
Final year dividend: RM 13,000
Princial returned: RM 15,800
Total Money in hand: RM 28,800.

Let me know if there anything I miss, since I wrote this in a hurry.

You can always reverse the opportunity cost by terminating your financing.

On the other hand, some people commit to ASBF to save up for the downpayment anyway.

For CIMB, no lock in period. But personally, I recommend to commit at least 1 year. So that you will earn the dividend. Else, there is no point in doing ASBF.

Why you wanted to reduce the loan instead of putting it in ASB2? I'm not sure what is your plan and your constraint.

Based on my logical assumptions, of course putting the cash in ASB2 will give you more returns.

How old is your LASB? Do you know it's current principal value? Does it include takaful? How much is your LASB value?

I believe it is still a reasonable profit rather than the hassle to reduce your financing amount.

Of course there is a lot of investment instruments out there. Smart people leverage the financing to build up capital for other investments. That is what I usually advise my client.

Why would you invest your cash in ASB when Unit Trust can simply give you more than that? Or maybe can just invest in property. Yes, higher risk higher returns.

But this is kinda off-topic since this thread is mainly for ASB Financing/Loan.

If you don't opt for takaful then you will not have shortfall which means you have to pay more to to terminate.

But usually LASB have lock in period? The one without lock-in period is ASB Financing since it is Islamic. You need to verify with your bank first.

If everything is alright and you decided to terminate it, you will save RM 12.15 more every month for that 0.2% difference. But you have the risk of losing 1 month dividend if your application is delayed. Is it worth it? Your call.

On the other hand, you will have more advantage if you have separate financing since you can terminate them separately later. But if that is not your concern, then it's okay.

One more things to add is that you will gain more cash when you terminate as you will get the principal returned and use it to invest more.

Just make sure that you don't have lock in period with the existing loan.

If you are interested to apply ASBF with CIMB at 4.8%, feel free to let me know.

Why do want to terminate your ASBF? And what do you mean by 'best'?

If you mean you want to terminate without paying more, then wait until your loan principle is less than your sijil ASB value.