Amount eligible = 200k - Total Current Balance excluding Dividend and Bonus

And do take note that loan must be in the amount of 1000's

Edit: Amount eligible is exclusive of Dividend and Bonus. Sorry for my mistake.

This post has been edited by Ronald K.: Jan 8 2018, 09:15 AM

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

Oh really. From what I have spoken to PNB, they are counted tho. Will have to reconfirm with them.

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

How much cost to terminate now and when is the best time to terminate and reapply without cost?

Should be not counted. Only count non bonus/dividend cash injection

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

Have some extra cash.

Question:

When ASB2 dividen is lower than ASB1, why should we go there? What if we reduce ASBf to inject cash into ASB instead?

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.

Regular saving. Can't get loan due to limit burst. House loan kick in. Will apply back once car loan settled

Thanks bro

You earn 1% - 2% with loan. But get 7.25% with your own cash.

say ASBf : 2%
+
ASB2 (cash): 6.25% (or something)
=
8.25%

Compared to all in ASB (cash): 7.25% .. That's 1% difference. Hmm..


Thanks, but I already max my loan.

1% difference not enough to make the call.
Once your committed to ASB/ ASB2 loans, your opportunity cost is mortgage/ personal/ car loan.

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.

any lock in period?

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.

I'm not talking about ASB2 financing. I'm talking about whether to put cash in ASB1 (reduce loan), or to put in ASB2.

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.

Dont reduce the loan. Better to put in ASB2. Because you'll earns both dividend

That means I have to take out the dividend before I can add in another loan?

Sorry my bad, you don’t have to. Dividend and bonus are not counted.