guys, i'm not clear how bank determine asb dividend as an income.

let say I have 100k asbf, with 7% will get 7k dividend.
1) so to qualify as income, the dividend must stay inside asb account?
2) will the bank look into amount available asb saving?
3) if I take out the dividend (either a portion or all of it), will it still be considered as income?

thanks.

Ultimately it is better if you invest your own money into ASB. But not everyone has the capital for this.

The bank loan means the BANK takes up MOST of the returns from your ASB. ASB has very generous returns and the bank is fully aware of this and wants to use YOU for their own gain.

There's a monthly payment for your ASB loan that's supposed to be covered by the dividends from your ASB. There's an issue of timing (cash in, cash out) and certain inconveniences mean you might have to rely on a standing instruction to pay the monthly amount. At the end of the day, the returns are very minimal to you vs. if you were to invest your own RM200K (and again, very few have this kind of capital to invest).

Hi, you can check my ASB calculations. However, ASB was changed their bonus calculation from 120mths to 12mths now. So, I did manage to edit the bonus calculation method back to 12mths in my excel.

ASB Loan

1) so to qualify as income, the dividend must stay inside asb account?
Dividend must stay inside asb account because it is cumulative. You only begin to earn back your loss at 5th year. For best results, just put as long as you can. Put for 20-30 years as your pension.

2) will the bank look into amount available asb saving?
If you loan only 100k, then you still have another available 100k for saving. So you have to pay loan to bank, at the same time you also can buy another 100k units through myasnb portal. You can check your ASB financial report to confirm how much available units you still can buy. I not sure how does bank works but for mine, bank is just treated like personal loan. I not sure what will bank do if we not able to pay the loan to bank since mine is just autodebit from my bank account every month.


3) if I take out the dividend (either a portion or all of it), will it still be considered as income?
Probably you will get loss because of the loan that you were paid per month is higher than the average monthly dividend that you earn. Dividend is profitable only based on cumulative, you can check my excel to understand how does cumulative works. I'm hard to explain it out. ASB loan basis is only profitable for long term investment. After you check my excel, you will understand why you can't earn profit if you keep take out your dividend to repay your loan. If you keep withdraw the dividend out every year, probably RM200k with 20 years of loan, you only can get RM170k and loss RM30k after offset the asb dividend with your RM200k loan interest. If you can afford to pay the loan, just pay with your own money but please don't withdraw the dividend from ASB. You can check my excel, after 20 years you may earn RM600k~700k profit (after deduct RM200K loan and RM100k+ interest).


This post has been edited by junclj: Apr 3 2018, 03:53 PM

What if i tell u..u can make 110% profit in five years time by using asb financing rather than normal saving..not everyone have the capital to dump in 100k or 200k in their account..example..if u make 200k loans and interest rate at 5.2% take it to 30years..u have to spent 1100 permonth..times by 12month..u spent 13200 per year..taking count the lowest divident at 6.75% u will get 13500 divident per year..if rolled the divident to pay for 2nd year and maintain until 5th year..u will get 30500 if u surrender the certicate by only spent 13200 the first year...this is rolling method..there is compounding method and more advanced method..feel free to contact me know how to play this game..ill give consultation free of charge..

You got me going for a bit but then I stopped reading at the bolded part... You are a new account here and so lack rep.. Post here if you've got something to share other than vaporware.. I'd love to see your numbers..

Dear all, i am thinking of transfering my cash from asb1 to asb2 since am worried asb2 gonna b full in the future.

However, since asb dividend calculation is based on minimum balance amount, the process of transferring may cause me about rm500+ (based on lost dividen income 1 month).

Any suggestion on how to execute this with minimal loss?

No exit fee...the only payment will be charge if there any interest charges or penalty fee (for loan have lock in period)

This post has been edited by haziqnet: Apr 4 2018, 01:31 PM

For question 1-3 the answer is bank will calculate what is left in your asb account as an income.

To understand better about this here i share u a situation.

Assume you already have 100k asbf. After get dividen of 7% u will get 7000 right. So now u already have 107k in your asb acc.

Let say u take out all of the dividend 7k, the 100k is still consider as an income. *However if u dun take the 7k dividend bank will take from 107k as an additional income.

Therefore if u want to apply for another 100k loan bank will calculate as below;

Existing 100k asbf future income (7000) and new 100k asb future income (7000). Combine both bank will calculate 14k as income.
But thats not all. Bank only take 80% (some bank may lower or more) from the 14k than divide it to 12 month.

Here is the formula:

(14k x 80%) / 12 = 933.33/month (here is the amount bank will take as an additional income per month)

This also apply to those who have cash in asb account. If u have 100k of cash during application just attach latest asb statement and bank will take your 100k cash as future dividend income.



Hope u get it bro. 😉

This post has been edited by haziqnet: Apr 4 2018, 01:41 PM

If i have that amount of money i will still use opm method to grow the money. Because with opm i will get more actually. With 200k i can use partial of it to apply asb loan 1 million and then use rolling dividend technique to cover for the installment (proxy is a must if i want to this method) another 100k i can put into variable unit trust fund. Actually with 200k of money if u just put into 1 basket u will only get 1 profit unless u diversify it.

Edit

This post has been edited by haziqnet: Apr 4 2018, 03:05 PM

hahaha..almost but not yet... somehow your statement manage to confuse me

ok, i understand this part.

This part not quite understand.... why you show the calculation for future income? I thought bank will calculate based on dividend that we've received, not the future??

I'm asking this because I want to apply for a property loan... since I had already took out some of the dividend of from my account, so I want to know how will bank(s) calculate it. So in this case, does the bank want to see the available amount? or bank just want to know the dividend amount but doesn't care whether that money is still inside my asb account or already gone?

Yes the answer is bank want to see the available amount in your asb account and you will need to prove it with the asb statement. What is left (include loan) in your asb account, that amount bank will take as your future dividend income. To make sure u wont have problem during the process, dun withdraw any money from your asb account once you submit your asb statement at least until your loan approve.


'why you show the calculation for future income? I thought bank will calculate based on dividend that we've received, not the future??"

Bank not calculate base on dividend u already received but based on future dividend income. U know what is future dividend income means right? If u dun understand below i describe it for u what it means.

"100k (loan) in your asb account after 1 year will received dividend. Assume its 7% than your future dividend is 7000 (bank take this as future dividend income)"

This post has been edited by haziqnet: Apr 4 2018, 04:27 PM

For some reason, the last loan i applied with maybank for my house loan, they actually asked for my last years dividend. I showed them my asb statement from myasb.

Yes usually bank will ask for the statement if they check u have asb in the system. U will get an additional income from it. Great right.

Thats why when people said because of asbf they cant apply house loan, actually is not about the asb but because their dsr already burst. If they plan early that wont happen. Bank take asbf as commitment as well as income. Usually it wont effect the dsr.

This post has been edited by haziqnet: Apr 4 2018, 06:44 PM

Asb statement? The one that we received yearly?

Just open for ASB2 after PNB announced dividen income.

i dont think maybank have penalty for asb islamic, if you take up loan conventional, yes it would have penalty for close account within 3 years. I think what you need to pay is, if you take up takaful same tenure with asb tenure, you just need to cover the Takaful. Are you searching a good rate cause of cancelling the loan at maybank?

Yes. You also can print out the statement from myasnb portal

I fix my statement from post#3136

I just clarify from my upper officer regarding asb dividend as an income.

For those who just make asb financing (not received dividend yet) bank will calculate the income based on the future dividend as an income. At cimb average dividend will be at 7%. Therefore if ur asbf is 100k then bank will take 100k x 7% as future dividend income.

While for those who already received the dividend, bank will directly take the dividend as an income.

The more dividend compounding the more bank will take it as your income.

Additional note:
---------------------------
For new asb financing application for existing asbf customer, bank will add the future dividend from the new financing as an income.


This post has been edited by haziqnet: Apr 5 2018, 04:08 PM

Hi, I already confirmed our asb dividend is based on cumulative because i've been loan with ASB since few years ago and calculate it with my excel and 100% accurate.

I am able to calculate out my asb dividend accurately (exactly the same amount) before I go to update my asb passbook in the bank at last time (last time don't have myasnb portal).

The meaning of cumulative is, year 1 RM100k*1.07= RM107k, year 2, RM107k*1.07=RM114,490, year 3, RM114,490*1.07=RM122,504.30

This post has been edited by junclj: Apr 5 2018, 04:11 PM