It's only for the bumis :/

Termination will take up to 2 mths max - you can reapply first for preapproval before terminating the existing one. Disbursement will take about a week (in Ambank) once existing loan has been terminated.

Anyway, our current 5% promo in Ambank will be ending soon so do feel free to drop me a PM if interested - also rebates will still be personally given as well

Existing effective rate, correct?

1. Best if you apply first, and then once you do get approval you can terminate the current one, which will take a few weeks to monts depending on MBB.

2. yeah, unfortunately you stand to lose 1/12 of the dividend declared for this year (to be declared next year) due to the minimum balance calculation of each month.

let me know if you are interested at 5% for 30 years.

Ambank offer 5% ended soon.

Cimb offer currently is 5.05% and end on 30 june.

More info please feel free to drop me a pm.

This post has been edited by haziqnet: Jun 1 2018, 11:00 AM

For those who want to teminate and reapply, i suggest u to terminate on early nov. So u can get full dividend for this year. Hopefully the promo rate will be extend.

However if u still want to terminate to catch the promo rate you can reapply first and terminate later. Make sure ask first the bank or agent still can give the promo rate or not if the loan is process after the promo ended. Im afraid once u apply and because the existing loan yet to fully terminate they will process your loan using the new rate. (If the rate is the same or lower than your previous rate is ok but otherwise u might end up paying more later)

For those who still not max out the 200k loan yet for example 100k better to apply first and after the loan approved then you issue termination for the existing loan.

This post has been edited by haziqnet: Jun 1 2018, 11:10 AM

Hi Haziq. Can you elaborate on the relevance of terminating in November to get the full dividend for the year, as oposed to doing it anytime during the year? Isn't the calculation for ASB dividend:



So if the ASB units are withdrawn in November, you would still lose out your returns for November. Likewise, if you withdraw the units now May, you would still lose out for this month because the minimum balance for the month of May would also be reduced, before it can be replenished by the new bank. The dividends are applied flat for the year for each month (dividend/12 * minimum balance for that month).

Did i get this wrong?

This post has been edited by wild_card_my: Jun 1 2018, 11:18 AM

Usually the termination process will take up to 2 month till fully termination. So if u issue termination on nov, ur loan will fully terminate after december usually. I more recommend to issue termination between 10-15 nov so the loan will terminate after december. Try also to discuss with the officer in charge if possible to discuss about your intention.

And at the same time apply for new loan so it will start on january next year.

Additional note : when u issue termination ur loan dividen still calculate till it fully terminated.

This post has been edited by haziqnet: Jun 1 2018, 11:20 AM

But that would not have any bearing on the amount of dividend that you would receive by next year in January.

If you terminate in November, and the units are fully redeemed in December and replaced with new units deposited in December from a different bank... the monthly minimum balance for December would be zero

Likewise, if you did the replacement process in June, and the loan is fully terminated in July, and the units are fully redeemed in July, but replaced with new units deposited in July... the monthly minimum balance for July would also be zero

So... what is the relevance in terminating the loan only in November? You can do it anytime, now especially since there are so many promotions. Let me know if I got this wrong. About discussing with the officer in charge... well a lot of them are mistaken too, they are trained to sell, not really to understand the product

No lah. Each month's dividend is based on monthly minimum balance. So if you withdraw the money half way during a month... the dividend for that month would be RM0

Here is an example that I usually use with my (mortgage) clients when discussing ASB and ASB loans:

In this month of June, you currently have RM200k ASB loan with CIMB. last month in May, you decided to close the account with CIMB and get a new one with RHB.... On 1st June, CIMB closed your account, and fully redeemed the units in your ASB account... at this point, your ASB balance is RM0 correct? 10 days later, on the 11th of June, RHB deposited RM200k into your ASB account... making your current balance as of 11th of june at RM200k.

But what is your minimum balance for the month of June? RM0 lah, because for those 10 days, your balance was RM0.

So if the dividend is declared at 8% for this year... your dividend for the month of June is 8%/12 x RM0 = RM0

This post has been edited by wild_card_my: Jun 1 2018, 11:36 AM

Yes its always relevant to terminate the loan anytime to get lower rate. My posting above incase the promo rate is not extend, their new loan might end up with higher rate later if terminate now. Unless like i say if the bank can reconsider to give the same promo rate even the promo rate is already ended (new rate is higher) then you can issue termination and reapply at this month.

If u see on my previous post i always advise them to get for better rate if their loan already 1 year and above plus no takaful.

The missing dividen still cant avoid (im correcting my statement) sorry my mistake. Just for those who want to get full dividend this year should issue termination on nov.

Tq bro for enlighten me. Sometime we r wrong too.

This post has been edited by haziqnet: Jun 1 2018, 12:02 PM

I think what he meant was that by terminating end of the year you will get the full dividen on that year and lose out the dividen on January.
By terminating middle of the year you would have to wait few more months to get the dividen and it will be a reduced dividen.
Basically it is just a matter of convenience.

But i agree with @wild_card_my, at the end of the day the amount of dividen that u get is the same.

Unless it is for a mortgage application, I do not see the relevance. For mortgages, the dividend received matters quite a bit, because you can use the dividend to "counter" the commitments that come with the ASB loan...

So if you are planning to apply for a mortgage, it may be somewhat wise to plan ahead, that is to redeeem the units next year, and not this year so your dividend received in January of next year would be maxed up

otherwise, it is a futile process, especially if there is a pretty good promotion going on right now that you are letting go just to do this "planning" which may not amount to anything

Plug: if anyone wants to do ASB loan can as me for the full details. I can explain top to bottom as much as I can do the same for mortagages, if not better (because ASB is so straight forward!)

No problem mate, we help each other. Market is so big, we are like in a group of like-minded people fighting for proper financial planning and filling our pockets at the same time hehehehe


This post has been edited by wild_card_my: Jun 1 2018, 11:57 AM

I believe there’s a misperception about ASB termination in which no dividend will be earned for the loan eg 200k during the whole termination period eg 2 mths (if termination takes more than a month).

For example if the whole termination process took around 2 mths then you’ll actually gain 1 month of dividend for the 200k loan since the units will still be in account up to the point of complete loan termination in the 2nd month. For the 2nd month there would be no dividend for 200k tho since lowest balance for the month is zero (assuming no other balances in account).

As for our 5% promo rate in Ambank, rate will be locked in upon application so there is no issue in the event that rate increases after the promo period.

Edit: Sorry, to clear up the confusion, rate will be locked in upon application however it’s still dependent on Base Rate so if BR changes then so will the loan rate.

This post has been edited by Ronald K.: Jun 1 2018, 02:00 PM

Easy to understand once the money is fully redeem from the client asb account than no more dividend calculation.

For example issue termination on july. July and aug stil available money in the asb account. Sept the money is no more, then no more dividend for sept. Am i correct?



Wow thats is great.

This post has been edited by haziqnet: Jun 1 2018, 12:25 PM

Correct, because there is no money in the account for the month of September, then obviously no dividend.

but even in the event money is deposited into the account later in September... there is still no dividend pay out for that month because the monthly minimum balance for that month has already reached zero at one point.

Yup true if the money deposited around sept still 0 dividen because the lowest amount on that month is start from 0 too. Only the next month the dividend will calculate the deposit amount. Hope this will help the other to understand more about how asb dividend is calculate. Its very straightforward actually hehe...

If explain in person lagi senang.. someone ought to do a video on this la

TLDR: If one plans to terminate and reapply. Simultaneously apply and terminate close to the beginning of any month (promo dependent) to lock in specific rate (BLR rates dependent).. Process will take up till 2 months. If done right. One only loses 1 month dividends or max 2 months.. Life goes on.. Correct me if wrong.

Yup that’s correct 😄

Awesome... head almost after reading the exchanges contained in the last 2 pages..

Haha sorry for my bad english.

Conclusion if someone want to terminate and reapply, they still lose 1 or 2 month dividend. Therefore if want to terminate anytime actually is ok unless u want to get the dividend after fully terminate so apply for termination around nov or dec. Happy reading hehe 🤗🤗🤗

This post has been edited by haziqnet: Jun 1 2018, 06:11 PM