Need advise, IF I have the cash should I take the moratorium for housing loan and asb 1 and 2 or pay the loan. Car loan I’ll be taking since no further interest. But for this two not sure if I keep the money in asb3 would be better or just paying the loans. Asb3 profit would be much more lower next year. So I’m confused in what should I do. I hope sifus can help me. Thanks in advance.

no one is saying asb is bad. all im saying and it's true is that asbf is bad. take the full 5% dividend for yourself. dont share with bank. of course you would make profit with loan, but you will make much more profit if you dont take loan

Bank could be your best friend. Why don’t u share? Sharing is caring   

Or maybe you’re just playing devil’s advocate 

I.m not a banker.
As long as you do your due diligence, you’ll be fine. In any services, banking insurance property etc.

Using ASB financing is like leveraging in business. If someone could help u expand your business, to improve your sales, but at acceptable cost why don’t u take it?

To young fellas out there, this is my 2cents.

1. Practice delayed gratification. Applicable to people who are not from rich family. If you’re just about to start your life, don’t buy expensive cars, no latest gadgets please, and dont buy house yet. Rent first, it is ok, no matter what your friends say.

2. Then use ASB as your saving and investment tool.

3. Apply ASB financing. If possible max out 200k with the longest tenure and lowest monthly installment. Why 200k, to break your soft cap ASAP.

Why longest tenure and lowest installment? Because we want to improve your cashflow. Why?

So that you still afford to save for other investment, bagi duit bulan2 pada orang tua kat rumah and give sedeqah to the needy. Those are still investment, invaluable.

4. What if i.m not sure whether i could afford 200k installment.

It’s ok. Apply for 50k or 100k first. I know there are many uncertainties in our life. Once u can manage your cashflow every month, u may reconsider to change this. Please check your financial health every week.

5. Use compounding method. I’m against rolling method.

Lets say u can only afford to apply for 50k or 100k, it’s ok. Any extra cash, immediately put in the ASB. just leave something for your routine expense in your salary account. This will help u build the compounding effect.

6. Should I invest in stocks, unit trust etc..?

If you’re not pro in investment, i would suggest for u to fill up your ASB first. Take your time to learn stocks and other investment first. Learn to invest. If your just following tips here and there, that is speculating, for me akin to gambling. Do not do something that u do not understand.

7. Should u save for property, marriage, family etc? Put the cash in the ASB account. This is very liquid. Whenever u urgently need it u can immediately go to the bank, fill up a form and withdraw. In unit trust, stocks, price is fluctuating every day, and there is commision fees if u want to withdraw. None of this is in ASB.

8. Should u forgo other type of investment? Certainly not. Consider property. Learn it first, read a lot. Consider buy to rent. Do your due diligence. Real estate is good as a hedge agaisnt inflation.
9. If u take 3percent as inflation rate, u need an investment that could beat this figure. This also explains why I don’t like rolling method in ASB. U can only beat inflation by compounding method in ASB. And property can beat this. So use both please.

I was able to take 330k loan, because my softcap had increased due to my compounded earnings over time. Did not manage 400k cause my ASB was (200k loan + 130k cash), I started late a bit.

Some people like @boogie were lucky enough to take 400k.

Those were back in the day, nowadays loan cap is 200k.

Okay so you are saying at some point, new investors were given 200k unit capping and 400k financing capping, but you can only take as much loans as your softcap has increased?

Hi all,

Would like to get some feedback. I have 2 ASBF loans for my ASB 1.

100K @ 3.8% (since 2017)
100K @ 3.65% (since 2018)

Should I refinance by scrapping both & make a new 1 ASBF for 200K?

Another Q is, i'm trying to understand abt the hard/softcap. The limit is 200k right? Any compounded dividedend will + to the 200k. So,

hardcap = 200k
Softcap = 200k + "reinvested dividend"

Is this right? I remembered having to transfer my cash feom ASB 1 to ASB 2 bcs the limit has to be ngam2 200K.

Not at all, but you should kinda avoid the moratorium for ASBF and Mortgages

Moratorium Effects on your Mortgage and ASBF Accounts

The loan balance of your mortgage and ASBF accounts would still accrue interest during the six (6) months moratorium. This means that even though you are deferred from paying the installments, you are still being charged interest based on the loan balance as of the beginning of the moratorium

The accrued interest would accumulate each month and must be settled by October 2020. If you are unable to settle the due in one lump sum, it will be capitalized into your loan account thus increasing the loan balance

Due to the nature of reducing-balance interest calculation, the now-capitalized interest will be compounded over the years. This compounding of interest will be in effect till the full settlement of the loan balance.

As such one of the two things below will happen in terms of your mortgage and/or ASBF accounts. Please verify this with your own banks:

1. Starting October your installment will be increased to repay the increased loan balance while maintaining the original loan tenure

2. Alternatively, your installment will remain the same but the tenure will be extended for longer than six (6) months since the capitalized interest would be compounded as explained above

No mean to vroom . but Err... why is it now okay for you to respond like this and all the bigots who cussed me out for predicting this are now silent? I did ask for new projection numbers.. Still waiting on em..

Edit...oh by the way and just to be ahead of those who’ll inevitably spout rubbish comebacks... That question is completely rhetorical as I already know why.. Just pointing out the level of hypocrisy and groupthink in this here thread is over 9000!! Wankers.. smh 

Hi guys. I’m about to take asb loan. Will it be better if i maxed out year of tenure or 30 years will be good enough?

Another person that refused to read and comprehend my post before commenting. Bora Prisoner simply commented, consciously taking words out of context...Why? I don’t know.. But then, this thread has always been like that..

FYI, Maybank has a thing where you pay ahead and it’s factored into your remaining loan balance. Then every month, that balance is “increased” as “deductions” are made. Guess what? Since your loan balance is reduced, means you get charged lower interest too cuz you’ve technically paid off a sum owed... recalculated every month... How do I know this? Ayam doing it..  So NO! the interest amount doesn’t remain the same as if paying monthly.

Oh i get it alright.. Don't worry... I didn't ask you to take my "wrong advice" either.. Please do you. here's what I know as fact..
Option 1.. Every single month, go queue at Maybank to withdraw RM1K from other ASNB funds, etc to deposit into loan linked SA so got fund to deduct when time comes..Hassle, traffic, jam, stress, no benefits beyond "savings" and maximizing. How much savings? IMO? Not worth the hassle.

Option 2. Don't do all that shizz above every month.. got spare cash.. withdraw once for say 6 months or a year and pay upfront. INSTANT interest amount reduction and more time and clear brain to make money elsewhere..

I will pick Option 2 any day any time. Why spend and hour or 2 chasing peanuts when the same amount of time can be used elsewhere for more worthwhile endeavors. End product? Still earn both places. Less stress and more happy. So yeah, you do you. 

Yeah.. Just did...Options 3, 4, 5, 6, 7, & 8.. Would you like to list all of them? I'm afraid to list them. Lest they can't be fathomed..

lol.. you do you fam.. Just because you don’t understand or can’t comprehend statements doesn’t mean they are not fathomable.. It just means that you can’t. The Earth is round not flat yeah..  As always, it’s a pleasure to tease the smart-a**es out in this group..

P.S. I still love you all yeah.. Don’t sweat it.

Let him be lah, I do at times suspect he is just trolling because I refuse to believe that anyone can be that dense.

Anyway bro, wanted to thank you for the refinance-without-cancel-sijil tip. That helped shave a year off for me to reach my goals.

I call BS.. You do mean offense. Kindly call out those 9 times out of 10 that I was wrong. And I'll point out 9 times out of 10 that I've been right, including accurately predicting the poor returns being experienced today, and that longer time will be required to break even, and also that you can indeed lose money if you simply sign dunno what and not plan.. That's just 3 things I've spoken about that is RIGHT.. So dunno where your 1/10 stats stem from.. Bias perhaps? Pls check it at the door... I dare you or anyone else here can pull out 9/10 verifiable records I was wrong and didn't admit it. See, it isn't the first time that I've been personally attacked. Cuz guess why? you can't fault any opinion or POV I put forth.. So take the easy way out and attack the person instead.. lol..

Nah, nothing happened.. I simply asked you to back up your numbers and claims and as expected... no one could step up. Also, do you notice how you didn't say i was wrong about the 3 examples I gave?.. Which means I was right? Thanks for the repeated validation.... AGAIN.. So yeah, I'm justified to call you out about spouting BS. From this, I can quit this game d. You've categorically shown that I do know my stuff and you like the child you call me, sadly & expectedly....You can't back your talk up. I'd say that's conclusive proof right there. When you can? (and we both know you can't) No worries.. Just tag me and I'll pop up again.
Watch me actually resume contributing freely to the thread.
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By right, ASB or ASB2 has higher dividend rate?

hope i summarize correctly from what i read so far in this thread, especially from successful persons like @wild_card, @buggie and @Bora Prisoner

1. Always maximize your loan tenure (longest right now is 40 years), it's not about to complete the tenure but rather to improve your monthly cashflow

2. Always refinance to get better rates and longer tenure (or if you're long enough in ASBF, you can negotiate with your Bank to revise the interest rate)

3. Do not take up Takaful to improve cashflow (there is no such thing as COMPULSORY Takaful)

4. Do not use your yearly dividen to pay for your monthly installment, let it compound, and you will see the 8th wonder of the world 

5. if you have spare money, DO NOT pay extra/additional to your ASBF account, it wont increase your principal/lower your interest charged, just put your extra money to ASB2 or ASB3 account

6. if for some reason, there's another moratorium offered by the banks, DO NOT opt for it if you can pay your ASBF, because interests will be charged during Moratorium and will take up your principals 

anything i left out?

You so rajin layan him bro hehe.

Its also about opportunity cost. The fella claims his asbf interest rate is a low 3.4%, but at the same time concerned about paying more interests? So he suggests taking out of funds like ASB2/3 that give returns above 4%?

Simple maths also dunno. Later cover line and say it was about saving multiple trips to the bank!

Bet he takes out EPF money to reduce his home loan as well lol.

I totally agree with bro buggie. Using compounding method only in 10 years you already double your money.