there is any penalty for termination? how long it takes to get a release letter?

As for the penalty you need to check your LO. But with my banks that I know of, there isn't any penalty. I can't speak for your case though in fear of misleading you. best way is always to check the LO for the terms, because different banks have different products

release letter depends on the bank and officer processing your application to close the account.

can i know all the bank that provide asb loan.

thanks

that I know of: MBB, CIMB, RHB, HLBB, AMB, if I am not mistaken, Affin does too

This is the first time i've heard about asbf refinancing. How does it work? The new bank will settle the outstanding loan amount and just create a new account with matching tenure in the new bank? Or i do it manually as cancelling my existing loan and apply a new loan with lower interest?

First time for me too. Never heard of this ASB refinance before.

It is not so much as a "refinance" like it is with a mortgage refinancing. But it is to close the account with the previous bank which is giving higher rates than the current market rate, and opening a new account with a new bank that is giving the lowest interest rate

For example, if we look at this person' interest rate, he would benefit by closing his accounts with the bank that is currently charging him 5.6% p.a and 5.45% p.a on 2 ASB loan accounts. He applied to open a single new account with a different bank that is giving him 4.9% p.a. interest. (keep note though, the minimum loan amount to get this rate is RM50k, of which he applied for higher than that)

Ok, understand. My worry is the new loan may not get approved. But i think this is worth to consider.

It is.

As per the examples I have shown above... that is the difference of about 0.55% and 0.7%. For every 0.1%, every RM100,000 loan, you are gifting RM100 a year to the bank.

So imagine in the first year, your loan outstanding is RM200,000, the difference between your current rate and the new rate is 0.7%, you are easily losing RM1,400 just because of in action. And that is just for the first year, this repeats all the way (with reducing amount of outstanding) for the next 30 years

Current best rate with takaful is 4.85%, and without takaful is 4.9%

Let me know if any of you guys would like to make changes to your current ASB financing

This post has been edited by wild_card_my: Aug 15 2018, 01:23 AM

may i know how much monthly for 200k w/o takaful if the rate is 4.9?

mine is 5.35% with takaful full tenure.. just want to compare the diference..

For 200,000, 4.9%, 30 years tenure, the monthly installment is: RM1056/m

The difference is quite huge, check your current installment - it would have changed if you had taken the loan a few years ago due to changes in the OPR and subsequently your BR. You would have to pay more now than you had to a few years ago. maybe it is time to refinance?

haha was with maybank 12++ then i terminate to cimb now 1144 per month.. i took full 30 yrs takaful, push into loan about 9k.. this month only my balance reduced to 200k.. if 'refinance' now, i'll get nothing from bank but maybe 60% from that 9k right?

difference is 90 p.m and close to 1k annually.. what is ur suggestion?

My suggestion is do not look at the past, and consider changing the future.

Based on the repayment below, you would end up paying extra RM84 a month for the next what, 20 or so years?

Also part of the reason I tell my clients not to take ARTT, but to take life insurance if you really feel that you need a form of insurance

the rate with takaful is not included yet right? means the monthly payment + takaful will be more than 4.85% if we calculate as a whole?

Takaful financing follows the ASB financing rate, essentially, you are borrowing more than 100% of the ASB value.

The ARTT quotation produced has it "own financing rate" but that is there only to assume the rate of repayment of the outstanding loan, not as its own financing rate.

Hope this helps

but we also need to calculate the missing dividend when we are doing the refinancing process

1 month's worth if you time it right.

Dividend loss: 200k * 1/12 * 7% = RM1166.67

Interest saved due to no disbursement during the same period: 200k * 1/12 * 4.9% = RM816.67

The difference is RM350

How much is the difference between 4.9% and say, 5.2% on a yearly basis again? And that repeats every year for the next 25, 30 years. You can do the numbers.

Is it an actual refinancing plan or we need to personally settle with our existing ASB financier etc etc.

hi sifus, sorry not sure if this is the correct place to ask,

i have 60k saving, and i can save 7.5k monthly, but until august next year i need to use all of it,

what is the best way to invest the money?

i'm thinking to put the 60k in asb,

then take 140k asb loan but terminate after 1 year. or take fixed deposit better? currently cimb has promo 4.3% pa. which one give more return?

Take 200k loan. Set aside 14k for this yr. Then use the dividend to pay for the loan. The 60k and monthly income put inside fd or tabung haji. Use extra money from the dividend to do what you need next yr.