can it be settled within 1month period?
any tips

This post has been edited by epie: Aug 17 2018, 01:04 PM

my concern as well.. if can settle within a month, im interested to refinance..

Whats the best way to take and pay the loan if monthly commitmment can put aside 1k per month to invest?

Pay from other income outside the investment chanel

Finally I did it for the saving basis.
You may calculate with this excel template.
https://drive.google.com/open?id=0B73zOYexH...MnQwZUlKRXgxZW8

https://drive.google.com/open?id=1UzP0zJA40...k37RkhFgD31ii-z

If you loan for 1 year only for 4.3%, RM140k, which mean you need to pay RM11,941 per month. However, ASB is only final at 31 December 2018 and receive dividend at 1st January 2019.
If you put until August 2019, start from now. You cannot get anything. You money only start calculate from next month, so start from Sept 2018 until Dec 2018 only 4 months. You will get nothing from Jan - Aug 2019 unless you put your money until Jan 2020 then only take them out together with dividend. Usually dividend for 200k is around RM14k per year. If you loan RM140k+60k cash now for 1 year, your loan have to pay in sum of RM143,292 for one year. Let's say your dividend only calculated by 4 months, probably you only get RM4.9k dividend at 1st Jan 2019. Final gain is RM1.6k after deduct your loan interest of RM3,292.
However, you have continue to pay for your loan until next year August. For 11,941/mth. So do you think RM1.6k profit is worth for your invest?

If you use the saving basis, 60k+7.5K saving at August 2018, then sept - dec 2018 7.5k/mth. Let's say dividend is 6.75%, so you will get around RM1.7k dividend. So now, you should don't waste your time to keep your money in ASB account. Better just withdraw out all the money after January 2019 because you was said that, you need to use all of it at August next year. You cannot get dividend from Jan - Aug 2019 unless you keep your money until January 2020.

Always use my excel template to calculate, my excel will give you the best answer.

This post has been edited by junclj: Aug 21 2018, 04:25 PM

Hey guys, just dropping by to let you know that CIMB ASB financing allows the borrowers to apply based on joint-application. This means that the husband, for example, can apply for ASB financing using his income on behalf of the wife's ASB allocation

So in this instance, the husband can have 2 ASB financing accounts for RM200,000, one under his own ASB name, and the other under his wife's

Depends on the bank. It took 1 to 3 months

Hi..

I'm need pro opinion here..
Didn't have house yet..

I and waifu both already finish 2nd year of asb1
Waifu using her bonus to pay for 2nd year..

I still have last year bonus untouch.. Around 15k

My Balance payslip only can get 1k plus commitment only

She at max commitment .. But got 85k on TH..

Advice me what to do next? Get asb 2 ( if still can or anyway possible?) or buy house?

Tq

My advice is to get a house first only if you both need one as a family unit. Else, if your current abode is fine for your family needs and is in an excellent location for going to work and back? Then more investment definitely won't hurt. Just be sure to take without extra insurance. Cuz if you are considering a house now, probably means in a few years, you both will need one for real and can easily terminate the ASB2 account. Proceeds will help towards the downpayment and or reno costs.. Plus you'd channel the loan repayments towards paying for the home instead.

Depending on the locations and houses..overall, better don't be thinking house prices will come down.. Nope, it's fairly low at the moment.. Been hearing that for awhile, even before we decided to get ours couple years back. So if you both find one for the right price and location? Pull the trigger and don't look back. Cuz it's going to be a home where you leave and make memories.. Home as an investment comes second.. If at all. Just my 2 cents.

Both ASB and TH saving can be included as an additional income when you applying for the house loan. Depends on your needs, if you are ready to buy a house (in term of deposit, fees and monthly installment) then go ahead.

This post has been edited by ezrachan: Aug 23 2018, 12:30 PM

You need to settle with the current bank first, then reapply for a refinancing from the bank that is offering the lowest rate in the market, which is about 4.9% that I have gotten for my clients


CIMB has 4.3% promo? I havent heard of this, can you link any sources?


Can, my clients settled his MBB loan in about 10 calendar days time

As I mentioned, it can be done, as my clients settled the process in 10 days time, plus about 2 weeks for new application for the new loan

At RM1,000 a month you can apply for RM188,500 net (no insurance) at 4.9%

So it's just another loan and not a refinancing.

5 post quotation limit

2 things that I will mention:

1. ASB/ASB2/TH dividends can be used as part of your income for you mortgage application. However, the banks will want to look at the dividend statement, which means if you take ASB2 now you will only get about 4/12 of the total dividend declared for ASB2

but wait, ASB2 fiscal year ends in March 31, and if I am not mistaken, the dividend is decalred on the 1st of April, so if you invest using financing for ASB2, the dividends will be good for September 2018 till March 2019, which is 7/12 worth, which is not bad

2. The commitments for the ASB-financing will start right away, it will be calculated as part of your banking commitments

I help people get financing for both properties (mortgages) as well as ASB (ASB-financing) so this is right up my alley

This is not the place to discuss it but a little tangent is ok i guess. I noticed the house prices has been going down for years now, people who bought their properties 5 years ago are not seeing the upswing. Just thought that I mention properties are not the recession-proof investments that many property guru purport them to be all this while.

Not in the sense that most people are familiar with but I am technically correct and that is the best kinds of correct. here is the entry for "refinance" in investopedia

A refinance occurs when a business or person revises the interest rate, payment schedule and terms of a previous credit agreement. Debtors will often choose to refinance a loan agreement when the rate environment has substantially changed causing potential savings on debt payments from a new agreement.

so we are fulfilling "revises interest rate", "payment schedule" (increasing tenure), and "causing potential savings on debt payments from a new agreement"

So we should agree that it is in fact, refinancing. I do mortgages as a living, so I understand that most people view refinancing in mortgages perspectives, when you may get the cash-out as well as having the process done in one swoop (the new bank will settle the outstanding from the previous bank). But that is, in fact, misleading. Refinancing is just that - to re-finance

Thank you

This post has been edited by wild_card_my: Aug 23 2018, 01:59 PM

I would take all 4 loans ASB1 and ASB2 for both wife and husband = total 400k loans and pay using the 85k

dividends don't touch and let it ride

This post has been edited by buggie: Aug 23 2018, 02:08 PM

I agree, I would too.

ASB/ASB2 dividends are net. You dont have to think about anything else, unlike houses.

At time it is cheaper to rent than to "buy" a house. Quotation marks because when you buy you don't own the houses, you give it to the bank as collateral. I do both mortgages and ASB financing and I would be the first to claim that the house is not a fool-proof investment.

It's still at the core dropping one loan for another from the new bank or financial institution.. Let's call a spade a spade and not attempt obfuscation with legalese and technicalities.. Unless you are saying that refinancing with you means free money and no repayments.

Sure houses are not fool-proof investments.. Doesn't mean that some haven't appreciated or that all realty agencies are making a loss.. To generalize in such a manner is wrong. Which was why I hinted in my earlier post about buying a home to live as a family vs buying strictly for investment sakes. That's another story for another thread. I've put this out there before and do again. It's great that you are helping and all. But with finance and investments, can't simply be telling people not to think about anything else and that loans to finance asb is a sure thing. Is it now? Yes.. Next year? You and I have absolutely no idea. Past records have shown its returns essentially free falling.. From double digits to single digits and now lower single digits plus sen and some creative accounting to appear "stable". Bank's are reacting by lowering interest rates.. Cuz some money is better than none at all.. Simple! They aren't in it for charity sakes.

What am I saying? Offer facts and let folks decide which is more in line with their risk appetites. If they don't have to think about anything, then there would be no point to the terminate and reapply methods or when best to implement it. Just saying.

1. You are completely wrong though, I have already given the definition of refinancing, and it is your own fault that you mistook the meaning of refinance as "getting free money". There is no such thing as "free money", the cash-out that you receive from refinancing is still a loan (backed by the property), and I always make that clear to my clients. It is not surprising that you are also finding it difficult to understand the meaning of "refinancing" which to you is more akin to refinancing of a mortgage account, with the so-called "free money" to boot. As you can't even grasp the technical meaning of refinancing i do not think it is a good idea to spread the misconception of what it really is.

As such, settling the current ASB loan and taking up a new one to enjoy better rates can be considered "refinancing", even if there is no involvement of "free money".

2. As for the comment about properties, I just have these few things to say:

a. real estate is just an investment vehicle, like many other including ASB/ASB2, it has no guarantees of return (capital-appreciation, dividend, rental). These talks about how a property is better or worse than other investment vehicles are coming from snake-oil salesmen. yes, the property is there, it is real and tangible (unlike ASB/share units), but there is no guarantee in its value, which is the crux of the issue that I have with people that are pushing properties as hard as they can. It is not wrong to talk about it, but we must recognize the fact there are properties bought in the past few years that are only retaining, if not losing their values over time. If this continues for the next 30 years or so, would you still be saying that a property is a good investment? What is wrong with renting?

b. as it is now, buying a house as a sub-sale (as it is for own stay now, undercon is not suitable) is a LOT MORE expensive than renting. Costs (including hidden costs) will eat you up, in the form of down payment, MOT, SPA, LA, fire-insurance, management fees, sinking fund, taxes, maintenance. This is just anecdotal, but based on my clients house prices that they are buying today, the rental income can never reach the installment alone, not including the other costs that I have mentioned. So you would have spent a lot of money on the upfront costs, and then you would have to spend more to pay off the banks through your mortgages.

Please consider these things before recommending one asset class to another.

There, facts right in your face. In fact, I have been dropping facts upon facts with numbers to back them up. That is my style, unlike you who seem to enjoy obfuscating facts as proven in your misleading definition of "refinancing" above.

This post has been edited by wild_card_my: Aug 23 2018, 03:37 PM

Dude.. One simple question..

Scenario A..
Mike currently has a loan of 209k for 200k ASB units. This is with full Takaful and loan rate of say 5%. When Mike comes to "refinance" with you. He obviously still wants 200k ASB units. What does your "refinancing" do?

Scenario B
Mike currently has a loan of 190K for 200k ASB units. This is without Takaful and loan rate of say 5%. When Mike comes to "refinance" with you. He obviously still wants 200k ASB units. What does your "refinancing" do?

Also, don't think I didn't notice how you only pushed a certain agenda for house purchases, in favor of your completely risk free loans/refinancing.. Also noticed you glossed over the declining returns and banks reducing interest rates in accordance.. I guess my pals and family who bought a particular landed property for around 400k all in.. Brand new from devs.. Free MOT, SPA, furnishings..bla bla.. That was 4 years ago. Today, same property is worth 700k as is.. Oh yeah, paid cash and no loans.. I'd call that a good deal for 4 years.. Especially if one also lived in the property.. So if sold today.. Means the past years has been basically rent free. But as I said.. I don't blindly accept stuffs from so called pros.. I'm unregistered and uncertified.. Yet, I do understand far more legalese and financial industry terms than most.. This without having to call in my educational qualifications and background.. Just using common sense here. mind you, from my previous posts, I'm all for not purchasing a crib unless absolutely needed and all factors taking into consideration. You'd get this, if you weren't sitting so high up on that horse, looking down..

Edit: Modified above for better clarity. Awaiting response on how refinancing doesn't mean taking up another loan.. Only this time, either from the same or a different institution.

This post has been edited by voncrane: Aug 23 2018, 04:21 PM

So I take it from ur advises

Max out all 400+400k asb loan
And don't buy house yet..

I reluctant to buy house yet coz didn't know where I will settle down.. Especially waifu. Coz her department usually will rotate staff to other place after 5 years

BTW got one land lot just less than 200 meter from school.. Maybe will stay there after all. Easier for my child later.. 4y old now

Correct. For most, we don't buy and change houses like we do smartphones or other cheaper stuff. It's usually a longterm commitment. So has to be decided properly. For some, it's easier.. As they can see themselves being in the same place for a decade or more. For others, prefer to move around to max career progression and or wealth. There's no one answer to all.. It's as I described earlier.. So if you've figured out that it's something not worth getting at this time. Then, sure best to invest now and gain some extra cash.. Pending when a clearer decision can be made on when and where to buy your home. I further advise, not getting the additional loan insurance UNLESS you've decided to pay the loan until the end. The insurance will then serve as added protection.

This post has been edited by voncrane: Aug 23 2018, 04:27 PM