1. ASB-f

A. Incomplete question. What is the current outstanding of the loan, and what is the cash-value of the ARTA? This is why I always recommend clients not to take ARTA, people who do are getting bad advises, because when they need to refinance or settle the account, they would have to incur some losses (through the premium of the insurance agent which happens to be the bank itself). Currently the best rate is 4.9%, and some clients who took up ASB financing is currently being charged 5.45%, it would be a mismanagement of one's own finances if you do not look into the market rate and refinance the loan into something that is of better rates

Incomplete question, which suggests inexperience of the person asking the question. Please try again

B. As above, incomplete question (what is the original loan amount), but this is more doable. I assume John has paid for the financing for a few years, thus making the current outstanding reduced by a bit. He would have to ask the current bank to close the ASB-financing account, all the units (non-dividend, non-cash) would be sold off. Refinancing that loan would allow him to get 190k or 200k from the new bank, at the rate of 4.9%, he can take a reduced tenure or l. I dont understand what you are trying to do here.

By the way, may I suggest that you use the correct terms when posting your questions/assertions. Using the right terms, there are differences between the loan limit (original loan amount) and current principal outstanding. However you chose to write these instead: "currently has a loan of 209k" . Which is confusing and allows room for miscommunication. Usually I would visit INVESTOPEDIA when i am not sure about some terms because I avoid using the wrong terms, since as you can see in here and in the mortgage threads, I see myself as an educator of sorts.

2. On to the property side, I noticed that you love using anecdotal examples to back your points, of which I am not going to address mainly due to 3 reasons:

1. they are anecdotal and personal which do not represent the whole real-estate industry as a whole.
2. It could be coming out of your behind for all i know, a.k.a bullshit
3. There is no way that I can argue against personal experiences, we can hear about it, talk about it, but please don't use anecdotal experiences to prove you points.

What I claim is true though, a lot of publications are saying the same thing, here is one of them:Downtrend in property prices



On top of this, paper gains are not gains unless you sell it off. You need to understand the differences between liquid assets like cash/ut/asb vs real estate that takes between 3 to 6 months for the transaction to complete, if that.

You are right, with ASB-financing you can close the account in as soon as 10 days, as per my experience. So it is a good liquid investment. In the event when you need to buy a house, you can just call up the bank, fill up some forms, and the loan will be closed in a very short time.

Dividend income from the ASB can also be used as part of your total income, useful when the banks are calculating your debt-service-ratio. It will not be able to cancel out your commitments as a whole, but it is better than having the commitment but without the income (i.e hire purchase)

This post has been edited by wild_card_my: Aug 23 2018, 05:13 PM

Really... So it's okay to use your anecdotes to prove your point but I can't to prove mine? Even though mine is definitely plausible and easily verifiable from public records. There are reputable websites one can visit to find out real transaction values done today and compare it against price of the same property when it was launched.. As a "Pro", this should be common knowledge to you.. What's all these bla blas above? An essay? Haha.. Dude, take a chill pill.. I asked simple questions and they required simple answers. I also crafted the questions in a manner in which you a pro should have no issues understanding it. Perhaps I need to dumb it down even further.. Here goes..

During your refinancing, does it involve settling previous loan and balance with previous bank AND taking up another loan from your recommended bank? It's a simple yes or no question.. You pull out another graph for this...?

Aiyooo. Why this thread so hot today.
Why so difficult one. This is what i do:
1. Take max loan for both ASB1/2. Dont touch at all.
2. Dump all saving in Tabung Haji.
3. Once have enough emergency fund, use extra money to buy properties and stocks. I bought 1 subsale and 1 undercon using loan. Subsale prop give me rental income which covers installment/maintenance fees.
4. Be alert with current interest rate. Refinance asbf if worth it.
I am not that savvy with financial management but so far i dont have much issue with this approach. Asbf is the best investment tools due to its simplicity. Property can be a bit headache sometimes.

I've helped my good friend to refinance her ASB financing. She loaned rm100k with rm811 monthly commitment for 15 years @ 5.25% interest plus a term insurance to it.
She serviced the loan for 3 + years before finally refinance it. In that 3 years, she paid about rm20k+ principal from rm100k loan.
So what happened is: she got that rm20k back and get a new asb loan rm150k for 30 years at 5.05% interest, with rm810 monthly commitment.
So when we refinance (or terminate) asbf, we get back the principal we had paid.

This post has been edited by baldi91: Aug 23 2018, 09:15 PM

Anecdotes coupled with years of industry experience, plus when anecdotes are not enough, I provide facts and figures like what I have done to you and other forummers in this thread and mortgage thread

And then you chided me for taking things too seriously by bringing up a graph. So which one is it? Make up your mind la, or do you prefer amateur hour arguments?

Anyways ASB financing has shown over and over against to generate returns to the borrowers, why? because the banks' BLR (note that I am not talking about OPR and BR here) has NEVER been higher than the ASB's yearly dividends, don't believe me? Check out these sources below. I have had about enough with you, I really dislike amateurs who don't know their place. You want to argue, fine, but when I furnish you with documents, data, numbers, figures, and statements, please back down instead of chiding people of taking things too "seriously".

These matters involve people's money and investments, of course I have to take things seriously unlike you who is treating it like a game.

ASB hisotrical returns

Bank's historical BLR

hi everyone, need some advice.

1. my ASB has 100k cash + untouched dividend for 5 years + 100k loan (started this year)

if i were to withdraw my 100k cash to invest elsewhere & apply for 100k loan at the same time to max it again, do i just tell the bank to withdraw the 100k CAPITAL instead of the dividend amount? it wont affect my accumulated dividend right. OR i can do switching of fund to ASB2/ other funds instead without withdrawing?

possible to withdraw & apply loan on same day to minimize the loss?

2. planning to terminate loan on 5th year (rm543 mthly), how much do i get back ? all amount receive upon termination will stay in asb account ?

3. if by the 5th year, i do not need any cash urgently , should i just continue with the loan to yield extra dividend / terminate & re apply ?

thanks a lot

This post has been edited by yvonne7: Aug 23 2018, 09:58 PM

Beats me.. Wild fella die die like to talk himself up.. Like what he does is beyond mere mortals like the rest of us... Refusing to answer simple questions.. but instead launch into story mode.. Nothing I haven't seen before.

Your methods is perfectly fine as it offers variability and increased risk diversification..

I agree.. It's a no brainer.. What you've written.. No magic involved.. Refinancing is as I said, replacing unfavorable loan A with a current more favorable loan B.. Pending if it ever becomes unfavorable. Obviously as with all ASB termination, if money owed to the bank is less than money present in the investment fund, then the balance is refunded to the payee...If more, then payee owes the bank.. Simple.. no need graphs or charts or lingo mumbo jumbo. Plain as day.


Okay Einstein.. You win lor.. Answer simple questions also difficult.. You must be good at Tai Chi.. The fact that you are unable to offer simple answers to simple questions, speaks volumes about your character.. Sometimes, simplicity is best.. K.I.S.S.... You may want to take note of that... Enjoy your evening.. I'm done..

Sigh.... Can't we all just get along?

What's life without 'drama'? Jk, hehe.. Anyway I'm sure many, including myself do really appreciate all the sharings and posts (including the constructive criticisms / feedbacks) made by wildcard, voncrane and even yourself in this very informative thread. So thanks very much. I had doubts (not the negative ones because i was already keen but was just unsure) too myself in the past on this asb financing but after going through this thread it's been very helpful and reassured me with what I intend to achieve with asb financing. Everyone has their own goals.

This post has been edited by timo1003: Aug 24 2018, 12:14 AM

My apologies for participating in derailing the thread.. I meant no offense and none taken.. It's all good. Just banter is all..

no apologies needed,...I think many readers would be able to judge to content and points presented to know which is more reliable and more fact based......then they should be able to differentiate between those posts.

anyway,,....I think most would have forgotten what the contents are after sometimes...

so i take it that i should refinance my asb1 rite?

currently paying 1225 monthly

FOUND this

BSN MyRinggit ASB
BSN MyRinggit ASB 1117.34 4.80% 30 Years -- View More
More About This Product
For Government and Private Employee (Salary Deduction For All Income Range)
Eligibility
All qualified ASB investors under the ASNB guidelines.
Aged 18 to 65 years old at the end of the loan tenure
MoF up to 100% + 5% (including Stamp Duty, Collateral cost, Insurance and will fee).
Loan amount will be in multiples of RM1000 and subject to the limit.
Fee and Charge
Stamp Duty: As per the Stamp Duty Act 1949 (Revised 1989)
ASNB Certificate Fee: RM50 per certificate
Insurance (Optional)
Will Fee (If any): RM371
Late Payment Charge: Monthly installments in Arrears × 1% × Number of Days Overdue / 365

That's the idea..

Yep.. But still depends on how much loan you have left to repay and how long have you been paying.. Need to compare it with how much available in the funds.

Where you got this rate of 4.8% at ASB? The website shows 4.95% for me-> https://www.mybsn.com.my/content.xhtml?contentId=513

***************************************

Anyway, my monthly payment is rm1256, currently under the interest rate of 5.45% with takaful and so eager to refinance it as I feel I'm getting a loss from here. I've made the monthly payment for almost 3 years. So the question is, should I refinance it as soon as possible or should I wait until the financial year ended? What is the best time to do refinancing?

This post has been edited by radenoactive: Aug 24 2018, 12:21 PM

Just proving that the 4.85% p.a. rate is real. This is posted with my clients' permission, she wants everyone to grab this opportunity. Installment amount of RM794 for facility amounting to RM150,299.69 for 30 years tally with the calculated figure in the second photo. The rate is 4.85% p.a. for this client of mine.





This post has been edited by wild_card_my: Aug 24 2018, 07:07 PM

Again you miss the point.. No one is doubting the interest rates are real and or the maths doesn't add up.. Most know how to work an S.I calculator.. It ain't rocket science.. .. If I want to argue, I'd argue that the 4.8% rate is impossible to guarantee it for the next 30 years.. As BLR can go up or down and banks may at their discretion decide to hike the rates.. But I won't cuz then you'd go on and on and keep missing the point. Summarily, it's not an automatic for everyone. Cuz even if some sign up today for 4.85%, and tomorrow.. It drops to 4.7%.. Doesn't mean can just terminate and refinance at the lower rates. Cuz high chances, one will be owing the bank interest.. Now a couple years later and say principal is the bulk of monthly repayments over interest? And rates drop? Then yes, it's an attractive offer.. That's one of the points I was making. Fairly simple.

1. Mate, I thought you are done? You want to get serious or what about this? I mean like it is clear that you are the one missing the point. We started with the definition on refinancing, and now you went all tangent about it.

2. Refinancing your ASB loan that is in the low 5% to enjoy the current rates of 4.85% is beneficial to the borrower. That is the message that I am driving today. But you with all your lack of understanding mistook "refinancing" as a term exclusively used for mortgages. Refinancing is just to change the financier as per what Investopedia claimed and I quoted them earlier.

You got called out for your ignorance and is now trying to cover it up by asking something so dumb as "what will happen if one person refinances?". What do you expect will happen mate? I called you up again due to the incomplete question and as per what my professors said, incomplete questions are stupid questions. You tried to set me up with those questions but I pulled one better by calling you out - and the terms used were also confusing. You sound like someone who read a few Wikipedia articles and decided that he is now a scholar - this all shows in your questions.

3. Did you even know that BR moves based on OPR rates likely on the same quantum among all the banks? Doesn't seem that you do, because you don't even seem to understand the concept of BR + spread. The spread is fixed, but the BR WILL change over the years and no one is claiming that it can be guaranteed. No one said that the 4.85% rate will be fixed, only you claimed that it is, which shows your lack of understanding on how loans (mortgages, ASB-f) works. If you had you would not say what you did.

Arguing with you is like playing chess with a pigeon. All you are going to do is knock all the pieces down and shit on the board. Come on mate, get good, play some chess.

This post has been edited by wild_card_my: Aug 24 2018, 08:23 PM

Nah mate... nothing to be serious about.. Tis as they say.. opinions.. Noticed your edit and let me ask then since apparently you are the only who understands eh?.. Has it ever occurred in the past that BR moved up significantly that monthly repayments increased? Riddle me that.

Okay i loled at the pigeon reference. Guess you unaware that according to new research from a certain reputable American university, pigeons are able to comprehend abstract concepts of time and space in the same ways that elephants, monkeys, and humans can...

1. BR movement is beyond our control as consumers, but notice that clients who took their loans even a year ago would have their effective rate raised due to changes in the BR while those who are taking it now would have their effective rate on the lower side. That is the fact in this industry now, as one of my banks are offering 4.85% p.a effective rate, while people who signed up for the loans last years are paying 5.00% p.a ++ , as high as 5.65% as shown below



2. Like i said, do you even understand how the rates are quoted? The spread is fixed, while the BR changes over time, based on what you post, doesnt seem like you have a clue on how it works.

If Jake is getting a BR + 1 last year (at the time when BR was 4%) making his effective rate 5%, and a year later the BR for that bank increases by 0.25% making his effective rate 5.25%, it would be stupid of Jake not to refinance if currently the bank is giving new costumers a rate of BR + 0.75% (making the current effective rate 5%)

Staying with the current bank and he has to pay 5.25% p.a , refinancing it to a new bank and he pays 5% p.a. That is the difference of 0.25% per annum!. I dont know why some doofus would question the need to refinance to save 0.25% on RM200,000. That is RM500 just for the first year alone, and this adds up although the saving reduces over the years. But the cumulative charges would increase indefinitely.

I seriously have a feeling that the fact that you do not get this concept suggests that you either:

a. have never signed a loan offer before
b. oblivious to it

As a broker for mortgage as well as ASB-financing I have resources from clients as well as banks alike to back my assertions. These are not mere opinions, I help my clients save and make money; while you are treating it like a game. it is funny that you questioned that I am using anecdotes when I posted proof, numbers, and figures, and when you can't prove anything, you are saying "this is just opinion" or "don't be too serious", but only after I handed you your "behind". Come at me, bro, I don't lose because I am right.

This post has been edited by wild_card_my: Aug 24 2018, 08:39 PM

Haha... Let's go with your Jake then.. Would it still be stupid of Jake to not refinance if he's still owing significantly more than he borrowed in the first place due to the high interest rates and initial payments definitely go more to banks first (in the form of interest), before principal?... And it'd take say a couple months to a year of even more to balance out first..?

This post has been edited by voncrane: Aug 24 2018, 08:36 PM