They wouldn't be able to disburse if no quota which means your loan wont start until its disbursed. If I'm not mistaken.

Not necessarily. I have personally done mortgage cases where the pledging was only for 1 or 2 years. I did the mortgage, but the client had to go to the bank and do the FD pledging. It doesn't make sense for the FD to stay there for all the 35 years of a mortgage tenure. There isn't any needs to threaten the bank, as long as you know your rights and what you have got yourself in to before signing on the dotted lines.

Yes you could. Apply first, then wait for the quota to be opened for that bank, in this case it is MBB, at 4.9% for RM100,000 loan

Another bank has quota fully opened, 4.85% p.a

Loan that is approved will be available for a while, and it will be disbursed as the quota is available. You would not be paying any installments until the money is disbursed

This post has been edited by wild_card_my: Sep 7 2018, 08:42 AM

If the quota still not available after sometime, what then?

Thanks for the reply and I'm aware of all of the above. My question is if after the "2 to 3 months" and still no ASB2 quota, what then?

The financing auto-cancels. In that sense, "nothing" happens. There would be records of application and acceptance in the CCRIS, but it will not be be shown as disbursed. Then you can reapply to get back into the queue. You can do so with the same bank or other banks. These are a few concerns pertaining to the auto-cancellation and queue:

1. The bank cannot hold the financing for too long because they need the fund for other things (like mortgages, HP, rolling, etc.)

2. The quota is determined by the market and ASNB; when the public redeem their financed units and when ASNB decide how much of the units are to be opened; this process and limitation are beyond the purview of the banks, we can just wait and see.

This post has been edited by wild_card_my: Sep 7 2018, 10:03 AM

And there would be no cost incurred.

I do not remember. I need to check on this. The usual payable fees are RM50 for the endorsement from ASNB and RM10 for stamping.

But I will have to get to you on this, that is in the event that the financing is auto-withdrawn, would these fees still be payable. I need to verify this to avoid any misunderstanding

Please do so. Thank you in advance.

This is from my partner in MBB. Use this info with a grain of salt, because I want you to verify this with MBB officer upon application as well.

Thank you for the info. Per you advise, i would certainly add a few more pinch of salt.😁

Just to clear things up:

Some banks are able do refinancing ala-refinancing of properties. This is advantageous because:

1. you DO NOT need to cancel your current financing until the new financing is approved
2. you will now be able to time the redemption of units from the old financing to happen very closely to each other to avoid losing more than 1 month's worth of dividend (no guarantees from my side though)
3. Obviously, the refinancing is done so you can enjoy lower interest rates than the ones you are currently paying for

The current best rate is 4.85% with short-term and half-amount insurance cover, and 4.9% without any insurance taken-up

Just thought that I'd let everyone know that we have discussed privately and would be dialing down the intensity of our exchanges and to avoid personal attacks. Discussions related to ASB and its financing will continue, but with more civility in them. Lets keep the mods out of this.

Guys, this is ASB financing doc I took 5 years ago. I choose RM50k loan, RM299 installment per month for 25 years. At that year, the bank's KPA is 6.6%.

Recently after reviewing the doc, I would like to confirm with you guys, the RM145,851.51 is justifiable with the loan condition?




This post has been edited by monoikhwan: Sep 11 2018, 12:03 AM

Good afternoon

1. This is Islamic loan, with Islamic loans, everything has to be "clear" - well to some extent. It means the maximum amount that you would have to pay in the next 25 years is clear. This amount is calculated based on the 10.6% p.a capping/ceiling as per the LO

2. This figure would not change because whatever changes made to MBB's KPA (English: Base Financing Rate) would still make your effective rate lower than the 10.6% capping mentioned above. Your rate is quoted as KPA - 1.65%, with MBB's KPA at 6.9%, your effective rate is currently 5.25%

3. If you need to verify what I said, take a "loan/mortgage calculator" (I recommend this one) and key in RM51,072, 10.6%, 25 years) and the total payment will be RM145k. Any deviations visible are due to the differences of actual dates of the financing, internal interest rate that may be lower than presented, and other factors that are not presently mentioned in the LO.

4. You are currently paying 5.25% p.a. and not 10.6% p.a. It will very UNLIKELY for you to end up paying RM145k in total because in the past 5 years, you have been paying your installments based on rates lower than 10.6% p.a, so even if suddenly the OPR is increased by BNM and MBB responds by increasing the BFR in tandem, and you start paying at the max 10.6% p.a rate, you would still NOT end up paying anywhere close to 145k in total.

This can be a little much especially when I do not get to explain it in person with pen and paper, but I hope you get the idea. As mentioned, you are paying 5.25% p.a, while the best rate available is 4.85% p.a now - and so I might add that it may be high time to refinance to get better rates

This post has been edited by wild_card_my: Sep 11 2018, 12:52 PM

wild_card_my

could you suggest which bank to get loan for asb? as im thinking to take 100k for loan..not sure if my loan would be approve with basic of 2.5k..

This post has been edited by wokies: Sep 18 2018, 11:26 PM

This is not the right place to discuss housing loans.

https://forum.lowyat.net/topic/2759418/latest
https://forum.lowyat.net/topic/3437581/latest

But just a quick one: RM100k loans can be entertained by the banks although admittedly some bankers may not want to layan because of the paltry amount. The basic salary of RM2.5k should be enough, as long as you do not have too much outstanding commitment.

You are welcome to register at my talk this weekend to get a basic grasp of property financing

cimb promo 5.05% is still on going. I'm aware there are some bank which provide lower rate. Its yours to decide.

the asb loan rate is effective rate or nominal rate?

Effective rate.

Most reducing balance loans in Malaysia are now based on a variable rate. To calculate the effective rate for this, you will be quoted something like this: BR + [spread]

BR is the bank's individual Base Rate (BR) or Islamic Base Rate (iBR). These number are unique to every bank and changes every 3 months, if any. The spread is fixed throughout your loan tenure.

Your Effective Rate is calculated as: BR + [spread]

So when I said, the best rate in the market is 4.85%, it could be a BR (4.0%) + 0.85% or BR (3.2%) + 1.65%; both of which equates to 4.85% which is what matters

how much loan to get that rate?..any other bank that can get lower rate?..cant find any for hong leong..do you know?

min 50k.
also you must have cimb account and apply for autodebit during application. (this autodebit can be cancel after the loan is approved)

sorry i dunno what is the rate for hong leong bank.

This post has been edited by haziqnet: Sep 19 2018, 10:23 AM