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> ASB loan, worth to get it???

wild_card_my
post Yesterday, 11:12 PM

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QUOTE(JJKTP @ Jan 16 2019, 11:07 PM)
I guess i said it wrongly. I mean what is the known/proven max if we just let the money in the account untouched.
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Wow... err... I have never thought of this. There must be one, a person who has put the maximum amount in the very beginning and allowed all the dividends to accumulate untouched. Theoretically it is easy to find out, we have all the data on the returns (dividends and bonuses), but I doubt that person would be stepping in to confirm their balances.

However, if you look at this figure, "plenty" of people have more than 500k units in ASB, which is quite impressive. For someone with RM500k units, it would only take 10 years of 7% dividend for it to grow into RM1m.

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This post has been edited by wild_card_my: Yesterday, 11:16 PM
cucikaki
post Yesterday, 11:28 PM

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QUOTE(wild_card_my @ Jan 16 2019, 11:04 PM)
1. Is there a reason as to taking the bank-attached insurance? The problem with taking insurance with the bank is that it would be absolute-assigned to the bank. The moment you decide to cancel your financing, the bank would force-sell the insurance, and you won't be able to carry it over to a new financing

2. Given that you have decided to "refinance", you now know that rates can go up (or down) over time, as the BR/BLR goes up (or down). Having to go through this once, have you not learned the lesson that it may be better off that you take ASB-financing WITHOUT the insurance?

3. There are plenty of insurances out there that you can take up that would not be attached/absolute-assigned to the bank, if you so feel that you need to get an insurance to "protect" against the liability in the even of death and/or permanent-disability, then go ahead an take an insurance policy externally from providers out there.

4. The best rate in the market is 4.85% p.a., not 4.9%. At this rate, a 200k for a 30-year term, the monthly installment is only RM1,058/m, much lower than whatever you quoted up there. This is with a minimal insurance of about RM400 (depending on your age), which is taken just for the sake of getting the 4.85% (lest, it would be 4.9% without insurance at all, bringing the installment up to RM1,062/m)

5. With some banks, there is no need for you to terminate the current ASB-financing when applying for a new one. This is how I would do it: apply for a new ASB-financing, let the new bank know that you are refinancing/replacing your current ASB-financing, the new bank will ignore the commitment for the current financing. Once you get the new financing approved, simply cancel your current financing with the current bank so the new bank can disburse the new funds into your ASB account.

6. Whether or not you should refinance is your call; I would definitely be biased due to the nature of my business, but I speak with numbers, facts, and figures. When you are in doubt, all you have to do is to calculate, come out with your figures, and decide for yourself.
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1. The insurance under RHB is Takaful Malaysia. I did ask whether I can opt to get external insurance so that I could still continue with the existing policy whenever i terminate my asb loan in the future, and take a new loan so that my premium wouldn't so high in the future, however, the banker said that I must take insurance, and the minimum period is 5 years. Is this true?

2. Yes i am aware of that but at least I am securing BR +1.00% from RHB, as opposed to my current rate of BLR - 1.65% under CIMB.

3. Takaful Malaysia i assume is an external party of RHB? Cause the banker is not using RHB Insurance for my ASB Loan.

4. I try to negotiate with the banker to get me 4.85% as I've been following this thread for 2 weeks and I recall your post stating that the best rate is 4.85% as my whole family is switching from CIMB to RHB. The loan value is close to $1mil. However, the best offer that she could offer is giving us 'bonus' of 0.1% of the total loan amount, at least there's something rather than nothing.

I assume RM400 insurance is based on 5 years insurance period? My new insurance under Takaful Malaysia is RM6,317 as opposed to the one under Sun Life (CIMB) is RM5,164 for period of 30 years. Yeah I would go for insurance just in case of TPD/Death, as least there's some guarantee amount for the family left behind + any life insurance premium taken up.

5. Yeah, I've submitted my docs to RHB and my loan with CIMB is still ongoing.

6. I've done some basic calculation (not taking into account present values, etc, etc), and I've come to conclusion to terminate and change to another bank with lower interest rate. As at this rate, 0.55% difference in interest rate is just too much.

Just would need opinion of someone that are expert in this field so that I would not think 'am I making the right choice' every night. Ahahaha
wild_card_my
post Yesterday, 11:37 PM

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QUOTE(cucikaki @ Jan 16 2019, 11:28 PM)
1. The insurance under RHB is Takaful Malaysia. I did ask whether I can opt to get external insurance so that I could still continue with the existing policy whenever i terminate my asb loan in the future, and take a new loan so that my premium wouldn't so high in the future, however, the banker said that I must take insurance, and the minimum period is 5 years. Is this true?

2. Yes i am aware of that but at least I am securing BR +1.00% from RHB, as opposed to my current rate of BLR - 1.65% under CIMB.

3. Takaful Malaysia i assume is an external party of RHB? Cause the banker is not using RHB Insurance for my ASB Loan.

4. I try to negotiate with the banker to get me 4.85% as I've been following this thread for 2 weeks and I recall your post stating that the best rate is 4.85% as my whole family is switching from CIMB to RHB. The loan value is close to $1mil. However, the best offer that she could offer is giving us 'bonus' of 0.1% of the total loan amount, at least there's something rather than nothing.

I assume RM400 insurance is based on 5 years insurance period? My new insurance under Takaful Malaysia is RM6,317 as opposed to the one under Sun Life (CIMB) is RM5,164 for period of 30 years. Yeah I would go for insurance just in case of TPD/Death, as least there's some guarantee amount for the family left behind + any life insurance premium taken up.

5. Yeah, I've submitted my docs to RHB and my loan with CIMB is still ongoing.

6. I've done some basic calculation (not taking into account present values, etc, etc), and I've come to conclusion to terminate and change to another bank with lower interest rate. As at this rate, 0.55% difference in interest rate is just too much.

Just would need opinion of someone that are expert in this field so that I would not think 'am I making the right choice' every night. Ahahaha
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1. The banks are not allowed to force cross-selling to the customers. If customers want to take mortgage, they can't cross-sell insurance/wasiat. Likewise ASB financing. Likely it is the banker/his-team that is doing this. I do not condone anyone to put sand in other people's rice bowl, but it is important that people know about their tactics to increase/fulfil their KPIs (yes, insurances are part of their KPI on top of the mortgage/ASB-financing)

2. A broker's position is that he is able to offer any products from any banks; but since 4.85% is the best rate, I do not know why one would go for a higher rate (even at just 0.05%) - unless you are highly comfortable with that bank's banking environment. Even then, it's not like you need to login to the bank's portal to make repayments for the loan

3. As per BNM's regulations, insurance companies that are partnering with the banks to provide insurance coverage for the banks' customers CANNOT be owned by the bank. As such we refer them either as sister companies or partners. Etiqa is not owned by MBB, likewise Sunlife is not owned by CIMB. Takaful Malaysia is a partner for RHB, providing insurances for RHB's customers (they pay commissions to RHB for driving businesses to them).

When I said unrelated, I meant it in the form where the policies you buy from these insurance providers are NOT absolute-assigned to the bank. If you really want to get an insurance for your policies, it is best to take one that is ATTACHED TO YOU as a person. Where you can refinance your ASB-financing over and over again without affecting your insurance coverage.


Tucker Crowe
post Today, 10:01 AM

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QUOTE(cucikaki @ Jan 16 2019, 10:48 PM)
Dear all sifu,

I need your guidance.

I have ASBF with CIMB, at which the rate now is 5.45% - i know it's very high.

Financing amount: RM200,000
Start Date: February 2015
Tenure: 30 years
Monthly payment: RM1,096 (including 30 years insurance)
Initial interest rate: 4.95%
Current ineterest rate: 5.45%

I'm planning to switch to RHB - currently offering 4.90%

Financing amount: RM200,000
Start Date: Still considering
Tenure: 30 years
Monthly payment: RM1,094 (including 30 years insurance) - calculated by the bank officer who submitted my loan.

Yes the difference in monthly installments are not that much, only RM2 per month, however, the difference in the interest rate between my current CIMB and RHB is 0.55%. That's a lot!

When i approach CIMB, they say they unable to change my current interest rate, and the only way is to terminate and take up a new loan. I asked the banker about refinancing my current ASBF, however, she said cannot? Is this true?
They also said that the difference in monthly installment is not huge, but, excuse me.....

Even though my monthly installments have not change since 2013, but I believe that the non-increase monthly payments would have affected my principal portion of RM200,000 at end of my 30 years loan tenure - perhaps it could reduce up to RM165-170k.

So hence, i decided to terminate my current one and start with a new one. Am I on the righteous path?

Thank you.
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1. the loan is 4 years old already
2. interest diff of 0.55%

Easy decision for me.

Cancel. Take new loan. Put the additional reimbursement fund into ASB2 (or ASB3 if full).


wild_card_my
post Today, 12:50 PM

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Just thought I'd share. This conversation took place today. It used to be that it took 10 days for this bank to cancel and redeem all units, but now it takes 17 days, the delays may be attributed to most people cancelling their loans this month after the dividends. Still acceptable compared to other banks.

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This post has been edited by wild_card_my: Today, 12:55 PM

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