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
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