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> ASB loan, worth to get it???

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wild_card_my
post May 16 2019, 12:35 PM

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QUOTE(nyemah_mulya @ May 16 2019, 12:30 PM)
Hi, is this before or after the Bank reduction rate?
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That is after. If I am not mistaken, CIMB increased the spread after the HQ lowered the BR. So the ones who signed up with CIMB at 4.9 is getting 4.75%, but the new applicants can only get as low as 4.9%

The current lowest rate for new applicants is 4.75% p.a.
nyemah_mulya
post May 16 2019, 12:39 PM

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QUOTE(wild_card_my @ May 16 2019, 12:35 PM)
That is after. If I am not mistaken, CIMB increased the spread after the HQ lowered the BR. So the ones who signed up with CIMB at 4.9 is getting 4.75%, but the new applicants can only get as low as 4.9%

The current lowest rate for new applicants is 4.75% p.a.
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I see, Thank you very much.
junclj
post May 16 2019, 01:09 PM

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Perhaps for me still stay with my current 20 years loans without cancel it to reapply a 35 years loans.

I am now aged 34, this year was my 5th years of paying my installment. Meaning that I still have 15 years to go. After 15 years I will be aged 49. However, I am planning to do early settlement at the 15th year. My ASB2 is doing in saving basis and planning to save up to RM100k in 10 years. Meaning that, when I reach my age 44, I will able to withdraw money from my ASB2 to settle up the rest amount of my ASB loan then I can get my certificate earlier. So start from 44 until my retirement, I do not need to worry about money. Probably will able to reach more than RM1m. Its enough for me to enjoy the rest of my life. I'm single, unmarried, don't have wife and don't have children. It's because I can't find a gf, I already 34 years old now. No gf, no wife and never planning to marry. Better just keep everything simple, my family is just my sisters and parents.

Many of you just look at the lowest interest rate. In fact, if you keep cancel and reapply your loan, the length will keep extend and extend. Originally, you may plan to retire at age 55 but now your retirement will extend to age 65 because you keep extend your asb loan period over and over again.

35 years for me is too long, RM200k for 4.75% in 35 years is RM410,760. RM200k for 4.95% in 20 years is RM315,600. You have to spend 15 more years to pay the extra RM100k interest to bank.
wild_card_my
post May 16 2019, 01:13 PM

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QUOTE(junclj @ May 16 2019, 01:09 PM)
Perhaps for me still stay with my current 20 years loans without cancel it to reapply a 35 years loans.

I am now aged 34, this year was my 5th years of paying my installment. Meaning that I still have 15 years to go. After 15 years I will be aged 49. However, I am planning to do early settlement at the 15th year. My ASB2 is doing in saving basis and planning to save up to RM100k in 10 years. Meaning that, when I reach my age 44, I will able to withdraw money from my ASB2 to settle up the rest amount of my ASB loan then I can get my certificate earlier. So start from 44 until my retirement, I do not need to worry about money. Probably will able to reach more than RM1m. Its enough for me to enjoy the rest of my life. I'm single, unmarried, don't have wife and don't have children. It's because I can't find a gf, I already 34 years old now. No gf, no wife and never planning to marry. Better just keep everything simple, my family is just my sisters and parents.

Many of you just look at the lowest interest rate. In fact, if you keep cancel and reapply your loan, the length will keep extend and extend. Originally, you may plan to retire at age 55 but now your retirement will extend to age 65 because you keep extend your asb loan period over and over again.

35 years for me is too long, RM200k for 4.75% in 35 years is RM410,760. RM200k for 4.95% in 20 years is RM315,600. You have to spend 15 more years to pay the extra RM100k interest to bank.
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Not a problem at all to make a full settlement at the age of 55. You do understand that even if you took a 35-year loan, you do not have the obligation to continue paying till that age, right? To close the account and stop paying the installments, all you have to do is to contact the bank to close the account and settle the outstanding loan balance. I do not have the capacity to do the maths here as I am mobile, but given current conditions or hte ASB returns, someone who took 35 years, save the difference between his installment and your installment as cash in ASB/ASB2, and makes a full settlement after 15 years, would end up with more cash-in-hand than you.

Another issue that I see people complaining is the tenure. But no one is complaining about the tenure for mortgages being as long as 35 years. Before 2013, the tenure was even as long as 40 years. Why are people ok with mortgages having long tenure while ASB-financing has to be limited to an arbitrary number of 20, 25, 30 years tenure?

As long as the interest rates are lower than the distribution rates, everyone should be good to go. The moment the distribution rates are lower than the financing rate, you always have the option to close the account. Remember, the asset value remain at RM200k while the the outstanding balance would always drop as you pay your installments

This post has been edited by wild_card_my: May 16 2019, 01:17 PM
Bora Prisoner
post May 16 2019, 01:15 PM

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QUOTE(junclj @ May 16 2019, 01:09 PM)
Perhaps for me still stay with my current 20 years loans without cancel it to reapply a 35 years loans.

I am now aged 34, this year was my 5th years of paying my installment. Meaning that I still have 15 years to go. After 15 years I will be aged 49. However, I am planning to do early settlement at the 15th year. My ASB2 is doing in saving basis and planning to save up to RM100k in 10 years. Meaning that, when I reach my age 44, I will able to withdraw money from my ASB2 to settle up the rest amount of my ASB loan then I can get my certificate earlier. So start from 44 until my retirement, I do not need to worry about money. Probably will able to reach more than RM1m. Its enough for me to enjoy the rest of my life. I'm single, unmarried, don't have wife and don't have children. It's because I can't find a gf, I already 34 years old now. No gf, no wife and never planning to marry. Better just keep everything simple, my family is just my sisters and parents.

Many of you just look at the lowest interest rate. In fact, if you keep cancel and reapply your loan, the length will keep extend and extend. Originally, you may plan to retire at age 55 but now your retirement will extend to age 65 because you keep extend your asb loan period over and over again.

35 years for me is too long, RM200k for 4.75% in 35 years is RM410,760. RM200k for 4.95% in 20 years is RM315,600. You have to spend 15 more years to pay the extra RM100k interest to bank.
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to each his own, but everyone knows (and has been discussed here extensively) to maximise profit take the maximum loan tenure.

and you do know that if you cancel a loan, all paid principal goes back to you.


This post has been edited by Bora Prisoner: May 16 2019, 01:50 PM
eeeglow24
post May 16 2019, 02:47 PM

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QUOTE(wild_card_my @ May 16 2019, 11:41 AM)
Betul, all my customers who jumped in with me back then are getting 4.6% now. It's crazy low; imagine still paying 5%~ and above previously compared to this.

This applies to all the banks. When you bank's  BR gets reduced, so will your effective rates. Those who were paying 4.85% p.a is now paying 4.6% p.a.
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Ya just noticed that they reduced it effective 15.05.19. However, will they reduced my monthly payment? Or I'll be paying the same and this would cause my tenure to be reduced?

Thanks.
wild_card_my
post May 16 2019, 03:04 PM

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QUOTE(eeeglow24 @ May 16 2019, 02:47 PM)
Ya just noticed that they reduced it effective 15.05.19. However, will they reduced my monthly payment? Or I'll be paying the same and this would cause my tenure to be reduced?

Thanks.
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It depends on the banks. For HLBB and CIMB for example:

a. if the differences between the installment between new and old rates is less than RM50, they will not have you change your installment - meaning your tenure will automatically be lengthened a bit

b. if the differences between the installment between new and old rates is more than RM50, they will send you notification to change your installment - your tenure will be as original
facktura
post May 16 2019, 03:32 PM

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My CIMB ASBf profit rate from 5.35% went down to 5.10% effective i dunno, this week eh?
wild_card_my
post May 16 2019, 03:34 PM

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QUOTE(facktura @ May 16 2019, 03:32 PM)
My CIMB ASBf profit rate from 5.35% went down to 5.10% effective i dunno, this week eh?
*
effective the day they reduced their BR, which was a few days ago.

edit: if you check your loan statement, you can calculate the total interest charged, you will see a drop in interest payable for this month and next month compared to, say, April.

This post has been edited by wild_card_my: May 16 2019, 03:35 PM
haziqnet
post May 17 2019, 09:00 AM

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QUOTE(nyemah_mulya @ May 16 2019, 12:30 PM)
Hi, is this before or after the Bank reduction rate?
*
This is after the Bank reduction rate
haziqnet
post May 17 2019, 09:11 AM

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QUOTE(junclj @ May 16 2019, 01:09 PM)
Perhaps for me still stay with my current 20 years loans without cancel it to reapply a 35 years loans.

I am now aged 34, this year was my 5th years of paying my installment. Meaning that I still have 15 years to go. After 15 years I will be aged 49. However, I am planning to do early settlement at the 15th year. My ASB2 is doing in saving basis and planning to save up to RM100k in 10 years. Meaning that, when I reach my age 44, I will able to withdraw money from my ASB2 to settle up the rest amount of my ASB loan then I can get my certificate earlier. So start from 44 until my retirement, I do not need to worry about money. Probably will able to reach more than RM1m. Its enough for me to enjoy the rest of my life. I'm single, unmarried, don't have wife and don't have children. It's because I can't find a gf, I already 34 years old now. No gf, no wife and never planning to marry. Better just keep everything simple, my family is just my sisters and parents.

Many of you just look at the lowest interest rate. In fact, if you keep cancel and reapply your loan, the length will keep extend and extend. Originally, you may plan to retire at age 55 but now your retirement will extend to age 65 because you keep extend your asb loan period over and over again.

35 years for me is too long, RM200k for 4.75% in 35 years is RM410,760. RM200k for 4.95% in 20 years is RM315,600. You have to spend 15 more years to pay the extra RM100k interest to bank.
*
You make asbf look complicated which actually its very simple. In asbf the longer the tenure the more profit to the customer. Its always ok to cancel the loan and reapply because you still earn the principal when you terminate early.

QUOTE(facktura @ May 16 2019, 03:32 PM)
My CIMB ASBf profit rate from 5.35% went down to 5.10% effective i dunno, this week eh?
*
Since yesterday 16/5/19.
eeeglow24
post May 20 2019, 01:17 PM

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QUOTE(junclj @ May 16 2019, 12:33 PM)
Just notice that RHB loan drop again from 5.00% to 4.95%, the latest interest rate for ASB loan for 240months.

[attachmentid=10248147]
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Your installment amount reduced?
blackseed202
post May 20 2019, 10:32 PM

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My MBB asb loan now shows rate of 4.6% but installment amount last month was the same. Will see next month's.
buggie
post May 21 2019, 06:54 PM

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QUOTE(junclj @ May 16 2019, 01:09 PM)
Perhaps for me still stay with my current 20 years loans without cancel it to reapply a 35 years loans.

I am now aged 34, this year was my 5th years of paying my installment. Meaning that I still have 15 years to go. After 15 years I will be aged 49. However, I am planning to do early settlement at the 15th year. My ASB2 is doing in saving basis and planning to save up to RM100k in 10 years. Meaning that, when I reach my age 44, I will able to withdraw money from my ASB2 to settle up the rest amount of my ASB loan then I can get my certificate earlier. So start from 44 until my retirement, I do not need to worry about money. Probably will able to reach more than RM1m. Its enough for me to enjoy the rest of my life. I'm single, unmarried, don't have wife and don't have children. It's because I can't find a gf, I already 34 years old now. No gf, no wife and never planning to marry. Better just keep everything simple, my family is just my sisters and parents.

Many of you just look at the lowest interest rate. In fact, if you keep cancel and reapply your loan, the length will keep extend and extend. Originally, you may plan to retire at age 55 but now your retirement will extend to age 65 because you keep extend your asb loan period over and over again.

35 years for me is too long, RM200k for 4.75% in 35 years is RM410,760. RM200k for 4.95% in 20 years is RM315,600. You have to spend 15 more years to pay the extra RM100k interest to bank.
*
Settling the loan was never on the agenda.

The concept here as discussed many times is the power of OPM, other people's money

If you settle... It becomes Your Money... And u lose that leverage
blackseed202
post May 21 2019, 11:40 PM

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QUOTE(buggie @ May 21 2019, 06:54 PM)
Settling the loan was never on the agenda.

The concept here as discussed many times is the power of OPM, other people's money

If you settle... It becomes Your Money... And u lose that leverage
*
So in terms of using leverage as maximum as possible. What's the most profitable way to buy and sell the loan again and again? Assuming all other interest rates remain the same? And assume we don't have have any other urgencies to use the money?
wild_card_my
post May 21 2019, 11:49 PM

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QUOTE(blackseed202 @ May 21 2019, 11:40 PM)
So in terms of using leverage as maximum as possible. What's the most profitable way to buy and sell the loan again and again? Assuming all other interest rates remain the same? And assume we don't have have any other urgencies to use the money?
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1. Consider the fact that the minimum "loss" would be 1 month's worth of the year's distribution If you take 7% as the acceptable distribution rate, you are looking at losing 1/12 x 7% x RM200k = RM1,1667. RM200k capital is fixed because when you do the refinancing, only the RM200k is "transactioned", all other monies in the ASB/2 account would remain earning distribution for the month of that transition.

If the rates are the same... it is a difficult question to answer because when you refinance at the same rates, the biggest advantage is only getting your "capital back". Check point (3) below. But if the rates are changing, and there are better rates by about 0.3% for example, you would save about 0.3% x RM200k (or less, depending on your current outstanding balance) a year by refinancing, that is RM600. In 2 years you would have recovered the loss discussed in (1)

2. Second consideration would be the maximum tenure, this much is clear. Maximum tenure is 35 years or till the age of 65. Once you are 30 it should probably be the last time you should refinance, unless your current financing is lower than the maximum collateral limit of RM200k anyway.

3. Third consideration would be the amount of capital that you would get back. This capital-return is just your money that was kept by the back and you would have earned nothing from it. If you had refinanced you would have realized this capital and would be able to reinvest this into ASB/2 depending on the availability of your increased softcap.
shirroe
post Today, 09:15 AM

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Can we ourselved make loan for our son/daughter age below 18 to maximise the account?
wild_card_my
post Today, 09:45 AM

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QUOTE(shirroe @ May 23 2019, 09:15 AM)
Can we ourselved make loan for our son/daughter age below 18 to maximise the account?
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Nope. Those under 18 cannot enter a contract in Malaysia. A joint loan application would still reauire them to sign and agree to enter into an agreement
shirroe
post Today, 10:03 AM

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can we make loan asb 1 and asb 2 at the same time?



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