People want to invest their money on this ASB Loan right? Minimum for this loan is 30 years?

Maybe the way im thinking is different, I don't want to invest "loan" with my money, invest mean you are ready to lose it all or profit, and I don't have 1.2k every month to save up but with 300 per month, is affordable for me for 30 years i bet can get more than 200k on longterm public mutual.

Just my 2 sen.

I wonder how much the asbf agent received the commission from the loan.

is there any probability for asb dividend to be better in the future?

Thank you sir...

What is formula you using to get (B)? The balance after 1 year.

Cimb still got 5% interest for asb2 loan? I have asb loan from cimb too

should i cancel my asb loan?

currently i have 122k cash in my asb, and another 70k loan. Been paying for about 4 years plus already with monthly installemtn of RM417.

would it be better if i save RM5004 (1 year installment) and put it in my asb directly instead of paying the loan on top of the yearly dividend from the 122k?

from my calculation, i would get more 'dividend' (dividend + RM5004) every year if i do this, but i would get more in my account at the end of my loan tenure if i continue servicing the loan

But what if i cancel the loan lets say this year or in next 3 years, etc?

25 years

122k is my own money that i can take out anytime. 70k is the loan i took in 2012.

got insurance

32 this year

own money

What i meant was, is it better if i cancel the asb loan, but continue putting RM5004 (equivalent to what i pay every year to service the loan) into my asb account every year instead of continue with the loan? Assuming i keep on depositing every year for another 20 years

Thanks, informative post
What I learn here is,
Assume loan 200k, pay monthly for 3 years. Stop and cancel loan, ask bank to disburse amount of remaining, let's say 36k

So at the same month, apply maximum loan again which is 160k example (200k -  36k + dividend) and continue paying for 3 years.

Repeat.

Is this what I suppose to do?

Whole tenure of the loan. 25 yrs. Reason I ask is because earlier there was mention that we get return from insurance.

Also it seems conventional loan got early exit penalty?

Hey Bro PrincZe, I think you've gone a little astray in the concept. Let me try to explain or maybe bro Haziq can explain better in figures 

But firstly, what does the 36k represent?

Anyway, let's set the scene.... so you take 200k loan and you pay 1k monthly for 3 years. Assuming @ 7% dividend, you would have 245k in ASB by now made up of 200k sijil pledged to the bank and 45k of earned dividend in cash. You've paid 36k in installments and you have 27 years left in your tenure. Your outstanding owed to the bank will be less then 200k but that's not important.

Clear on the scene above? Ok now what do you do?

On the 1st of the next month apply to terminate the current loan which has 27 years left and immediately re-apply the loan for 200k again for the max tenure of 30 years. Don't worry, the bank officer should be used to this procedure of terminate/re-apply. Only thing is that you have to make it clear that they (the bank) have to disburse the NEW loan within the same month which could be very frustrating. I'll explain why later.

What happens when you do this? the bank will dissolve the 200k sijil and settle your existing 27 year loan. This leaves you with only 45k dividend in cash in your ASB. So for roughly 2 - 3 weeks until your new loan is approved and disbursed, your ASB will only have 45k in it. Then the bank will do their due diligence and process your new 30 year loan application and if all goes well, before the end of the month will put back the 200k sijil into your ASB making it 245k again

So where do you stand after this whole process? Your loan is extended back to 30 years. And you have 245k in ASB (200k sijil + 45k cash) ready to earn you that compounding interest at the end of the year. And you continue to pay for the next 3 years before repeating the process. And as a bonus, you get back 3k in ammortization which you can spend to get that new iPhone/Samsung to reward yourself for being so disciplined in making those monthly payments!  

Bro haziq, correct me if I'm wrong please.

If you are terminating/reapply, the 45k no need to take out right? only if applying first time loan need to take out.

So what you are saying is if I had 245k cash in ASB, no loan (for simplicity sake). If I wanted to take a 200k loan I need to take out the full 245k and put elsewhere? Then my ASB will be left with only 200k? If that's the case, everytime I terminate and reapply, I will be back at square one with only 200k and compounding interest is non-existent.

With due respect Bro haziq, I believe can just take out 200k and leave 45k inside. So when the bank approve my loan, and put back 200k sijil I will have back 245k...(200k sijil + 45k cash).

If you apply loan, the bank will take sometime to disburse the loan before instalment payment, you lose the one or two months dividend depending on how fast the bank disburse the loan. Also the dividend will only  commence upon paying the instalment and not upon disbursement of the loan by the bank ?

If you apply loan in Nov, you have to move all the fund out from asb in Nov, so no dividend will be paid in Nov?

So if take out completely from asb to facilitate the loan, then there will be no dividend for Nov, is my interpretation correct?

Bro, dividend is given by PNB and nothing to do with the bank installment. All PNB cares when they calculate the dividend is whether the money is in at that point in time. So it is at the point of disbursement.

So having said that, you can push the bank to disburse within the same month. Usually you apply first, then the bank will tell you that they are ready to disburse and request you to empty the account. So it lessens the risk. Just make sure all done by month end cause that's when they calculate.