RHB

I am happy to inform that I got the first RM200k approval for the new bank's 4.9% WITHOUT insurance and/or takaful

This is the best time to refinance especially if your rate is higher than 4.9%

No, not that I know of. Only ASB and ASB2 from my panel of banks so far

Nope. For ASB Reducing Term Takaful (ARTT) and Mortgage RTT (MRTT), once bought using the bank's financing, the policy would be ABSOLUTE-ASSIGNED to the bank. this means the bank OWNS the policy, and the only changes that can be made are to sell the policy back to the insurance/takaful company. This can only happen when you make a full redemption of the loan, of which the bank will perform a force-sell of the policy.

This is important especially when it comes to refinancing your mortgage or ASB loan, if you do take the takaful/insurance policy, be prepared to lose some of the value due to the commissions payout to the bank (and then you would have to repeat the process when you refinance)

As such, for ASB loan, I would recommend to skip the ARTT

This post has been edited by wild_card_my: Aug 9 2018, 12:18 AM

Well, it might just be time to refinance. Best rate in town is 4.85% (with 5 year insurance), 4.90% without insurance

This post has been edited by wild_card_my: Aug 9 2018, 12:22 AM

it doesnt matter actually. because ASB "refinancing" doesnt involve any lawyers, stamping duty, valuation, etc.

No moving costs at all. We can refinance the outstanding balance she has with the bank and limit the tenure to 29 years and she would still save more money than if she had stayed with the current, higher interest financing

yes you can. As a broker I offer the services for all banks at NO EXTRA CHARGE for both ASB and ASB2

Currently at 4.85%, it is the best rate in town. 30 years tenure, insurance NOT COMPULSORY (but rate jumps a little to 4.9% which is still better than any other banks)

Yes it is still open. Disclosure bank only upon submission

Yeah if you terminate:

1. 200k debt will be closed using the current ASB unit balance.

2. RM10k insurance will have some form of cash value. I always recommend taking NO ARTT/ARTA and then opting for outside insurance if you feel like you need one

To the mods, the ban on my being anmortgage broker is limited to the Mortgage threads right? I dont know if that limitation is applied on this thread

yes, it is possible to terminate ASB-f, as long as there is no lock-in periods.

ASB agents dont really care about the customers future needs as long as they get to sign you for their services.

As already known, I am primarily a [redacted] as well as an ASB broker, so my approach to your financing needs are typically different

It is in the low 4%, but the effective rate is 4.85%. It is not Maybank by the way

This post has been edited by wild_card_my: Aug 12 2018, 10:49 AM

As for the penalty you need to check your LO. But with my banks that I know of, there isn't any penalty. I can't speak for your case though in fear of misleading you. best way is always to check the LO for the terms, because different banks have different products

release letter depends on the bank and officer processing your application to close the account.

that I know of: MBB, CIMB, RHB, HLBB, AMB, if I am not mistaken, Affin does too

It is not so much as a "refinance" like it is with a mortgage refinancing. But it is to close the account with the previous bank which is giving higher rates than the current market rate, and opening a new account with a new bank that is giving the lowest interest rate

For example, if we look at this person' interest rate, he would benefit by closing his accounts with the bank that is currently charging him 5.6% p.a and 5.45% p.a on 2 ASB loan accounts. He applied to open a single new account with a different bank that is giving him 4.9% p.a. interest. (keep note though, the minimum loan amount to get this rate is RM50k, of which he applied for higher than that)

It is.

As per the examples I have shown above... that is the difference of about 0.55% and 0.7%. For every 0.1%, every RM100,000 loan, you are gifting RM100 a year to the bank.

So imagine in the first year, your loan outstanding is RM200,000, the difference between your current rate and the new rate is 0.7%, you are easily losing RM1,400 just because of in action. And that is just for the first year, this repeats all the way (with reducing amount of outstanding) for the next 30 years

Current best rate with takaful is 4.85%, and without takaful is 4.9%

Let me know if any of you guys would like to make changes to your current ASB financing

This post has been edited by wild_card_my: Aug 15 2018, 01:23 AM

For 200,000, 4.9%, 30 years tenure, the monthly installment is: RM1056/m

The difference is quite huge, check your current installment - it would have changed if you had taken the loan a few years ago due to changes in the OPR and subsequently your BR. You would have to pay more now than you had to a few years ago. maybe it is time to refinance?

My suggestion is do not look at the past, and consider changing the future.

Based on the repayment below, you would end up paying extra RM84 a month for the next what, 20 or so years?

Also part of the reason I tell my clients not to take ARTT, but to take life insurance if you really feel that you need a form of insurance

Takaful financing follows the ASB financing rate, essentially, you are borrowing more than 100% of the ASB value.

The ARTT quotation produced has it "own financing rate" but that is there only to assume the rate of repayment of the outstanding loan, not as its own financing rate.

Hope this helps

1 month's worth if you time it right.

Dividend loss: 200k * 1/12 * 7% = RM1166.67

Interest saved due to no disbursement during the same period: 200k * 1/12 * 4.9% = RM816.67

The difference is RM350

How much is the difference between 4.9% and say, 5.2% on a yearly basis again? And that repeats every year for the next 25, 30 years. You can do the numbers.

You need to settle with the current bank first, then reapply for a refinancing from the bank that is offering the lowest rate in the market, which is about 4.9% that I have gotten for my clients


CIMB has 4.3% promo? I havent heard of this, can you link any sources?


Can, my clients settled his MBB loan in about 10 calendar days time

As I mentioned, it can be done, as my clients settled the process in 10 days time, plus about 2 weeks for new application for the new loan

At RM1,000 a month you can apply for RM188,500 net (no insurance) at 4.9%

5 post quotation limit

2 things that I will mention:

1. ASB/ASB2/TH dividends can be used as part of your income for you mortgage application. However, the banks will want to look at the dividend statement, which means if you take ASB2 now you will only get about 4/12 of the total dividend declared for ASB2

but wait, ASB2 fiscal year ends in March 31, and if I am not mistaken, the dividend is decalred on the 1st of April, so if you invest using financing for ASB2, the dividends will be good for September 2018 till March 2019, which is 7/12 worth, which is not bad

2. The commitments for the ASB-financing will start right away, it will be calculated as part of your banking commitments

I help people get financing for both properties (mortgages) as well as ASB (ASB-financing) so this is right up my alley

This is not the place to discuss it but a little tangent is ok i guess. I noticed the house prices has been going down for years now, people who bought their properties 5 years ago are not seeing the upswing. Just thought that I mention properties are not the recession-proof investments that many property guru purport them to be all this while.

Not in the sense that most people are familiar with but I am technically correct and that is the best kinds of correct. here is the entry for "refinance" in investopedia

A refinance occurs when a business or person revises the interest rate, payment schedule and terms of a previous credit agreement. Debtors will often choose to refinance a loan agreement when the rate environment has substantially changed causing potential savings on debt payments from a new agreement.

so we are fulfilling "revises interest rate", "payment schedule" (increasing tenure), and "causing potential savings on debt payments from a new agreement"

So we should agree that it is in fact, refinancing. I do mortgages as a living, so I understand that most people view refinancing in mortgages perspectives, when you may get the cash-out as well as having the process done in one swoop (the new bank will settle the outstanding from the previous bank). But that is, in fact, misleading. Refinancing is just that - to re-finance

Thank you

This post has been edited by wild_card_my: Aug 23 2018, 01:59 PM

I agree, I would too.

ASB/ASB2 dividends are net. You dont have to think about anything else, unlike houses.

At time it is cheaper to rent than to "buy" a house. Quotation marks because when you buy you don't own the houses, you give it to the bank as collateral. I do both mortgages and ASB financing and I would be the first to claim that the house is not a fool-proof investment.