Yes it should be. Unless the banks specifically say they will not accrue any interests during the moratorium. From what I am reading, they only said they will not compound the interest, but interest, by default of the LETTER OFFER THAT YOU SINGED, should accrue on a daily basis, as per daily-rest interest calculation method

RM0.00 RHB: Your loan/financing instalment will be automatically deferred for 6-mth. To opt out, reply RHBOPTOUT to 66300 by 5/4/20. FAQ @ rhbgroup.com/s/COV

For RHB

your financing interest is based on BR+[spread] right? As the bank reduced their BR, your interest is also reduced

The BR is affected by a lot of things, including the country's economy; ASB dividend (Actually it is called distribution) is also paid according to the country's economy. So your financing interest rates would move in tandem with the ASB distribution.

If you are taking the moratorium, it is a good thing.

which counter is that if you do not mind me asking?

also... Maybank RM4 ALL IN. Liquidate everything. hahahahahahhaha

In general, i would advise keeping cash in hand in the next few months. If everything is fine and dandy, you would have the option of paying the accrued interest, continuing the moratorium and extending your tenure by 6 months (or more, depends on the bank), etc.

For RHB for example, they claim that the extension of your tenure would be limited to just 6 months and no increment of installment? Does that mean they are not accruing interests? Sure, that's how I read it. But as it is, even if they do like other banks, it is still best to keep your cash in hand and expand your options

grim times ahead. Make use of all the facilities available to you, even if you can afford to pay the installments anyway

For most banks, any loans disburse after 31st March would not qualify for moratorium.

Answering for the benefit of those who genuinely wonder about this

It depends on the bank, you need to check and read the banks' own t&a for the financing.

This applies even to mortgages, not all banks would consider the advanced payment as part of capital payment

some banks promote their PF as fixed rates, but are in actuality based on variable rates. For example, Bank Islam. Do check your LO and update here, could be an interesting case study

That sounds fair. I don't remember what your financing was.

Long story short, as long as the financing rate is lower than the distribution rate, you would be making profit.

The problem is predicting the results to favor you. So far, it has never failed - and I understand that past results do not guarantee future results, but it is a good benchmark.

While I cannot force everyone to subscribe to ASBF, I can invite you to look at all the missed opportunities of the past. You can only decide for yourself

Sorry for those quoted here from other threads, just putting my points across, i don't mean any harm

None that I know of. the problem is not the FIs themselves, but the source - ASNB. They are not giving any financing quota to any FIs for financing. If you have been depositing cash into ASB2 funds you will also notice that sometimes you can't get any units since they would be out of cash quota as well. That's how "over subscribed" the funds are

And we have the non-bumis trying their best to "fish" for RM1,000 worth of units at a time, when they get it they will cheer happily! And here we have people casting doubt about ASNB funds' viability. If the non-bumis were allowed to subscribe to ASB, the fund would grow to a few Billion in no time - they hate us for it, and they are disgusted with out lackasadical attitude towards this opportunity



Ie been an avid forummer here, and my style is a little different than most. I just share what I know, and people will send me messages on whatsap. Usualy these people are not even those who reply on the forums - they are the by standers, they dont even have LYN forum accounts

I am doing ok if I can say so myself. ASBF is just one of my five core businesses, all making money.

Actually I have an identity crisis, until recently I do not know what to call myself. Ive settled with "Insurance Agent" lately, despite its negative connotations. But whatever la

People have been posting over and over again, that those who invested using cash lost out to those with financing, with real data as we look back at past results. Real distribution and financing rates (for example, Maybank ASBF) for the past 10 years.

You just ignore the evidence presented to you like always.

There are a few of them, essentially you can look at a term insurance that may cover up till the age of 70, since your ASB financing and mortgages can go to 65 and 70. No point taking whole life in my professional opinion, because past 70 years old, you should not have any debt as you are way past retirement.

Take the moratorium. Keep you cash and deposit into ASB3

Sage? Nothing sagey about it. I simply left the bank and landed on my feet with the experience that I have. Started my own business in mortgage and asbf since it was the closest thing to what I was doing as a Relationship Manager serving high networth clients

Joined insurance/takaful three years ago. In any case, many people can learn from the rich. Rich people take loans even when they have the cash to buy or invest outright. Loans are also considered as leverage, leverage is also known as gearing

When you are dealt a good hand, you bet the house. You can do it with your measly RM2k that you spared each month or you can take the financing.

P/s i joined Prudential only three (3) years ago, managed to buy a German marque in January with that income. If any of you wants to help yourself with a side-career path feel free to ask

There are plenty of things to consider when taking up financings, but in general you would insure the paymaster when he's taking up a loan - that's where I come in (again, that is after I talked to them about mortgages and/or ASBF)

Vocrane is a "financial guru"? Practicing (commission-based/fee-based) or for-fun only?

I noticed people who claim to have made it would give advice based on "my way or the highway". Their advise are based on their very limited personal experience and would take personal offense when others contradict or refuse them

That's the difference between practitioners vs someone doing it for his own on his spare time. I have a business (consultancy) to run, and all my clients have different backgrounds, coming from higher-end B40, M40, and T20, you name it. So when I go through their finances I have to consider their current situation such as their family, commitments, aspirations, etc

There was another old guy in Kopitiam who claimed to have made it. Gives same types of advice, calling everyone that doesn't adhere to his boring life (don't spend money of expensive cars, etc) to be doing it wrong. He was not a practitioner but felt equipped to churn out advice based on his singular experience

This post has been edited by wild_card_my: Apr 15 2020, 08:34 AM

Properties are illiquid, and it is very high big-ticket. Plenty of people go bankrupt from buying properties. It isn't something that you can pick up from just listening to "gurus". A single mistake that you made and you will be paying off the loan for the rest of your life through bankruptcy, unable to sell the property due to the reduced value, and constantly in the red due to the low rental yield being unable to cover the installment

You have met a CFP, now you have met an Associate RFP. A practitioning one; with mortgages being one of his biggest bread and butter - yet he would be the first one to tell you not to buy property unless you have thoroughly learned about it.