Best rate so far for new application is 4.30% for 40 years tenure or till age of 65 now

Yes, distributions are still being calculated as usual, based on the minimum monthly balance of your accounts

If you have cash and you are a risk-taker? It may be a good idea to dump it in stocks, or if you are not privy about which stocks you can try index funds or mutual funds. These funds have stocks as their underlying investments, but you would not be investing them directly

It is a difficult question to answer as there are those who have lost faith in the fund. There are a few what-if situations at hand here:

a. if it turns out that the fund would give less than the prevailing ASBF rates, then you would have made some losses
b. if it turns out that the fund would give more than the prevailing ASBF rates, then you would have made some profit

We are at a crossroad where profitability is not guaranteed. However keep in mind that PNB's mandate to maximize their funds' returns remain in tact. If you still believe in them, you can start your ASBF as soon as you are able to, simply to maximize the growth of your softcap

I agree with you, an alternative portfolio would be to directly invest in the stock market, but only do it if you really know what you are doing.

Btw, I have something to say about the OPR cut and its effect on new loans

Lower OPR doesn't mean cheaper financing for all

they may actually be launching the financing again for ASB2F because they want to explore the new overseas market.

I have all of you (my current clients) on my broadcast list, just make sure you have added me into your contact lists, because I can't send any broadcast to those who do not have me in their contact list

1. I would say not to refinance now, because of this: Lower OPR doesn't mean cheaper financing for all

You guys should have refinanced when the OPR was high, not when it is low.

TL;DR: When OPR is low, the banks would increase the +[SPREAD] of their variable loan products; inversely, the =[SPREAD] would be decreased when OPR is high

Even if you refinance now you may get 3.95%, which would end up higher when the OPR bounces back

2. You are absolutely correct on the Softcap = 200k + "reinvested dividend". keep in mind that the reinvested dividend would still count even if you immediately withdraws the dividend. However, if you leave the dividend in your ASB account, it would compound, making it even bigger in the following years

It is stated in my signature and under my avatar

Do say hi on whatsap so I can add you; i cant broadcast to those I have not saved in my list too. name and company-name OR place of abode would help identifying you guys too. Like there are so many Hafiz. So I would just add identifiers like Hafiz (Petronas) and Hafiz (CGG Veritas), etc.

I have my staff group and label you guys too, many have more than one labels, because they take multiple products

Noted, I haven't thought of people using mobile or not logged in

This post has been edited by wild_card_my: May 8 2020, 03:16 PM

You are correct. There is a window to do it, but those who had their financing at BR + 1.00% is now smiling from ear to ear while the new applicants are facing BR + 1.25% and perhaps higher now that bank is updating their spread

RHB. If any of you are interested, you can always talk to your friendly ASBF broker

Nope!

But they dan change their spread for new applications anytime! If you want ASBF better apply now, banks will change their spread on their variable loans to be wider as they (are being forced to) reduce their BR

But there are no ASBF2 at the moment

Just put the extra cash in ASB2, as cash investment

you will lose one month's dividend on the month of the transition. Lets say you apply for refinancing with me, I will apply it on your behalf and let you know once the application is approved. Let's say it was approved on the 18th of May; I would ask you to wait a few more days before cancelling your current financing with your current bank. On the 25th May you cancelled the financing, but this will not happen instantaneously, it will take the bank 1 to 4 weeks (up to 3 months) for the certificate redemption

Only once the certificate has been redeemed can I ask the new bank to disburse your funds. Assuming that the redemption and disbursement happens in the same month, you only lose 1 month worth of dividend

There are many green bankers who may ask you to cancel the current financing as soon as possible - this is the wrong method:

a. What is your new application is extended a few weeks or months? You would lose more than 1 month dividend
b. What is your new application is rejected due to new commitments that you took AFTER your initial financing; now you would end up with no ASBF at all despite wanting one

Go with good bankers and brokers. You know who they are

All the banks offer financing without takaful; however:

a. Most of them would have increased the financing rate by at least 5 basis points (0.05) for not taking takaful at all
b. this can be overcome by taking minimal takaful
c. Some green bankers would lie to you about this whole thing and insist that you take up their takaful offers - because they have takaful KPI

If you are my client in the past few years, I would say not to refinance just due to the fact that you are now enjoying lower financing due to the lower OPR and BR over the past few years. But if you are refinancing for other purposes like liberating your capital, that is another story, although it should not be too much if you have only started your financing for only a few (less than 3 years or so)

New rates from HLBB: BR + 1.52%. BR at 2.88%, lowered by 0.50% as per the OPR. The spread has been increased, so the rate for new applicants remain at 4.40%

So as I mentioned, as the OPR and BR are reduced, the banks will protect their margins by increasing the spread.

Padan muka anyone who delayed from refinancing in the past two years

Takaful has two important aspects

1. Length of contract
2. Amount of coverage

To get minimal takaful means paying the least amount of contribution, only to qualify for the best rate. In this case, for most banks it is 5 years and full/half loan amount

My first advice is to avoid dealing with friends, unless he became your friend as your agent first

You will sour relationships with him going forward, not to mention segan to marah him when things go south

Second, while this may be a good time to jump into UT, understand the fees charged on it. I would only advise my clients: cash into ASB/2/3, EPF into UT (lower sales charges)

Update: For those who wants to refinance or apply a new, a good rate would be 3.85% without takaful and 3.80 with minimal takaful.

40 years max tenure, up till age 65

Not at all, but you should kinda avoid the moratorium for ASBF and Mortgages

Moratorium Effects on your Mortgage and ASBF Accounts

The loan balance of your mortgage and ASBF accounts would still accrue interest during the six (6) months moratorium. This means that even though you are deferred from paying the installments, you are still being charged interest based on the loan balance as of the beginning of the moratorium

The accrued interest would accumulate each month and must be settled by October 2020. If you are unable to settle the due in one lump sum, it will be capitalized into your loan account thus increasing the loan balance

Due to the nature of reducing-balance interest calculation, the now-capitalized interest will be compounded over the years. This compounding of interest will be in effect till the full settlement of the loan balance.

As such one of the two things below will happen in terms of your mortgage and/or ASBF accounts. Please verify this with your own banks:

1. Starting October your installment will be increased to repay the increased loan balance while maintaining the original loan tenure

2. Alternatively, your installment will remain the same but the tenure will be extended for longer than six (6) months since the capitalized interest would be compounded as explained above

Principal amount minus the accrued interest. i.e. Your certificate size is RM200,000, your loan balance is RM180k, your accrued interest over the 6 months was RM4k, you will only get back RM16k

This post has been edited by wild_card_my: May 13 2020, 03:59 PM

16k. Typo. Monkeys love his scraps

It would. By then the accrued interest would already have compounded itself (and you would have already laid for a huge portion of the compounded interest