Bro, you might need to check back on this. Cause it sounds too good to be true. If this is the case, I will double my money instantly. Just imagine, having 245k cash in my account and apply loan immediately bumped to 445k! and my dividend bumped from 16k to 29k! That is just awesome... but unfortunately sounds a little too easy. Technically, i could dump 200k in there as per limit, then wait 3 years for 45k dividend. Then apply 200k loan and immediately after 3 years i'm earning dividend on 445k

If I have 245k in there, my limit is therefore pegged 245k. I can't exceed this amount until my dividend expands it further.

Doesn't matter if I take out 200k and leave 45k in there, or take out 245k and later put back the 45k. The end result is still the same. I will end up with the same 245k in my account after the terminate/reapply process.

Credit limit will be reset back to 200k?

So interest calculation starts from disbursement date and first installment payment will be subsequent month?

Hi Bro Haziq, Thanks for taking the trouble to talk to your upper people to get clarification. before I comment on the rest, can I clarify on this first?

I understand that you cannot put back 245K after taking the 200k loan. But can you put back 45k? since the limit was 245k before? So then in the ASB will be 200k sijil + 45k cash

Bro Haziq, hope you don't take this as a personal attack. Rather it's contructive sharing. Please know that I write this from experience of what I have done and gone through.
The ASB limit will never ever reset. Once you've achieve a certain level that will be you limit. If it resets everytime you reaaply the loan, no one will use the terminate/reaaply technique. Because if they do then the ASB account will reset and they cannot compound the dividends. To show that that credit limit never shrinks, please refer to this statement from 2014:-



Ignore the other markings here. Just notice the circle at the bottom. On this account there is a 400k on sijil, and cash 77k with a balance of 477k.. Yet, if you look at the bottom, I can still add to the account the amount of RM 9,433.63 because my account has reached that limit before. To make it clearer, I can take out and put back the 77k cash anytime at will.
I mentioned earlier that I had applied for ASB2 loan. Before the loan, I had 223k cash in it:-



As you can see, the account was zerorised to make way for the 200k loan. And later after the loan was disbursed, I was able to put back the 23,833.00 back making it 223k again (200 sijil + 23k cash). I am able to do this because my limit has expanded to exactly 223,833.58 and it didn't revert back to 200k after it was zerorised to take the loan. In fact, the only reason i didn't put in the 58 cents was because they only deal in RM1 units!!! lol. Although this is for ASB2, but it should be the same for ASB1

Hope this helps clarify things.

That's awesome. That means PNB has raised the limit to 300k? It's the first I've heard of it but it is indeed great news. Those with 300k size can take advantage of it

You already have a 200k loan with Maybank?

Yes, already have 200k loan for ASB1 as well as 200k for ASB2. They said yesterday I can get 100k more loan for ASB1, just need to bring proper documents since I am self-employed.

Hi, I just want to know about the ASB loan. Where will my ASB loan money put after 20 years? In my bank account or ASB account?

I am now borrowing RM199k from RHB Bank for 20 years. After 20 years, that RM199k is mine. This mean, RM199k loan at RHB 4.85% is RM1,297/month. In this RM1,297/mth, RM829.17 is my own money, RM467.83 is belongs to bank interest.

So my future value should be RM311k. So in total, after 20 years, the RM199k is mine but the RM112k is bank interest.

I want to know how is that RM199k works in my ASB since my book does not show that RM199k but just show my dividend and bonus gain. Will that RM199k remain in my RHB bank account after 20 years?

Hi guys,

Thank you for the very informative posts. Previously I've been getting my information about ASB Loan in bits and pieces and was never 100% satisfied being saddled with the loan vs. its returns. However, reading about the terminate/reapply technique really has boosted my confidence in ASB Loan.

Hence would you be able to advise me on the next step I should take? I am thinking of the terminate/reapply method as you all have suggested.

I thought I would post my loan details below for clarity.

The Facts:
Loan Amount: RM 200,000
Loan Application Date: 2007
Loan Period: 25 years
Current IR: 5.65%
Current Monthly Payment: RM1440 (currently I pay 80%-90% of this from my salary)
Dividend cash-out to date: RM 108,000 (to reimburse my dad for the first few years he paid for me and to supplement monthly payments)
Projected future dividend cash-outs: RM12,500 (to partially supplement monthly payment until salary is high enough)
Additional Notes: Had a very bad payment history 2007 - early 2014 (don't ask lol). From then on until now only slightly late payment twice.
Current Age: Below 30

My Projection based on current data (2007-2016) and future estimates:
Final Statement @ 25 years = RM 200,000 + RM 488,000 = RM 688,000
Total Payment Made = RM1372*8 + RM1440*17 = RM 425,500
Return = RM 688,000 - RM 425,500 = RM 262,850
Return adjusted for 3% Inflation in 25 years = RM 125,000
(Note: using 7.17% dividend and 0.67% bonus for remaining years)
(Note: I didn't use lowest balance calculation for projected dividend/bonus - should be ok as I won't be taking out much)

So you can imagine why I wasn't too happy having to pay a large part of my monthly salary for a meagre RM125,000 and sacrifice my current standard of living (hey I'm a millennial!). I take some blame as I shouldn't have touched the RM 108k dividends even if it was mostly to reimburse my dad. However the unreasonably high 5.65% IR was really out of my hands.

Hence what is the best step for me to take now? I really want to try the terminate/reapply method but I'm afraid my bad payment history will make me ineligible for a new ASB loan. Is there any way I can guarantee myself a new loan before terminating my current loan? Maybe checking my CCRIS score first or having a verbal confirmation from the bank?

Many thanks for your help

Hi There... Millennials don't usually think bout the future. They live in the Now. So I'd say you're a rare breed! lol

5.65%? wow! with the dividends @ 6.75% this year, you earned only 1.1%.... You need to change this. Pronto. That's why terminating and reaaplying is so important, if only to keep up with the most competitive rates, let alone the amortisation kickback. 

Here's what I would do. Walk into any bank, ask to see the officer for ASB loans. Ask him/her whether you will be eligible for the max loan. Be honest with your history. Let them do their background checking and come back to you. If no, look elsewhere. But I have a feeling that they will accommodate given your recent history. Problem 1 solved!

If they do, terminate and re-apply as soon as you can. You should be looking at an IR of 5% and a monthly payment of about 1k and a bit with a max loan of 200k and max tenure of 30 years. You mentioned that you pay 80% - 90% from your salary which means your'e about 140 - 280 short every month. Well with this new loan, you should have no trouble at all paying 100% from your salary since it's about 300 less than what you are currently paying. Problem 2 solved!
Some questions about your calculation above.

(2007 - 2016) = 9 years. 25 year loan means you have 16 years left. By my very simple calculation, assuming we start fresh from now with your current loan and you only have 200k sijil loan with no cash dividends in there:-

After 16 years, you'd have RM 590k (compounded from 200k @ 7%)
Total payment made : 1440 x 12 x 16 = 276k
Gain : 314k (adjust for inflation at your will)

It's still a decent gain from 16 years. But if you terminate and reapply, after 16 years, you gain will be 380k (before inflation)

All the above is well and good where we have an endpoint and we know where we are after X number of years. We would know how much we have in our bank accounts. But that's not the point of all our previous discussions here.

I go into these loans with no end in sight. I don't even care how long i've paid and how many more years i have left to pay. I'm in this for maximising capital and utilising other people's money for my gain. And compounding interest is what makes all of this work. If you're employing the terminate and reapply strategy, your loan will always be at max tenure.

From a humble single 200k loan 15 odd years ago when I was 25 years old, earning 14k dividends per year, i'm now earning dividends from 1M of about 70k per year @ 7%. 600k loan with ASB & ASB2 and 400k cash in ASB, ASB2 & ASD. Not a single cent of my own money was injected other than the loan repayments and earnings from the dividends. From 1.2k per month installment for the first 200k loan back then to 3.5k installment for the 600k loan now. Here's the kicker.... after 15 years of loan, i still have about 27 years left to pay..... I THINK! I've now reached 40 and i can't take max tenure anymore, thus making my monthly repayments a little higher. Still calculating whether it's still worthwhile to terminate and reaaply. But that's a discussion for old people! lol

That's why i said before, you have youth on your side and there is an opportunity cost the longer you wait.

So to recap, 70k per year... just to put that into perspective is 140k every 2 years. Assuming I let this 1M compound for the next 10 years, it will be 2M (@ 7% dividend) that's a gain of 1M in 10 years! Just to put things into perspective again, it took me 10 years of compounding dividend to get 200k cash from the first 200k loan. Now, due to the magic of compounding interest, that same 10 years earns me 1M!

Now let's say disaster strike and for some reason, I can't pay off the loan anymore. I'd terminate everything. No questions asked and no further payments need to be made. If I do it now, I'd have 400k cash. If I do it in 10 years i'd have 1.4M cash. Hopefully this will be enough for my retirement earning me 98k per year, i.e 8k per month and....peace of mind.

So forget the past, start fresh from here. the sooner the better.

Hi guys,
Currently, I have been saving my salary (unused RM1k after deduct all commitment) into ASB on monthly basis. Tired of keep going to bank to deposit my money every month. Also, the counter girl keep on telling me to use ASB loan but they cant tell whats the profit of asb loan compared to asb saving.

After reading thru this thread here, now i am convinced to get the ASB loan RM200k, probably by this week.
Just wondering will this ASB loan make it difficult for me to get housing loan in future? Plan to grab a housing loan (RM300k) in the next 4 years time.

Thanks.



Thanks haziq, your explanation is good enough for me to understand the power of ASB loan. Now, need to go banks to survey for the lowest rate.

Haziq, what's the current rate from CIMB? and do you set any minimum amount for loan taken ie 100k before you provide consultation? Because I know some agent will only help the client if they take at least 100k of loan.

Hope you don't get offended , just asking

80k?


btw, whats the condition for 5% rate?

Some banks view the monthly payments as a burden and some banks view the dividends as income. Usually the latter would be the banks that provides the loans as they have better understanding in how ASB can make money for the clients.

Anyway, if they do view it as a burden, just terminate it and apply your housing loan. That 4 years would have made you a lot more than if you were to just save manually by yourself.

Why don't you contact Bro haziq for the loan?  You can see that he is genuinely committed to help and his explanations comes with facts and figures that is easy to understand.

existing customer can be from any bank, right? and Do I need to cancel the existing loan first?

Thanks...

If I go to branch myself, can I still get the promo rate? or only through consultant?

Thanks for the info

Number saved!.
Actually,  how does asb refinancing with two different banks work?

cannot afford 100k...

Anyway, thanks bro haziq

Hai Mr haziq, may i get your phone number as well for consultation?
i came from Seremban but currently based in KL, mybe we can meet up one day.

new comer in this thread btw, very informative! 

Hi Hafiq,

Hmm does it work that way?

As far as I know, I had applied for 150k few years back and had a cumulative dividend of 40k. Then subsequent I took additional loan of 50k without having to take out the 40k of my own money. Why is that so?

As mentioned by the consultant, whatever dividend earned from previous years wont be taken into consideration of the total 200k limit.

Hope you can clarify on this.

Ahh more like it.. Thanks for the explanation given buddy