Yes can be done. At cimb this is possible. You have an option to pay for the principal only. By doing this you will reduce your interest. There are 3 mode of payment u can make at cimbclick

- principal payment
- monthly payment
- advance payment

Let say your loan installment is 1300 and u want to pay an extra 200. 1st choose monthly payment to pay your installment 1300. For the 200 choose principal payment.

Advance payment is use when you want to pay lumpsump.

I think the same. Because once you make the advance payment the money already in the system. But maybe can go to the bank and ask them to cancel the balance of the advance payment. But for this one i need to clarify first.

Correct me im wrong, this asb financing is like paying monthly installment but infact its a saving plus bank interest...rite?

Just curious.

Why would someone take the ASB Financing without Takaful?

I see. Thanks.

Incidentally, how much a difference does takaful make on the monthly payments?

How much added into installment when apply with takaful is different for every person. The premium will be charge base on age, health condition and so on. Let say the premium charges for your takaful is 6000 for 100k loan. Therefore your total loan is 106k. The monthly is around 572.27 while without takaful your monthly is 539.88. (base on interest rate 5.05% for 30 years loan)

Why consultant advise not to apply takaful because most player asb only want to make asbf for short term less than 10 years. If they want to increase the return of investment, apply asbf without takaful will give u more.

Remember when u apply with takaful, for few year the principal only will deduct the premium charges. Therefore if u terminate too early you might end with no principal values and also pay some charges.

My advice make asbf according to your plan. If short term no takaful is better. Long term apply with takaful.

Thats because the premium was charged into the loan. Therefore u will pay that 33 ringgit extra until your loan end or terminate. Thats why i more advise my client to apply 3rd party takaful. They dun need to pay any premium charges + interest except the monthly contribution. Most bank give u a choice to pay the premium by cash. However most banker doesnt told client about this. Thats why they end up pay the premium with the loan. And also not many customer have that much of money to pay lumpsump. If 6k consider ok how bout 10k or more? How many of malaysian who have saving more than 10k. Thats why the bank put the premium charges into the loan. Its for convenient.

sorry out of topic abit

how do we pay asbf from ambank using maybank2u?

Problem is i dont know which to select since ambank not appear on the list

Hi, for those who rolling their dividen to repay their asbf, are you doing this over the counter every month? I guess no different when you withdraw (throughout the month) it as the dividen calculation for that month will use the min balance on the account,right?

If you have asbf & asb2f, are you withdraws from one account to repay the loans or withdraw from both accounts to repay their own?

Thanks

Nope. For ASB Reducing Term Takaful (ARTT) and Mortgage RTT (MRTT), once bought while financed by the bank, will 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.

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

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)

Hi..

I'm need pro opinion here..
Didn't have house yet..

I and waifu both already finish 2nd year of asb1
Waifu using her bonus to pay for 2nd year..

I still have last year bonus untouch.. Around 15k

My Balance payslip only can get 1k plus commitment only

She at max commitment .. But got 85k on TH..

Advice me what to do next? Get asb 2 ( if still can or anyway possible?) or buy house?

Tq

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

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.

1. You are completely wrong though, I have already given the definition of refinancing, and it is your own fault that you mistook the meaning of refinance as "getting free money". There is no such thing as "free money", the cash-out that you receive from refinancing is still a loan (backed by the property), and I always make that clear to my clients. It is not surprising that you are also finding it difficult to understand the meaning of "refinancing" which to you is more akin to refinancing of a mortgage account, with the so-called "free money" to boot. As you can't even grasp the technical meaning of refinancing i do not think it is a good idea to spread the misconception of what it really is.

As such, settling the current ASB loan and taking up a new one to enjoy better rates can be considered "refinancing", even if there is no involvement of "free money".

2. As for the comment about properties, I just have these few things to say:

a. real estate is just an investment vehicle, like many other including ASB/ASB2, it has no guarantees of return (capital-appreciation, dividend, rental). These talks about how a property is better or worse than other investment vehicles are coming from snake-oil salesmen. yes, the property is there, it is real and tangible (unlike ASB/share units), but there is no guarantee in its value, which is the crux of the issue that I have with people that are pushing properties as hard as they can. It is not wrong to talk about it, but we must recognize the fact there are properties bought in the past few years that are only retaining, if not losing their values over time. If this continues for the next 30 years or so, would you still be saying that a property is a good investment? What is wrong with renting?

b. as it is now, buying a house as a sub-sale (as it is for own stay now, undercon is not suitable) is a LOT MORE expensive than renting. Costs (including hidden costs) will eat you up, in the form of down payment, MOT, SPA, LA, fire-insurance, management fees, sinking fund, taxes, maintenance. This is just anecdotal, but based on my clients house prices that they are buying today, the rental income can never reach the installment alone, not including the other costs that I have mentioned. So you would have spent a lot of money on the upfront costs, and then you would have to spend more to pay off the banks through your mortgages.

Please consider these things before recommending one asset class to another. 

There, facts right in your face. In fact, I have been dropping facts upon facts with numbers to back them up. That is my style, unlike you who seem to enjoy obfuscating facts as proven in your misleading definition of "refinancing" above.

So I take it from ur advises

Max out all 400+400k asb loan
And don't buy house yet..

I reluctant to buy house yet coz didn't know where I will settle down.. Especially waifu. Coz her department usually will rotate staff to other place after 5 years

BTW got one land lot just less than 200 meter from school.. Maybe will stay there after all. Easier for my child later.. 4y old now

1. ASB-f

A. Incomplete question. What is the current outstanding of the loan, and what is the cash-value of the ARTA? This is why I always recommend clients not to take ARTA, people who do are getting bad advises, because when they need to refinance or settle the account, they would have to incur some losses (through the premium of the insurance agent which happens to be the bank itself). Currently the best rate is 4.9%, and some clients who took up ASB financing is currently being charged 5.45%, it would be a mismanagement of one's own finances if you do not look into the market rate and refinance the loan into something that is of better rates

Incomplete question, which suggests inexperience of the person asking the question. Please try again

B. As above, incomplete question (what is the original loan amount), but this is more doable. I assume John has paid for the financing for a few years, thus making the current outstanding reduced by a bit. He would have to ask the current bank to close the ASB-financing account, all the units (non-dividend, non-cash) would be sold off. Refinancing that loan would allow him to get 190k or 200k from the new bank, at the rate of 4.9%, he can take a reduced tenure or l. I dont understand what you are trying to do here.

By the way, may I suggest that you use the correct terms when posting your questions/assertions. Using the right terms, there are differences between the loan limit (original loan amount) and current principal outstanding. However you chose to write these instead: "currently has a loan of 209k" . Which is confusing and allows room for miscommunication. Usually I would visit INVESTOPEDIA when i am not sure about some terms because I avoid using the wrong terms, since as you can see in here and in the mortgage threads, I see myself as an educator of sorts. 

2. On to the property side, I noticed that you love using anecdotal examples to back your points, of which I am not going to address mainly due to 3 reasons:

1. they are anecdotal and personal which do not represent the whole real-estate industry as a whole.
2. It could be coming out of your behind for all i know, a.k.a bullshit
3. There is no way that I can argue against personal experiences, we can hear about it, talk about it, but please don't use anecdotal experiences to prove you points.

What I claim is true though, a lot of publications are saying the same thing, here is one of them:Downtrend in property prices



On top of this, paper gains are not gains unless you sell it off. You need to understand the differences between liquid assets like cash/ut/asb vs real estate that takes between 3 to 6 months for the transaction to complete, if that.


You are right, with ASB-financing you can close the account in as soon as 10 days, as per my experience. So it is a good liquid investment. In the event when you need to buy a house, you can just call up the bank, fill up some forms, and the loan will be closed in a very short time.

Dividend income from the ASB can also be used as part of your total income, useful when the banks are calculating your debt-service-ratio. It will not be able to cancel out your commitments as a whole, but it is better than having the commitment but without the income (i.e hire purchase)

Aiyooo. Why this thread so hot today.
Why so difficult one. This is what i do:
1. Take max loan for both ASB1/2. Dont touch at all.
2. Dump all saving in Tabung Haji.
3. Once have enough emergency fund, use extra money to buy properties and stocks. I bought 1 subsale and 1 undercon using loan. Subsale prop give me rental income which covers installment/maintenance fees.
4. Be alert with current interest rate. Refinance asbf if worth it.
I am not that savvy with financial management but so far i dont have much issue with this approach. Asbf is the best investment tools due to its simplicity. Property can be a bit headache sometimes.

I've helped my good friend to refinance her ASB financing. She loaned rm100k with rm811 monthly commitment for 15 years @ 5.25% interest plus a term insurance to it.
She serviced the loan for 3 + years before finally refinance it. In that 3 years, she paid about rm20k+ principal from rm100k loan.
So what happened is: she got that rm20k back and get a new asb loan rm150k for 30 years at 5.05% interest, with rm810 monthly commitment.
So when we refinance (or terminate) asbf, we get back the principal we had paid.