sorry bro.. I'm not really have full insight about this.. (My mistake.. should have read more before applying the asb loan last time..) do this mean that for future loan/housing loan, bank did not have confident that I'll honour the loan agreement I might not be able to commit?

My general advice to young people who havent got a house and IS PLANNING to get one within an immediate future (2 to 5 years) is to avoid getting the ASB loan.

First of all, the loan will appear in your CCRIS and it will be considered as your commitment by all the banks except for, and with great credit-record on your side, the bank you took your ASB loan from.

The dividends from ASB can be used to "cancel" the commitment from the ASB loan, but most banks only accept an average from 2 years return, meaning if you take the loan today (at the end of the year) your average 2-year return will be lower come 2 years from today, and for those who havent received the dividends for 2 years in a row wouldnt be able to use it the dividend to "cancel" the ASB loan commitment.

A house is a necessity, an ASB isn't so much.

Remember, it's always important to cater to your basic needs of:

1. Food/drinks
2. Clothing
3. Shelter

And;

1. Basic 3 to 8 months savings as an emergency fund
2. Insurance
3. Investment.

Even as a mortgage broker I sometimes tell my clients to not buy a house before they have their emergency fund and insurance already set in place

This post has been edited by wild_card_my: Nov 18 2014, 02:31 PM

Thanks bro.. But in my case, I think this is all too late.. I see my plan, to cancel the ASB loan, I need to wait until 10 years any advice?

I may be biased since I am managing a lot of funds for my clients and none of them involves ASB and they are earning more than 8% per annum anyway:

1. My advice would be to cut your loses, and get out while you can. You will incur some loses but your cash flow would be in better shape especially when you dont even yet have a house to stay. If you keep on renting for the rest of your life, the rental prices will increase along with the capital appreciation and you will see your loses there. Ive done the calculations on paper comparing ASB loan and housing loan for rental before on THIS VERY THREAD a few months ago... look it up if you will

2. For short term periods (2 to 5 years) the differences between investing directly into ASB based on the instalment that you would have paid to the bank for the ASB loan are not too different (not to mention the upfront cost of insurance and what not). So once, or if you decide to cut your loses by surrendering the the ASB loan, you can always invest to ASB directly. By using an ASB loan you are depriving yourself other loans that are more crucial such as the housing loan, one that should be a priority for a house-less lad like yourself.

I mean, if you already have 3 or 4 houses, 1 for staying and the other 3 for renting or flipping, then it would be very apt for you to weight the difference between getting an ASB loan and buying another property using a housing loan, but hey what did I say about this house-less lad again?


All in all, I blame the bankers who are less concerned about the clients financial well-being, lack of empathy for the working classes, and commission-minded predatory tactics. ASB loan has its pluses and minuses, but you wont be hearing the latter from the bankers.

This post has been edited by wild_card_my: Nov 18 2014, 02:45 PM

wuwah.. a question..
how much is ur monthly ASB commitment?
how much is ur future house monthly commitment?

Well then, I think, I'll risk the effect on CTOS and CCRIS.. I can try improve my financial stability before applying another loan then to gain their trust.. You are right, I actually want the hosing loan that time because of the increment of the rental per year, compared to other loan (That time, bank even asked me to buy car first. watdeheck because they said I don't have any loan commitment for them to see )

Now, ASB actually 566.. If I got the house, monthly should be around RM900. But currently, the rental of the house for me to continue renting is RM2k. But the person that wanted to sell me the house told me, the house might be undervalued to bank valuer.. hence, if want to buy the house according to value of the seller, she wants me to pay a little more for the dp.. not sure this is legit or not

wow.. so good.. monthly commitment only RM900 but the rental is RM2k..

yup.. In super hot area somemore.. That's why I really want it last time.. now I'm super regret..

ASB Loan PROMOTION BLR-2% or BLR-1.85%

For loan amount less than 100K, rates is BLR-1.85%
For loan amount starts with 100K to max 200K is BLR-2.0%

- No Lock in period
- No penalty
- No processing fees
- Only need to pay RM50 for ASB certificate upon acceptance.

Maximum tenure is 25 years, mins 5 years.

For information, pls contact Dorothy 016-6634013

Just a question.
The limit for ASB is 200k units yeah?
And with the new ASB2 it's anothet 200k units.
Does this mean we can 400k of asb loan from the banks? So that's like 34k dividend every year ( if not compounded)

This post has been edited by Musikl: Nov 23 2014, 11:10 AM

you should have get the house loan then onlyu ASB loan.

house loan will have to determine your overall committment, including ASB loan.

ASB loan is easy to get, they dont care bout your commitment because its a sure profit scheme for the bank.

funny, you give ASB loan but cant invest yourself, Dorothy.

BSN right ?

Nope..this is from Affin Bank.

Wait, how did you know that the ASB2 return will be similar to ASB? It's a new fund and it hasn't even shown its first 5-year return yet.

Being optimistic. 😄
It's a mixed fund so I'm guessing the return will be different. How much difference we will have to wait for annual report.
But would it be worth putting something in?

Also i cant find this promotion on affin banks website? (BLR-2%)

This post has been edited by Musikl: Nov 23 2014, 11:42 PM

Even after the annual report, we still have to look for at least 5 year investment performance. ASB tend to give lower dividends when the unit trusts are giving higher returns, and maintain the dividend rate when every other UT funds are losing their money. What does that tell you?

Haha...Yeah. I hope I can entitled for it, but I can't. My Job mah...

ASB2 loan?

maybank BLR-2.. go grab them!