Hi. Sure bro... It's on a single IC

Everyone knows that max you can put in ASB is 200k. but as you earn dividend, the size will expand. So for eg if after the first year you have earned 15k dividend, your ASB size is now 215k! so if you were to withdraw 5k and leave 210k in there, you can still put back that 5k in even though you have 210k already there.

So for me, I took the max loan about 8 or 9 years back earning dividend which i never touched and let it compound. Dividend size grew to 200k essentially doubled. So I had 200k sijil and 200k cash. Took out the 200k cash and put into ASB2 and replaced it with another 200k sijil from MBB. Making it 400k loan in ASB

Hope this helps.

PNB used to allow an individual to take up ASB financing up to 400k (if their ASB limit is maxed to that amount), but a few months ago they decided to limit the allowed financing to only 200k per person. You can still put in cash exceeding 200k though. So people who already have 400k loan for ASB did it before the rule came into play.

ooh... didn;t know it is not allowed anymore. Then I guess I was lucky. Myabe in future they will open up again.

Anyways, take the 200k first. Who knows in 8-9 years they allow then you are already in the position to take advantage of it.

this is the same concept that i have used...but, i stop at 300k only because my limit is only at 305k. Now, with the lasb2 offered by maybank, i transferred all my savings into my asb2 children and take the 150k asb2 loan (50k already invest through epf acct 1)

Great! Just remember that this ASB loan will count in your CCRIS. So just keep that in mind when you do your budgeting and future plans.

He probably managed to accumulate up to 300k only before PNB imposed the max 200k ruling. So he can only take an additional 100k loan because that was what his limit had expanded to at the time. He will still continue to grow the dividend portion and with it also expand the Max limit.... just that he can't take anymore loan because of the PNB ruling now.

yes, i withdrew all my money to give way for the loan and investment for epf acc 1 (150k(loan)+50k(epf acc 1) = max 200k)

i choose to max both of my child asb2 account first due to the limited fund size (the total fund size is rm10Bil)..that is 50k each

i can still fill their asb account as and when i have the money because asb have no fund size limitation...

for asb can't bro...

only asb2

As other people on this thread had mentioned, you are now allowed to take up ASB2 financing (also up to 200k). So if you have enough 'capital' for another 200k, dont waste time feeling disappointed and go grab these loans now   

200k how much u are paying every month?
is it can be covered with your ASB divident?

when u said divide here what do u mean?

So means if I take the 200k loan, I'll only have to pay for 1 year is it? As in pay only RM1.2k every month for a year. Then after that year let the dividend pay the rest? And would it total up to 1.5M? thank you.. Im thinking of taking it up

Thanks for the info! I might just sign up for the 200k.. And hopefully my budget will allow me to continue paying for 30 years!

Yes. They usually surrender after 2 or 3 years and get back the amortized value of the insurance and installments paid. Then they retake the loan again for the full 30 years again.

The monthly repayments remain the same, dividends untouched and the loan extended They get a few thousand back to reinvest or top up the ASB if not full yet to reach the max faster

Basically like remortgaging .... Very technical stuff.... goes all the way down to the timing of these transactions so as to not lose even 1 month of pro rated dividend!

so it's confirm there's no ASB loans next year?

or there's some last minutes "extension" given 

well everyone it to be as usual, but hey asnb need to get asb2 sales up too right 

i think thats not the main advantage of asb loan..maybe u dont really understand the concept   

sudah apply ASB loan? 

Comparing to invest in ASB loan and without loan, loan is the cost of investment, with the gap narrow down, less motivation to invest using loan

you posted twice so i reply u twice.

Don't get me wrong, the reason i compare is based on the condition that one has the cash to fill up the ASB limit instead of taking loan. When the interest rate is low, and ASB return is high it make sense to borrow to invest.

When the surplus gap in between the loan and ASB return is narrowed down, those who already have loan may consider to undo the loan, and invest somewhere else.

The scenerios have excluded the opportunity costs.
Once you take the ASB loan, it will be listed in the Ccris, and affect your future borrowing capacity, as when you want to apply car loan and housing loan.
The scenarios are too simple but it's good for basic understanding of how to use OPM in maximising ROI.

so it's confirm news asb loan stop?

Thanks for the hint. ROI 25% in 3 years is consider very good IMHO. I also active in property investment & rental. However, property investment seem going to slow down. Time find other strategy.

I haven't open ASB2 account yet. Having 100k ASB loan on the 3rd year and compound it. Let me try with small test 50k ASB loan for 2-3 years and see the outcome.

btw, I believe now most of the bank will waive CCRIS record for ASB loan when you applying Home Loan if you've copy of ASB Loan Letter Offer. I did that early last year.