Loan ASB is better than own saving. Fullstop.

Yes..before this I didn't see in big picture. Aftet I get it, it's better with asb loan. More ROI

this is just one of the technique to manipulate ASB loan. 

Newbie in asb loan here.

Hope you guys can help me out here.

I have transferred the money from my asb account to my savings account since taking up the loan.

I just received my asb loan offer letter which explains the terms and agreements via my mailbox yesterday.

The sales officer earlier told me they have deducted few months of my advance payment in my savings account.

If say once i have to start paying my monthly installment, how do i make my asb loan payment when i did not receive any account number. Will they send me another document to my house mailbox to tell me how to make payment to my asb loan account or something?

I did look at the offer letter but it did not state any account number for me to pay. It just states how i can pay it either via standing instructions or potong gaji thats all.

Loan section of maybank2u? Ok..i will check that part if its there...

100% agree..loaner earn more because he start with 200k in his asb account while non loaner from 1200 as starter...compounding interest is fully utilize when u start big...they can earn more at the end of the maturity date...
Dun worry bro...start with little first is ok...if u r young make the max loan of 30 years with the afford amount u can and keep paying for atleast 5 years...after 5 years surrender your asb and use that money to pay for your whole year 200k asb loan....from here u just need to use the dividend money to pay for your loan....this is one of the easiest way and without to burden urself paying the high monthly commitment...but pls take note with this technique u wont be able to utilize the full benefit of compounding interest...but atleast u can earn more than 200k after 30 years...still a good amount for retirement right?

Pm me for futher intruction...i can help u to calculate the max loan amount u can apply

still berbaloi cuma bayaran lebih mahal la...boleh saya tanya tuan bekerja di sektor swasta @ kerajaan? bole dptkan no. telefon? sy boleh menawarkan sesuatu yg lebih sesuai dengan tuan...@ tuan ambil no saya ni 011-10785052 haziq
kos takaful tgk berapa tahun tuan nk buat...klu islamic loan hanya ada fi RM60 skali byr shj...

yes sure u can...from my calculation u only need about 28 month to get another 30k from the compounding dividend

calculate from 150k loan + 20k (original saving)


So does it mean that if I sell my 150k,the next loan I can take is maybe less than 150k?
no you still can apply for 200k asb loan but why u want to surrender it if u still can pay for it. It will be a waste instead im advising u to apply 200k loan for ASB2 (30 years) without surrendering your current loan (ASB1) You can pay your ASB2 loan using your ASB1 dividend for 1 year...At 2nd year use ASB2 own dividend to pay for the loan (rolling dividend method)
so my calculation assumption dividend rate at 7.25% you will get :

1st ASB account after 30 years you can earn approx. 1.6 million (pay using your own money)

2nd ASB account after 30 years you can earn approx. 300k (rolling dividend method)


for your last question, yes the more you loan the more you get for your compounding interest...

-Premier wealth advisor-

Wow, quite a lot of questions there. Will try to address it. Please ask again if I've missed out something.

Firstly, Congrats as you have taken the first step by asking. If you've just graduated then you should be 23-25. And look like your parents are smart people and have the foresight to apply the loan for you. If they applied when you were 18, then you would be 5 years in. Is the loan under your name or your parent's name?

Should point out a couple of things here. First, don't settle this ASB loan. We want to take advantage of OPM. At your age, you should always make sure that the loan is at max tenure all the time so as to minimize your monthly payments and get back the ammortized portion. Secondly, if you're going the 'rolling dividend to pay next year's loan' route, don't ever pay annually. You will lose out on the compounding interest. You wanna pay as late as possible, just after they lock in the interest for the month. Also, interest on the loan is probably lower that what you are paying now so you should terminate and reapply as soon as possible. And when you reapply, go for the max tenure here again. Don't worry about the never-ending tenure. It is a non-factor here. Totally ignore it.

If you're rolling the dividend, at the end of 30 years, you would only have 200K. This ASB loan tool has so much more potential than that!

Since you have monthly wages now, and if you can afford RM 1,000 per month and assuming the banks approve your loan, I suggest you don't touch your dividends and let it compound. Here is what I would do if i were you If the current loan is under your name). Terminate the current loan very early in the month and get back the ammortized value. If the loan is already 3 - 5 years, you should get back RM 3k - RM 5k plus some insurance premium back as well. Do with this amount what you will or you can start your ASB2 with it. Immediately reapply your loan and push the banks to disburse the amount into your ASB within the same month! (cannot stress this enough as it will effect your dividend and your bonus dividend)

Keep paying the monthly from your salary and don't touch the dividend. After 3 years terminate and reapply to get back the ammortized value and take advantage of the bank's competitive rates. Again, timing is crucial to make sure that they put in the money in the same month you terminate. Rinse and repeat every 3 years.

Ok i'm gonna be your fortune teller here... barring any unforeseen circumstances. After roughly 10 years, you would have earned 200k in dividends. Free to do as you will! From here on, you will be earning dividends on 400k (200k cert + 200k cash dividend). Plus if you terminate/reapply every 3 years, you would have additional 10k

If PNB still limit loan size to 200k, and your salary in the last 10 years probably would be substantially more, you can start your ASB2 loan. Sooner even if your funds allows it. For me at the time, PNB allowed 400k loan so what i did was took out that earned 200k dividend, transferred to ASB2 and applied 400k loan on ASB. So earning on 600k yearly. Then when the banks allowed loans on ASB2, I applied the 200k ASB2 loan and transferred the 200k cash to ASD, now earning dividends on 800k (400k ASB; 200k ASB2; 200k ASD). Of course during that time all of them were earning dividends for me so now I'm close to earning dividends on a Million yearly. More when it compounds.

As I've mentioned, we don't know maybe PNB will open up again so you need to be ready for when that happens. So you should focus on this medium-term goal. Once you reach that 10 year mark, reevaluate your position. The financial climate and landscape might be different then so no need to look too far ahead. Sometimes planning too far can be a liability or a hindrance as it closes your mind to possibilities as you are too focused on a target in front of you that you fail to see what's to your left or right.

To quote you, "I see myself here at an advantage to maximize returns and getting early capital gains". This is very matured thinking and hats off to you for having that early realization. Youth is your main asset here.

Hey Bro PrincZe, I think you've gone a little astray in the concept. Let me try to explain or maybe bro Haziq can explain better in figures 

But firstly, what does the 36k represent?

Anyway, let's set the scene.... so you take 200k loan and you pay 1k monthly for 3 years. Assuming @ 7% dividend, you would have 245k in ASB by now made up of 200k sijil pledged to the bank and 45k of earned dividend in cash. You've paid 36k in installments and you have 27 years left in your tenure. Your outstanding owed to the bank will be less then 200k but that's not important.

Clear on the scene above? Ok now what do you do?

On the 1st of the next month apply to terminate the current loan which has 27 years left and immediately re-apply the loan for 200k again for the max tenure of 30 years. Don't worry, the bank officer should be used to this procedure of terminate/re-apply. Only thing is that you have to make it clear that they (the bank) have to disburse the NEW loan within the same month which could be very frustrating. I'll explain why later.

What happens when you do this? the bank will dissolve the 200k sijil and settle your existing 27 year loan. This leaves you with only 45k dividend in cash in your ASB. So for roughly 2 - 3 weeks until your new loan is approved and disbursed, your ASB will only have 45k in it. Then the bank will do their due diligence and process your new 30 year loan application and if all goes well, before the end of the month will put back the 200k sijil into your ASB making it 245k again

So where do you stand after this whole process? Your loan is extended back to 30 years. And you have 245k in ASB (200k sijil + 45k cash) ready to earn you that compounding interest at the end of the year. And you continue to pay for the next 3 years before repeating the process. And as a bonus, you get back 3k in ammortization which you can spend to get that new iPhone/Samsung to reward yourself for being so disciplined in making those monthly payments!  

Bro haziq, correct me if I'm wrong please.

Your ASB size grows together with your dividend and not limited to 200k. And once it's reached a certain size, it will always remain at that size. It won't shrink back. Essentially the size of your ASB is now the last max balance you've had before.

For example, now you have 245k, and if you take out 45k to buy that MyVi cash, you can put it back in next month.

To answer your question, even if your dividend is 500k, you can apply for 200k loan.

FYI, I actually have a 400k ASB loan because my ASB size has reached that amount. But of course PNB limited the loan to 200k only now. Those days were 400k limit.

And for this very reason my advise is to grow that ASB size as quickly as possible so that when PNB opens up the 200k loan limit to 300k, 400k, or even unlimited, your ASB size is ready to take advantage of it.

You don't want to be in a position where PNB suddenly announce tomorrow that they are raising the loan limit to 400k but your ASB size is only 300k.    You have to wait a good 6-7 years before you can take advantage of it. That's a missed opportunity to me. 

1) 3-4 years is optimum to me. Leave it too long and you cannot use the ammortization you get back to earn you interest elsewhere. It would just be sitting there at the bank earning them the money! Also, this is to ensure that you are always getting the best and most competitive rates.

2) Bro, if you do it for 30 years, at humble 6.75% and if you don't touch the dividend and let it compound as I suggest, you are looking at just over 1.4M dude! not 450k, And, you have paid only 360k (1k x 12 x 30). That's a nett gain of 1.1M! And that's not even counting ammortized values. Somebody correct me if I'm wrong.

3) now Banks are offering 4.9% to 5.2%. The lower the better. You gotta negotiate and talk to them to get the best rate. They would look at all factors to see if you qualify for their best rates. If it ever gets higher than ASB dividend then just backout.

If u take loan with mbb i assume ur loan is for 25 years and with max takaful.

How much u pay now monthly?
How long have u served ur asb loan?
What rate when u apply?
How old are u now?

I need this info first so i can help u better.

If u want to terminate and refinancing is advisable to do so. However for 4.8% is not possible because it will at end of this month while terminating process will take about 1-2 month. If u seek for 5% loan with tenure 30 years and no takaful this one possible. For 160k monthly will be around 858/month.

You are most welcome! Happy to share
I am not supposed to share out in the open. In any case during application signing when I meet with the customer, they would know since they can see the bank form.

Guys, with all these dividend announcement talks aside.
Got a question on cc application. I have a feeling that this asb finacing is affecting my cc application. Its taking 26% of my income. I applied for hsbc, public bank, citibank and standard Chartered. All rejected my application.
I have 5 other cards (mbb/cimb) with total limit 20k.
No outstanding/latepayment
What the heck... im missing out on freebies...

Theyre marketing thier cc pretty hard, yet they dont want to approve.

maybe bank refer to ccris & ctos..
all bank reject me except maybank..
dulu apply asb2f then maybank offer visa infinite card-i
after a few weeks baru tahu got annual fee RM800
change to petronas ikhwan..
now got service tax RM25

OK, its up to you. As I say everything were offended you. For me, if possible, I got RM200k cash, I won't choose to loan from bank. Just put RM200k cash directly, it is the best and most return because loan from bank we need at least 5 years to get return after deducted to bank interest. That's why loan in shortest term is the best, the shorter term we loan, the less interest that we paid to bank. So should get certificate and settle earlier then enjoy my loan free life with my RM200k and compounded dividends in my ASB account for the following years.

It's not so difficult to calculate actually as I like to calculate everything. I was studied Accounting & Finance before as a Bachelor of Commerce.
That's why I say not worth to extend your loan to maximum 30 years, interest is too high. I'm not talking about interest rate, of course interest rate is low but you need to first calculate it first to know how much the "Future Value" you need to pay in total. Just either take out a Financial Calculator or use Excel to calculate your future value. Frankly speaking, bank also need to earn your money. If not why the bank can get so rich and every year earn profits? You can see everyday got so many salesmen and saleswomen hard sales ASB/ASB2 loan, bank need these kinds of income. They need to earn our money.