Just to get full dividend on it. No issue if you taking now. I taking my first 100k asb loan few years back around Oct. Yet I still manage to get 2k+ dividend from it. Notbad.jpeg
btw, I suggest you to divide it into 100k + 100k. Easy for exit plan.

senyap saja semua, busy updating asb book?

any news about the pnb gonna stop asb loan? am planning to do it in few days and reapply to cimb for 30 yrs..

Longer tenure, lower monthly installment.. If u plan to roll your dividend to pay installments for 2nd year onwards u might want to consider your total annual installment vs dividend payout..

HI, good ppl of FBI

Im currently 24 years old and planning to get  ASB loan (200k) for 30 years.

As for now I have 15k cash and planning to put it lumpsump to cover 1 year's installment. So my question is:

Is it true that i dont need to pay for upcoming year's installment just by using the dividend? Because some of my friends said that due to the bank interest rate the dividend would not be suffice to cover the installment plan.

P/S: Pardon me if my knowledge on ASB wasnt good. Hopefully members of the forum could help me. Thank you in advance!

3k would be great assuming no property yet. Monthly installments around 1.1k  that would leave u with balance 1.4k +- after minus epf & socso.  Just gotta suffer the first few years and after 3-5 years repeat the process and u'll see some gains.

Asb dividend = 6.75+0.50

This is not a good sign.

Depends on your objective.
If you do it as force saving then go on cos it is still higher than your loan value.
If you do rolling dividend, you will might consider to terminate it.

I max ASB1 loan and been running for 3 years without withdrawing any single cent. I believe current rate is still acceptable. Rather than I simply spend the money at others. Haha.

Tbh, mebeng asb rate & tenure tak boleh pakai.

Looking at the divident now its impossible to get 100k for 5 years.. (5 years of 6.75% only get u a cumulative divident of 77k only)

let say i pay 1,200 per month for 5 years (200k loan maybank)
RM1,200 x 60 = RM 72,000 (to the bank)
divident 6.75 for 5 years (prediction) divident accumulated = RM 77,247

Profit of loan for 5 years: RM 77,247 - 72,000 = RM 5,247 

is it worth it?

is there a way to pledge cimb to lower down my current asb financing from 5.2% to 5%?

Depend on your salary. If got excess every month why not? Some sort of force savings.

I'm more surprised with SOME people buying phone more than their monthly salary 

Bro, no offense but i'm a little apprehensive when people say they can't afford. But everyone's situation is different at any point in time so I won't judge. But for me, I started a 200k loan when I was 25. Fresh out of Uni and earning 1800 per month. And at the time, interest on the loan was 5.2-5.4%! paying 1200 per month. Had only 600 to survive. Now 15 years later repayment is MUCH easier. Take a step back and relook into your finances and see if you REALLY can or cannot afford. You might be surprised. This loan works it's magic when it is taken as early as possible. The longer you wait, there is an opportunity cost which is a shame as you can't get back that time.

To answer your question, terminate every 3 years and reapply as much as you can afford. or until you can't get max tenure anymore.

Stop completely if the economy is bad and ASB dividend not attractive enough. When dividend is low, bank interest may also go lower. who knows.

We can apply 400k loan for ASB1 only?

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.

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?

So I had a face-to-face discussion with my father about the OPM method and he disagreed. Somehow it's quite difficult to discuss financial matters with people way older than you because they assume that they're always right in the matter and they dislike conflicting opinions.  I don't mean any disrespect and I know they are wayyy experienced in this matter...but as always its frustrating. 

Anyway apparently from what I understood from the discussion was the biggest issue with OPM method is risk (plus the hassle of queueing up at the bank every month - but hey we've got internet banking these days...so that's a non-issue). I never dealt with loan termination procedures before and apparently as a newbie I was made to be scared with every possible imaginable bank bureaucratic nightmare (delays in getting ASB loan re-disbursed, delays in getting back insurance premium, low principal to interest ratio in the early years of payment - low amortization).

But my father did agree with leaving the dividends alone though and using my salary to pay the monthly installments.

In addition I'm also being told the risks of getting laid off and not being able to commit to monthly payments when out of job - but I guess that topic would belong to another thread.

Now I'm having a frustrating dilemma of security vs maximizing gains.  :confused:

EDIT: This maybe a bit out of topic...but I wonder if ASB dividends can catch up with annual inflation rates?

I am asking on behalf of my next door neighbour akak who is not so tech savvy. Is it advisable to take ASB loan at 45yrs of age and with only RM500 extra fund per mth available for savings? She told me her ASB account already at 180k so I guess max loan can apply is 20k only right? Is it still worth applying loan? She got open ASB2 acct and already max 200k but $ in tht acct are not hers.. belongs to her sisters who tumpang her acct cos their own accounts apparently already penuh. At that time, she didnt think she will ever need ASB2 for herself as her ASB also not yet penuh. Now she said segan to ask her sisters to return the acct to her. Any advice for this akak on loan??😁