Just reading more about ASB loan strategy.

- Lets say I already have 45k in my ASB.
- I loan 200k for 25yrs, 1200/monthly payment to the bank.
- So I split it to 200k in ASB & 45k in ASB2.
- I use the money in ASB2, to pay for the 1200/month for the 1st year.
- After that, I can use the dividend from ASB to pay for all the future monthly payments, and still have ASB2 for emergencies.
- At this point, I'll get dividend from both ASB & ASB2, while I still can top up ASB2 with my monthly income.
- Continue on until end of 25yrs and I might be a millionaire in my 60s.

Just wondering if this strategy would work in my case. Unless there are things that I still haven't taken into consideration.

At any point during the 25yrs, I can still terminate the loan, and still profit a bit too. Would something like this sound right?

The ASB amount doesn't increase past 200k? Is it because I use the dividend from each year to pay for the monthly payment?

Ohhh, I get it now. So it only works if I pay the loan off with cash, instead of using the dividend. Thanks for the clarification!

This post has been edited by borneoman1: Apr 9 2018, 07:09 AM

This is interesting to me now. I have around 60k in asb1. I'm thinking of taking asb1 loan 200k for however long, and just transfer mine to asb2 then just leave asb1 to compound while I maximize asb2.

What's the best way to get this? The lowest is 4.9%? Maybank?

This post has been edited by borneoman1: May 27 2019, 03:18 AM