2017 dividen is 7%. Average dividen for asb is around 7%+ since established.

Dun wori about the interest u pay. Look at this if u apply asbf 200k for 30 years, at year 30 your total payment is only 387k (include interest) while your total earning is 1.6 million.

Bruh, while I understand why.. As a financial advisor, you shouldn't be making wide sweeping statements such as don't worry about interest being paid or assume that the fund will keep returning higher profits. 30 years is a long time and no real investment units can guarantee such. In the beginning, it began with double digits and now, they have to be creative to make it appear as 8%. There are real risks involved, good thing is the funds allows one to pull out and principal returned. You might want to highlight that instead. Just my 2 sen.

Firstly, there are 2 returns involved in ASB loan, one is dividend & bonus, while the other is surrender value.

As promised, below is the calculation of net return for the 1st year:

- Assuming a 200k loan was taken in Jan last year without takaful @ 5% interest while dividend for the year is 7%.

- Monthly repayment for a 30-yr tenure is RM1,074 so for the first year he/she has paid RM12,888 (1074x12).

- As for the dividend that they received in early Jan this year, it was 7% of 200k which is RM14,000.

- Hence difference of RM1,112 (14000-12888) between dividend and 1st yr instalment is one of the returns that they received at the end of the first year.

- In addition, there's also surrender value (principal amt) involved which is accumulated along the loan tenure - in this case loan balance after 1 yr is about RM197,049 therefore surrender value at the end of first year was 200k minus 197,049 amounting to RM2,951.

- So, to deduce the net return for 1st yr, we take total net return (1112+2951) over 1st yr instalment (12888) which is roughly 31.5%.

Of course, there's risk involved whereby interest and dividend are not fixed - however ASB loan offers flexibility in which it can be terminated anytime without any penalty charges so pretty much no worries on that.

Hopefully this helps, thanks

why die die also want to take rm200k loan?

mine is only for rm45k because i want my monthly repayment to be under rm250 at the time

I wouldnt say there is no chance, it has happened to me once before when the interest was higher than the dividend. Cant remember when exactly cause it was more than a decade ago.

So anyway, I just cancelled and refinanced.