dividen+bonus ; ASB > ASB2
CIMB > Maybank

Affin offered 5% for ASB loan. But finished already last month.
I believe current best rate is from CIMB

Yerp, at the moment CIMB offer the best rate, 
Why maybank why...

Hey guys, just want to clarify why some people feel that it is more beneficial to terminate asb loan after 5 years and re-apply a new one? I still don't get the idea.tq

You will still enjoy the compounding interest regardless whether you terminate or not as the dividend is already in there. So even if you terminate and reapply on the fifth year,  you still have that 200k sijil and whatever accumulated dividend up to that point to compound. The only difference is that if you don't terminate and reapply, you don't get the amortised value.

Altho your loan will be shortened by 10 years as opposed to just 5 if you terminate

wrong bro..
200k + 14k (dividen) = your account expand to become 214k.

can take out 200k sijil, (terminate) and reapply 200k easily.. no problemo..

Yes.  When terminate you get back the amount you have paid minus interest (amortised amount).  You don't get the sijil as that belongs to the bank.

What I meant is you still have that 200k sijil because you have reapplied the loan. Hence no effect on compound interest when you terminate/reapply as compared to if you don't terminate.

If you terminate but didn't reapply, then of course the sijil you give back and you are left with whatever dividend you have earned + amortised amount.

You got it!, take out and put back in. They never knew what hit them!

That's what I personally did. Every 3 years, rinse and repeat. You should be getting back approx RM 9,000 in amortised value. Now that's about 3k a year in addition to your dividend, effectively raising the dividend rate to about 8.5-9% !!! You can spend the 9k on yourself and splurge on something useless if you think you had worked hard for it (which I did that 1 time) or reinvest that 9k in other funds or TH to earn you even more in interests/dividends...

If you wait 5 years before doing this, you will get back approx 15k

But I can't do this anymore because PNB caps the loan amount at 200k only. I'm now on 400k loan. So if I terminate, the bank won't allow me to reapply 400k loan. So for me, this loophole is closed. But for those starting out, exploit it to the max!

Sure bro, at least you're doing something.

But my advice, try to max out the 200k loan as soon as possible as the longer you wait, the more you lose on opportunity costs. If the banks allow you to loan up to 70 years old at a max term of 30 years, then you only have until age of 40 to take advantage of the terminate/reapply strategy. After that, you cannot take full term loan anymore which means everytime you reapply, your monthly repayment will go up due to less number of years (on loan)

If you can, push yourself a little. Treat it as forced savings. I took the full 200k loan @ 25 years old paying 1.1k on a measely 2.6k per month. Those were hard times, but it'll only get easier I believe. Of course, only you can decide your priorities at any given time in your life. Good Luck!

on9 je bro.. m2u have it.. im not sure about cimb (or they sure have it too in their website)

In case you forgot, if you want to do that,make sure you take longest tenure and minimum insurance to maximize your profit.

Can't remember.
By default bank will push for full loan period. Actually you can apply for less. Even only up to 5years.

You can check Maybank repayment table here
Lets say RM200k for 25years. According to table its RM1,193 but plus 25years insurance, I'm paying RM1,224/month.
If you plan to terminate and reapply every 3years, there is no point taking long insurance period anyway.

Compulsory. But you can negotiate the insurance period, and its all depend on bank and your agent.
Maybank usually don't allow shorter period. Affin & RHB ok. CIMB not sure.

Yes

It is a good offer indeed..but again hassle and tussle with bank documents really make me headache