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 ASB loan, worth to get it???

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masami
post Jul 30 2010, 08:59 PM

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I have to agree with *7* your calculation is a bit off. you didn't reinvest the dividend for the ASB loan but you reinvest (compounded interest) for self saving hence the big different.

I try to calculate using the ASB calculator

ASB loan at the end of 20th year RM 511204
self saving at the end of 20th year RM 389000

IMHO provided that the BLR does not rise above the dividend than the ASB loan is feasible
masami
post Jul 31 2010, 07:35 AM

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My calculation is based on the amount given that is Rm 642. Interest and principle payment are already included in the amount RM 642 ( The amount needed to be paid for the next 20 years) as opposed to self saving of the same amount.
the difference is, through ASB loan the dividend is compounded from initial amount of RM 100000 whereas for self saving it starts from 642.

I not sure if u understand this... please google ASB calculator and calculate yourself

then again the BLR is on the rise. As I said before, last year the effective rate of BLR is around 3-4.This year the BLR has shoot up to 6.3 so the effective rate is around 4.7. Even at 4.7 you are still leveraging on the 8.5 percent ASB dividend. but if it rises more than 7 something than i think self saving is better.
masami
post Jan 5 2012, 03:41 PM

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sure or not bank muamalat...
currently only 3 banks offer asb financing

maybank blr -1.65 up to 25 years
cimb -1.65 up to 20 years only
rhb..nego up to 25 years
masami
post Jun 21 2013, 07:17 PM

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QUOTE(acexii @ Jun 21 2013, 05:30 PM)
You must understand with asb loan before you take it. It not simple as asb dividend - loan interest = gain. You must understand with term principal, interest, dividend & compound dividend.

Asb loan is not similar to personal loan or car loan but it more toward to house loan (each installment will reduce the principal)

And please do not served the loan till end of tenure, you will lose lot on your capital gain.

One of the method already shared by Masta Lucifar rclxms.gif
*
yes sir, u are absolutely right..it has been discussed extensively in the other forum. i've done it..200k loan and i then terminated it on the second year. and my gain was more or less the same as the amortized amount..

dont forget that u will get approx 70-75% of gasbritt surrender value.

all in, my yearly roi was around 25% way more than 7-8% if u save urself
masami
post Jun 23 2013, 09:21 AM

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QUOTE(kazama82 @ Jun 23 2013, 07:35 AM)

Yes, asb loan will be included during calculations of your second house. I have a friend, unable to apply car loan due to already taken asb loan 100k..so he have to buy his car under wife name instead.
*
yes ur commitment i.e asb loan will be taken into consideration when applying a new loan. it will weigh down ur chances. but speaking from experience i hd no problem with my new loan provided tht u go for the same bank for ur mortgage or car loan.

better still, apply with the same officer. he/she will be more than happy to assist you. i personally did a check with maybank rhb and bank islam and was told that they dont count asb loan as commitments. that said it, i do think tht it depends on the officers as there is no clear cut guideline for this.

masami
post Jun 24 2013, 09:26 AM

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yes u can
masami
post Jun 24 2013, 01:34 PM

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QUOTE(mhisyam6 @ Jun 24 2013, 10:33 AM)
Yes, we can only do deposit but we can't see our balance in our account. Transferring duration to ASB acc is 2 days. Make sure your ASB status 'ACTIVE'.
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i think what he meant was whether he can see his loan acc in his m2u under loan section..the answer to this is yes..i think as long as the loan is under our name and ic number whatever loan that we hv with maybnk will appear..at least mine is like tht.

and yes we can top up our asb acc thru m2u but we wouldnt be able to see the acc. i hv made a mistake of depositing some money into my asb acc only to be refunded the next few days not knowing tht i ve exceeded the amount.

masami
post Jun 24 2013, 05:07 PM

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QUOTE(acexii @ Jun 24 2013, 04:10 PM)
Please consult your loan officer. Also check back your loan agreement on locking period, exit fee...

Make sure you understand the agreement before terminate the loan.
*
yes..when it comes to loan termination one must be very careful. do check with the bank on the outstanding balance. or alternatively check in m2u under loan outstanding balance. or get a financial calculator from playstore n calculate urself.

generally if u hv been serving the loan for a period of 24 months with no blr hike, then there are some money to be made through principal payment if u terminate the loan.
but for me the most important part is to get ur insurance refunded. this will form the bulk of ur roi.

but if during tht 24 months period there was a blr hike than the calculation will go haywire unless u request to pay the new installment. otherwise u will get a lesser amount from the one u calculated with amortize calculator.

if yours is under mybnk islamic then there will be no lock in period, penalty watsoever if u terminate. mine was under maybnk islamic but with lock in period(the earlier version has a clause for penalty) but when i teminated within the lock in period i was not subjected to any penalty i was informed by the officer the the new ruling of no lock in period work retrospectively..so yeah no penalty.
masami
post Jun 24 2013, 05:07 PM

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double post

This post has been edited by masami: Jun 24 2013, 05:11 PM
masami
post Jul 1 2013, 10:22 AM

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QUOTE(Mr.Docter @ Jul 1 2013, 09:21 AM)
Hi acexii,

1 - Thank you for the information. I don't study other bank as Maybank the only bank that provide loan that coherent with Islamic way (personal preference)

2 - "Start asb loan whenever you have extra money spare" - Yes! Can't agree more on this one.

2.1 - We CAN'T add the loan amount. Example - Loan 30k but want to increase to 100k. BUT we can max up the ASB by having pre-existing 30k and apply another loan for 170k. Hence the nett will be 200k. - Source : That beautiful miss whom handle my application.

2.2 - I wonder what is the consequences if you intended to cancel the loan. Based on my understanding, it is quite easy.
*
the consequences is..u get more money by doing this rather than keep letting it sleep in that dormant principal but.. how???
actually..the concept is really easy your monthly payment comprises of interest and principal. after x years of servicing the loan, your have manage to pay down the principal.
now once u terminated the loan u will get the principal back together with the insurance surrender value.

to grow more u put this money in other pnb product such as asim etc. which will give around 6-6.5 anually. instead of 0 return if you let it rot in that principal.

my point is..u stand to lose if you service the loan till the end, but if you do this ( by terminating the loan and apply for a higher amount) u will get better roi.
as i said before in this thread.. your roi can reach up to 25% by doing this.

if u are not sure of the term used here. u might want to google first for better understanding.

cheers



masami
post Jan 14 2014, 10:39 PM

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QUOTE(luqe @ Jan 14 2014, 06:31 PM)
Depends on ur discipline and needs.
If u jenis yg no discipline, take asb loan...u hospitalized ka, kahwin ka, dapat anak ka, car broke down ka, petrol naik rege ka, mau beli rumah ka, u have to bayar to bank / terminate loan kalau xmampu bayar.

If u know cincai2 (after consider any unexpected event) u can save at least 1k a month, better don't sign for loan.
4 years ago i use loan coz wanna force to save. after 13 months i terminate to get money. That saved me during that day.
Now i know i got much spare so decide to not use asb. I did all the calculation in Excel and found out a very surprising fact:
Case scenario 1 : asb loan 100k term 10 yrs, monthy rm1059..
Total bayar ke bank: 1059*12*10 = rm127,080
Jumlah pendapatan (yearly div stays in asb, assume div 7%, include amount 100k): rm196,714
Untung bersih (money in asb after 10yrs - total pay to bank): rm69,634

Case scenario 2 : no loan, install rm1059 to asb monthly for 10 years..
Total bayar ke bank: rm0
Jumlah pendapatan (1059*12*10, consider all dividen assuming 7%, never withdraw $) : rm182,237
Untung bersih : rm182,237

Using Excel, correct me if wrong. U see? nearly triple profit compare to loan.
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assuming all the calculation are right..i dont think u are doing it right with the loan
the thing is..for loan u hv to leverage as far as u can
take the highest amount ie..200k and longest tenure 25 years or 30 for cimb.
u dont hv to serve the whole tenure..preferably 2-5 years..then terminate.. u will get ur principal portion of ur loan back

why u must terminate..to get the principal works harder rather than staying dormant in tht acc of yours.
not only that..normally u will fork out around 14300-15000 yearly for monthly payment..but u will get around 15600 from the 200k div..here u get extra 1k-1.5k.

all in all asb loan is wayyyyy better.
masami
post Jan 30 2014, 03:24 PM

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QUOTE(MaGNiFiCo @ Jan 30 2014, 09:37 AM)
they got offer. got 2 types conventional and islamic. blr are same. the different is only lock in period

conventional 2 yrs while islamic no lock in period
*
bfr for maybank islamic financing has been revised..it is now only -1.15 of bfr
masami
post Feb 3 2014, 12:42 PM

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QUOTE(potenza10 @ Feb 3 2014, 08:52 AM)
Bfr is still same...6.6%...
*
yes bfr is still the same 6.6
but the new new package is only minus 1.15 effectively 5.45
whereas the old one is minus 1.65 or effectively 4.95

so the old one is better..the new one is not attractive at all..for a smaller loan i think one has to top up the different in monthly payment and dividend.

but for maybank conventional... it stays the same 6.6-1.65
masami
post Oct 1 2014, 05:04 PM

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max tenure for cimb is 30 years now. and they also has asbi. but mrta i heard is still conventional.

maybank is up to 30 years or 65 years old

bsn is having a promo now blr -1.85
masami
post Oct 4 2014, 06:48 AM

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QUOTE(fnm83 @ Oct 4 2014, 12:14 AM)
Nothing free in this world bro. By loaning from banks, yes you are enjoying compounding interest, also good feeling of having 5 to 6 figures of ASB units and so on but it is not all yours,  you get some of yours and banks get theirs. Banks making money out of you till you finish paying their money back.

Please take note that most (i think all)ASB loan come with BLR base interest rate. Just imagine if BLR is sky rocketed  to 8%. Is it still possible to be covered by your yearly ASB dividend? We are not talking about total economical collapse here. Moreover the dividend rate is never guaranteed.

After all it is about discipline, as I said earlier, if you can pay your debt consistently why can't you do that for your own savings? It is far more profitable and some more offers peace of mind without any commitment to the bank.
*
for asb loan. it is practically free money. laverage is the key here.I understand ur line of reasons. but if study this asb loan thoroughly. do some research. im sure u will have a different opinion.

the drawback is. u might hv problem with ur housing loan. coz this asb is taken into consideration when applying for a new loan.

2 scenarios tht could affect asb loan.. blr shoot through the roof. and dividend falls under 6.5%.

if these unthinkable happened.. by all means..terminate the loan. most asb loan nowadays has no lockin period.

one more thing..my advise is..dont serve the loan till the end. ideally pay for 2-5 years and terminate. take out the principal. reapply the loan with higher limit. this way. ur roi would reach 30% per annum.



masami
post Mar 13 2017, 11:18 PM

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QUOTE(voncrane @ Mar 13 2017, 10:59 PM)
Bla bla bla bruh... Facts and numbers do not lie... Bank interests high.. ASB dividends getting lower and lower.. 1990 ≠ 2017.. 10 lorries make less money than bank loans.. lose money.. in the end still have to pay bank back.. signed contract.. bla bla.. wrong analogy... Numbers don't lie.. no matter how you spin it.. The rich get richer.. Take a chill pill.
//End rant.
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Wow..seriously..you keep repeating this nonsense. Infact buggie and haziq have been putting numbers and fact. You on the other didnt produce any. And yet claimed fact n numbers dont lie..why not u counter the calculation one by one to make ur case. Put it nicely so that everybody will see.
masami
post Mar 14 2017, 05:39 PM

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QUOTE(buggie @ Mar 14 2017, 03:19 PM)
Interesting thing about that CCRIS to share. When I was applying for the ASB2 loan, Maybank actually viewed my ASB loans as income rather than commitments. I was quite surprised when the loan officer told me that. But not sure whether that officer was ill informed or not. But i gathered from other Forums that most banks view it as a commitment. Maybe it's a maybank thing.

Awesome thing about that terminate thing huh... I've terminated and reapplied 5 times already to get back the principal sum. But unfortunately can't do that anymore since I can't get full tenure anymore. Age is catching up fast...  cry.gif
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i am only on my second cycle this year..too bad i did it when i was around mid 30s..btw i think i am as old as u..if not older. I will still terminate and reapply even if i get less than 20 years tenure. Theres still some money to be made.

In fact i am so confident that i rope in 2-3 proxies..the good thing is..everything went well on the first termination.They were glad that they did received something by virtually doing nothing. But of course it is still very risky.

masami
post Mar 14 2017, 06:04 PM

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[quote=buggie,Mar 14 2017, 05:47 PM]
I'm 41. cry.gif And I just applied ASB2 loan this year. So in 3 years I would be doing research and calculating whether still worth to terminate since after that my monthly would be higher due to the shortened tenure.

As for ASB, I have no choice. I cannot terminate anymore because I'm on 400k loan. If I terminate now, I would only be able to reapply 200k. That to me is a loss. So i'm just putting that on autopilot now until PNB allows 400k loans again.
*

[/quote


I understand that. I managed to get loan of 265k only.tried applied for 50k more after that but was told pnb has stopped loan over 200k. My current limit is over 300k. Wish pnb allows 400k again. But maybank is only our option sadly ins is a must with them. anyway i am willing to lose my 65k with termination..rather than leaving the principal idle.take the principal amount out and put in my kids asb account.
masami
post Jun 27 2017, 03:38 PM

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QUOTE(haziqnet @ Jun 26 2017, 01:31 PM)
Yes correct for now yellow bank insurance still compulsory...only cimb bank and some other bank insurance is not compulsory...
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I have successfully negotiated a financing with yellowbank without insurance. But this really depends on ur portfolios. I terminated 1.6 millions worth of asb financing and reapply the same amount without insurance. If they cant agree to my term l take my biz to the other bank who are more than willing to accept..and lo and behold the approved mine
masami
post Jun 27 2017, 07:20 PM

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QUOTE(haziqnet @ Jun 27 2017, 06:22 PM)
You can actually...if u already max your loan 200k for asb 1 and 2, you can use joint applicant to apply another 200k loan...i have a friend who already commit 1.2 million worth of asb loan using this technique...
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Yup..this is what i did..theres no secret to it. me n wifey 800k asb1&2. 2 proxies..the same amount. Luckily the yellowbank also extend the tenure up to 30 years. Obviously i stretched it to the max..since i am an anker here i managed to get 25 years max only.

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