for investment, u always and always look for higher return with minimum monthly commitment.
take longer contract period so that u can minimize your monthly payment
take higher amount so that u can gain higher profit at the end of financial year
dont rush to settle the ASB loan.

You understand that right. So monthly saving is better at this point(the initial 30k)? I've calculated it and indeed a loan will set me back a few grand...

It just that I don't have any CCRIS record before(all stuff paid in cash; no CC). I'm just afraid that I can't secure the 200k ASB loan later on if I don't have any proven track record and already serving my housing loan at that time. Say my monthly salary is 4k, 1.5k/month for housing loan, no other commitment, is the 200k loan achievable?

Correct me if I'm wrong 

no worries. I guarantee they will approved you.
bank earns when they lend you asb loan. the dividends pays them back. no you, literally

Adui abang, dah silap kira dah ni.

It is correct that you paid rm127,080 to the bank. But you cant use the below calculation to compare between loan and self saving.
Because, if you want to be fair then you have to use the same calculation for case 2:

You deposit 1059 per month, then you are "paying" to ASB RM127,080

Thus, "pendapatan" according to calculation is:

Jumlah pendapatan (yearly div stays in asb, assume div 7%, every month depo 1059): RM182,237
Untung bersih (money in asb after 10yrs - total pay to ASB): rm55157

Hence, the difference between case 1 and case 2:

rm69,634 - rm55,157  = rm14,477

rm1,447.7 per year profit if you use ASB loan.

P/S: Why does this happen? It happens because of compounding power. You are compounding an amount so big that you can gain profit. But from my calculation, it is not effective with small numbers.

Mine is Maybank but I forget 20 or 25 years

CIMB that offered 25 years, how's the rate?
On the side discussion, anyone know any bank staff? I wonder if they entitled to get special rate as staff.

Think carefully before you apply for ASB loans. Simply as that. No more explanation 

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.

don't worry if blr increase.. surely bank will offer competitive rates because asb loan is a win-win situation. if dividend can't cover loan installment , no one will take asb loan. bank pun rugi maaa...

but the dividen we get is less than 1 cert 100k right ? [ correct me if wrong ]

ASB2 loan?

Below are the criteria..

BFR-2% is given for two customer categories set by Maybank which is HNW or Affluent customer..

HNW - you must have cash about RM500k in Maybank acct (if not mistaken).
Affluent Customer - must have more than RM250k loan with Maybank.

Please correct me if I'm wrong.

Hello all, wanna ask those who had surrendered/terminated their ASB loan.

Loan amount: 200 000.00
Outstanding cost of finance: 202 357.54
Loan tenure: 25 years
Payment
Dec 2013-Nov 2014: 1199 monthly
Dec 2014 onwards: 1233 monthly (after revised BLR)

When is the best time for me to terminate this loan?
I wanna apply with other banks, Maybank's not the best choice currently.
I got 2 months dividend (Nov&Dec 2013) last year. Haven't withdraw a cent. Please advise. Thanks.

Yes. They usually surrender after 2 or 3 years and get back the amortized value of the insurance and installments paid. Then they retake the loan again for the full 30 years again.

The monthly repayments remain the same, dividends untouched and the loan extended They get a few thousand back to reinvest or top up the ASB if not full yet to reach the max faster

Basically like remortgaging .... Very technical stuff.... goes all the way down to the timing of these transactions so as to not lose even 1 month of pro rated dividend!

Basically, the 1200 monthly payment to the bank is made up 2 parts - principle and interest. Principle belongs to you and interest belongs to the bank.

Usually at the beginning a any loan, the interest portion is higher than the principle. and towards the end, principle is higher than interest. for example, your first monthly payment will be made up of 200 principle and 1000 interest (not actual figures.

So if you terminate the loan after 3 years, you will get back the principle portion of the monthly repayments for the last 3 years. This should come up to about 7k upwards i think. The interest portion bank keep la.

So some investors will surrender the loan every 3 years (or 2) and reapply immediately. They get 7k to use as they please or to reinvest in ASB2 depending on their financial goals.

The year end dividend is unaffected because the loan is re-taken. but your loan tenure will reset to 25 years/30 years.

If you're young, and monthly repayments are the same or lower then do it.

Latest news, no more ASB loan next year. They will offer ASB2 loan instead.

for your comparison:

i have submit my asb loan termination on 4th jan...settled on 21 jan 2016..get the money through cimbclicks

the GASA (insurance) also bank in through cimbclicks but later i.e 5 feb 2016

bank : cimb