Hi guys, am new to the forum, but am actually a banker with experience in ASB loan. Please feel free to ask any questions and will try as hard to answer.

For your questions Tradefameplz:

Q1: Why max tenure and why not shorter tenure to pay less for the loan.
A1: Most people are in the ASB Loan/financing game only for 3-5 years. So might as well pay lower installment because you are not going to serve the full tenure. You will still receive same dividend although it also means lower principal balance when you cancel the loan.  Short term game,  you will save more if you maximise the tenure.

Q2: Why cancel in 3 to 5 years, would it be better to settle off the loan.
A2: Depending on the goals of getting the loan in the 1st place. If you have a long term goal, go for long term or settle off the loan. If you plan to use the money in 3-5 years and is using ASB Loan for the means of saving, you cancel it in 3-5 years. In ASB Loan, you earn from Dividend and Principal Balance.

Q3: When to apply and when to start paying
A3: ASNB will calculate dividend pro-rated monthly. To get a month's dividend, the ASB Cert tied for the loan must exist from the 1st to the last day of everymonth. Saying this, ASB will reopen on the 2nd January, meaning the earliest your certificate can be purchased is on the 2nd January, hence you will not get January' s dividend for next year.
Apply now, ask the banker to hold until the said loan 1st installment begin in february.

refresh those who dont understand how asbf can give profit to customer read below

1st the distribution or we all know it as dividend.

2nd the principal. we will received the principal we paid when terminate early. it call as principal surrender value. Where the principal come? When u pay for your installment part of it is the principal and another is the bank profit or known as interest.

3rd bonus. Each year asb will give extra bonus. But this year they use new formula to calculate the bonus based on 12 month only than 10 years before.

ASBF give more return than asb saving because of the volume. ASBF start from big amount while asb saving start from how much we save permonth.

Hope this will help to those who still new with asbf.

Profit from asbf is not simply deduct between dividend and interest (7% - 5% for example. its more than that)

Regardless what people said about the decreasing of asb dividend there are still many people who keep their asbf. Those who really understand the potential of asbf will never give up.

Maybe they just terminate n reapply to get lowest rates but still they are doing asbf.

Congrats to those who still hold their asbf. Hopefully the market will recover soon and this year dividend will increase a bit than last year hopefully.

cimb now offer rates 4.9 for those salary at CIMB and 5.0% for those who make autodebit CIMB account.

35 Year loan tenure still available.

That is after. If I am not mistaken, CIMB increased the spread after the HQ lowered the BR. So the ones who signed up with CIMB at 4.9 is getting 4.75%, but the new applicants can only get as low as 4.9%

The current lowest rate for new applicants is 4.75% p.a.