ASB account cannot. But you can open a few loan accounts, as long as the total capital does not exceed 200K

Just look at it like this. Let say you are taking the 200K loan. So one month give or take RM1170 according the Maybank loan table. You pay for the first year, then starting from the second year onwards, you use the dividend and bonus to pay (Last year was 7.50% with bonus 1.25%) So how much capital that u used? RM1170x12=RM14040. Assuming the dividend rate stays stable, after 25 years you will get give or take RM470K in your ASB.
So initial capital RM14K. After 25 years turns into RM470K. You don't have to be a financial expert to see that the percentage of gain is BIG!
Entering second year, you don't have to service the loan anymore,you use the dividend to service it. So 1K extra per month to invest in other investments vehicles (Gold/other UTs/Property/etc) The key is to diversify your investments. You have the comfort in mind that after 25 years, there will be half a mil waiting for you.

BTW, this is a good ASB calculator using Excel spreadsheet. Download and play with it for a while. You will see my point.

http://www.irwan.biz/asb-calculator-v3/

This post has been edited by spikey2506: Nov 2 2011, 09:41 PM

Nope. Don't take all the dividend. Just take enough to service the loan, which is RM14K plus. Leave the rest of the dividend inside. Last year's rate was 7.50 and bonus 1.25, so you will get around RM15K plus. After first year instant 1K profit. Leave it inside, and with each passing year, do the same, never take more than the amount to pay the loan. With the power of compounding interest over 25 years, it will grow.

This post has been edited by spikey2506: Nov 2 2011, 09:44 PM

Currently, still worth it. MBB's lock in period is two years. If after that things doesn't go ur way, you can always cancel the loan. The dividends are still yours.

That's the main reason I took MBB, coz it offers 25 years tenure.

Yup, precisely. After that just contribute your own capital into it

Exactly. That's why I didn't bother to reply to posts above you. They cannot see the point that we've been trying to make

We pay from the DIVIDEND. Get it? After the first year, we are free to use our money to invest in other things. You only pay for the first year. After that, you don't have to pay. Use DIVIDEND. Then, you can use your OWN money to invest in mutual funds, gold, silver, property, etc, while you get FREE money from ASB. Can you brain that?

Did you read the part that I said from the second year we can invest in other things? It's not like I put all my eggs in one basket. Oh yes, if emergency struck, I can get money from my Public Mutual, Gold, Silver. I can even sell my properties.

As per BNM latest directive that personal loans must not exceed 10 years, I guess ASB loans fall under this too? Or is it not? Any bankers can clarify?