ASB loan, worth to get it???
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 Apr 29 2009, 01:40 AM
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#1
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Junior Member
60 posts Joined: Apr 2009 
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wow....i tot this ASB loan is so simple but when i read all the comment and case studies it is not that simple anymore....
from what i understand Loan(100000) ASB Interest8%(8000) Bank InterestBLR5.55-1.25(4300) so Profit(8000-4300=3700) so basically i will get 3700 for free every year right?? but this is not the case after i read all your comments...so where is the flaw in my calculation |
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Apr 30 2009, 03:40 PM
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#2
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Junior Member
60 posts Joined: Apr 2009
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QUOTE(koopa @ Apr 29 2009, 04:15 PM) I dont know how they guy from the other forum calculate, but im pretty sure its wrong. ASB loan is like a housing loan right? It is reducing balance and not like a car loan/hire purchase. there is a talk of mixing asb loan and OD....can u explain to me how does that work...i mean why does it gives you more profit?Please correct me if im wrong. I remembered there is a blog somewhere he did the same calculation as what mooze quoted, after a few months he corrected his calculation and say is better to get a ASB loan. That aside, consider this: RM100,000 ASB loan with current BLR rate for 20 years. RM100,000 x 8% (conservative) for the 1st year = RM8000 Payment for the year = RM620 (today's rate) x12 = RM7440 Ofcourse u only get extra RM560 But use the RM8000 from the 1st year to pay for Year-2 That means your year 2 is free. Do the same for next year and keep on doing that. After 20 years, with just RM7440 you get RM100,000 free. Summary: 1. First year pay RM7440, 2. Use RM8000 from prev year's dividend to pay for next year. 3. Repeat step 2 for the next 19 years.  |
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Jul 22 2016, 11:21 AM
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#3
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Junior Member
60 posts Joined: Apr 2009
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Loan hunting at several banks this past few days.
CIMB : 5.1% -might get 4.8% if using family plan(loan under your name for family member account) -insurance not compulsory -30years period Maybank : 5.2% -give me false hope as they said they can give me 4.8% during consultation, later tell me they need to increase because I dont have loan with them(I specifically told them i have CIMB LASB during consultation) -25years period -insurance not compulsory RHB : 5.2% for first 4 years and 4.8% afterwards (this rate 2 days before OPR reduce, not sure current rate) -25years -insurance compulsory I guess now is not really a good time to take LASB, Banks are still adapting to the new OPR and give contradicting advise. I will take a wait and see approach until I find a better deal. |
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Feb 22 2017, 10:02 AM
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#4
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Junior Member
60 posts Joined: Apr 2009
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Hi all. My CIMB banker told me there is a new promotion for ASBf now with 4.8% interest if you pair with min RM1000 in UT investment. Looks like a good deal for me. Any other bank doing the same?
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Feb 22 2017, 05:33 PM
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#5
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Junior Member
60 posts Joined: Apr 2009
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QUOTE(MiNoRiT @ Feb 22 2017, 10:13 AM) Hmm would they allow for existing CIMB loan owners to apply for this? I guess so bcos I also already have existing loans with them. |
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Feb 24 2017, 09:59 AM
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#6
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Junior Member
60 posts Joined: Apr 2009
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@Haziq
Thanks for the clarification. But I think the pros are still more than the cons. We are getting 4.8% instead of the normally given 5.0%. Thats 0.2% discount. If for example I take 100k loan that easily translate to around RM200 saving per year. If I plan to hold for at least 3 years (which is the min to get some decent return) then the saving will be even bigger. So I believe RM1000 is really nothing compared to the saving in interest rate that I can get especially if I am planning to hold for long to medium term. This is a no brainer choice for me even with the UT risk. But of course if other bank can offer similar low rates without the UT pairing requirement then that would be even better and should be our first choice. Lowest interest rate is my priority especially since the return from ASB is getting lower and lower.  |
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Oct 9 2017, 06:12 PM
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#7
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Junior Member
60 posts Joined: Apr 2009
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QUOTE(cmx1958 @ Oct 5 2017, 10:36 AM) It is not terminating and reapplying process, its switching. So, it will be done internally within your bank, not PNB. The officer told me it will take around 2 weeks max. Can you advise which bank is this? I asked my banker in CIMB and she doesnt have any clue about this switching thingy. |
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May 18 2018, 02:19 PM
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#8
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Junior Member
60 posts Joined: Apr 2009
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I have lots of free time during lunch so let me make a comparison between 20years loan vs 30years loan assuming you can only pay RM537 per month. Conclusion: longer the loan term = more profit.
ASBF 100000 | 81500 Interest Rate 5% | 5% Loan Term 30 | 20 Monthly Payment 537 | 537 ASB Dividen 6.50% | 6.50% Terminate at 60 months (Total Payment after 60 months) 32220 | 32220 Dividen 37000 | 30162 Principal 8172 | 10328 Net Profit 12952 | 8270 Terminate at 240 months (Total Payment after 240mth) 128880 | 128880 Dividen 252364 | 205677 Principal 49388 | 81500 Net Profit 172872 | 158297 This post has been edited by vondutch: May 18 2018, 02:22 PM |
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May 18 2018, 02:34 PM
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#9
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Junior Member
60 posts Joined: Apr 2009
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QUOTE(voncrane @ May 18 2018, 02:23 PM) LOL wut... Nice try. Now redo the calculations with the exact same 100k for both terms.  Modified the post assuming same monthly commitment of RM537. I think this is a better comparison as basically our commitment are the same for both term. |
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Jun 1 2018, 11:49 AM
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#10
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Junior Member
60 posts Joined: Apr 2009
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I think what he meant was that by terminating end of the year you will get the full dividen on that year and lose out the dividen on January.
By terminating middle of the year you would have to wait few more months to get the dividen and it will be a reduced dividen. Basically it is just a matter of convenience. But i agree with @wild_card_my, at the end of the day the amount of dividen that u get is the same. |
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Aug 23 2018, 09:06 PM
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#11
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Junior Member
60 posts Joined: Apr 2009
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Aiyooo. Why this thread so hot today.
Why so difficult one. This is what i do: 1. Take max loan for both ASB1/2. Dont touch at all. 2. Dump all saving in Tabung Haji. 3. Once have enough emergency fund, use extra money to buy properties and stocks. I bought 1 subsale and 1 undercon using loan. Subsale prop give me rental income which covers installment/maintenance fees. 4. Be alert with current interest rate. Refinance asbf if worth it. I am not that savvy with financial management but so far i dont have much issue with this approach. Asbf is the best investment tools due to its simplicity. Property can be a bit headache sometimes. |
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Apr 29 2019, 06:03 PM
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#12
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Junior Member
60 posts Joined: Apr 2009
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Tried requesting CIMB to reduce my 5.35 interest rate. They told me no other way other than terminate my current financing and apply for a new one. Going to lose a month dividen. 😂😂
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Apr 30 2019, 10:51 AM
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#13
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Junior Member
60 posts Joined: Apr 2009
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QUOTE(wild_card_my @ Apr 29 2019, 06:08 PM) I have done the calculation for you guys in the previous thread (will link it once I am in the office), the interest rate savings is worth it. Currently the best rate is 4.85% p.a., and you are paying 5.35% p.a., the delta is 0.5% Thanks for the explanation @wild_car_my!!In general if your outstanding is 200k, at 0.5% p.a., the interest payable is RM1k a year. This is just a simple calculation, as you would be paying your outstanding each month through paying the instalment. But you get the idea. Or not? In that case I would have to do something about this... further explanations I guess I understand that i profit more by having lower rate but as i read somewhere in the forum someone mentioned that it is possible to request for lower rate without refinancing which means that i dont have to lose 1 month dividen. But apparently this is not applicable for me and only for those who have conventional financing where CIMB can switch to islamic with better rate. I have already set the motion to refinance and just waiting for approval from RHB for 4.85%. |
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Jan 25 2020, 11:00 PM
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#14
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Junior Member
60 posts Joined: Apr 2009
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What are the requirement for this? Applicable for all?
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Oct 11 2020, 11:00 PM
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#15
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Junior Member
60 posts Joined: Apr 2009
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QUOTE(Bora Prisoner @ Oct 11 2020, 10:41 PM) Maybe in future? Dont understand what you mean. I went to Maybank 2 weeks ago and they said new asb2 loan is still closed.Didnt I just point to you that asb2 is open now (according to someone’s post)? |
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