Hi Audy,

Would you mind to scan a copy to me now? As I am going to a meeting with the HSBC staffs tomorrow and I can ask about it on behalf of you.

mail: home_save@live.com



This post has been edited by home_save: Dec 20 2010, 12:32 AM

Chris, unfortunately I do not have access to a scanner. But here is what the note says:
-----------------------------------------------
PROGRESSIVE DRAWDOWN ADVICE

Dear Sir/Mdm,
Thank you for banking with HSBC.

We would like to inform you that the payment of MYR xxx.00 has been released on 06SEPT2010 on your behalf. Your facility limit is now MYR xx,xxx.00

Based on this limit, the projected interest of MYR 300.00 will be due on 13SEPT2010 and thereafter on 13th of each month until further notice.

-------------------------------------

Before I signed with HSBC, I was informed of the new mthly installment and the salesguy told me that all I need to do is bank this amt into my HSBC loan account. How come suddenly they tell me this amt has been released on my behalf and now got additional interest?? Can you help me to check cos the salesguy I liaised is out of town at the moment.

Thanks in advance.

i posted the above a few days ago.. anyone can advice me? thanks. 1st time buyer here.

Hi r47z,

Could you please share with me on the purpose of your purchase (residential, rental?) ? And, are you buying a under-con or completed property?

If it is going to be residential, you stay in it and didn't plan to sell it off within 5 years and plan to have the lowest monthly installment. OCBC might be a good choice as it can offer BLR-2.3%, 5 yrs lock in, legal fee financing and max 40 yrs tenure.

For all applicants, it is advisable to apply all the available packages in the town if you are not sure which one is suitable for you. By the time Letter of Offer is ready, then you decide whether you want the offer or not. It is just wasting your time in loan hunting (going from bank and bank to ask) while you are not sure whether the bank is going to grant you with your preference or not. Most of the time, you will encounter a situation whereby you want this package of this bank but they don't want you.

Let me know if you do need any help on this. You are welcome to call me and we can arrange a casual appointment to talk about this.

Have a good day.



This post has been edited by home_save: Dec 20 2010, 12:33 AM

Regarding Maybank's semi flexi, if i pay excess, is that consider advance payment or principal deduction ?

Kinda confuse here.

Any hidden clause in HSBC flexi ?

anyone encountered bad experience ?

Hi Alfredfx,

Common practice of the banks is that for any additional amount that you paid must be used to fulfill any outstanding installment or interest due. While the remaining of it will be Advance installment/payment and Redrawable-prepayment.

Certain letters of offer will state that any additional amount will be considered as Advance installment instead of redrawable-prepayment (used to principal deduction) if there isn't any expressed instruction given by the borrowers. (ie. Std Chr).

While some of them will consider this kind of payment to be redrawable-prepayment if there source of additional payment does not fall under certain categories, like the monies from EPF (ie. OCBC).

And, some of the banks require their customers to provide clear instruction of "Partial Prepayment" in order to execute the principal deduction.

Advice is, check on your letter of offer, look for the sub-clauses of "Prepayment" and read it thoroughly. Sometimes, reading can helps as the offers to each individuals can be varied to the others as well, even with the same packages. Most importantly, call and check with the officers on how you can do the prepayment for principal deduction. Each banks are doing their own way.

Hope it helps.



This post has been edited by home_save: Dec 20 2010, 12:33 AM

hi mortgage advisers ,

im looking for a housing loan, please email me (thk_22@yahoo.com) your good packages.

Details:
1. Apartment @ Seri Kembangan, completed.
2. Subsale, RM 168,000

Requirement:
1. MOF: 90% + 5% (if possible)
2. I'm 29 years old, how much should i pay for the MRTA?
3. Tenor: 30 or 35 years

i just paid the ernest deposit (2% of the selling price) to the agent. Hope can hear from you soon as im going to let your bank's panel lawyer to handle my S&P. Thanks.

Dear thk,

Most probably your rate will range from BLR-1.9 ~BLR -2.1. Need your credit profile and financial status to judge on what is the rate that you might be granted. MoF is uncertain as the condos located in Seri Kembangan is not a hot spot (as per banks), very likely to be 80+5%. Max tenure: 30~35 (40 if you are degree holder)

MRTA (mof 90%, tenure 30): Est 4.9k
MRTA (mof 80%, tenure 30): Est 4.3k

Call me up if you need help on this. Have a good day.



This post has been edited by home_save: Dec 20 2010, 12:33 AM

hi home_save,

i just booked a house & now looking around for the best housing loan...

details :
1) apartment at Nilai (Near USIM)
2) RM158,000 (just soft launch, not yet start any construction)

requirement:
1) MOF: 90%
2. I'm 30 years old, how much should i pay for the MRTA?
3. Tenor: 30 or 35 years

Dear Kaizen18,

You can expect 80~90% of mof, depending who is the developer of your property, location and property type. Tenure can be 30~35 yrs based on your current age.

MRTA (90% mof): est 5k
MRTA (80% mof): est 4.4k



This post has been edited by home_save: Dec 20 2010, 12:34 AM

[attachmentid=1799470]

Announcement removed

This post has been edited by home_save: Dec 20 2010, 12:34 AM

Hi Chris,

Thank you for the reply. The unit I'm buying is for stay and it's under construction. The Bank B in my list is from Affin bank and it's giving me the best offer. I am not planning to take for 45 years as the interest in that is way too much. 35 years max. The thing is, although it's for stay but I'm planning to buy a bigger property in the next 5-7 years because I'm planning to have a family and by that time maybe 2 kids pop out and need more space. I'm currently waiting for 2 banks Ambank & RHB Bank for my loan request to be process.

Thanks,
r47z

Dear Audy,

An inquiry. Do you bought a completed property or an under-con property? I suppose your bought under-con property. This is a statement of the loan that being released to your seller/developer/legal firm for the funding of property purchase (Title: "Progressive drawdown advice" means that the loan is disbursed to your payee in a progressive manner rather than 1 lump sum payment). The payment which released is paid to your seller/ for MRTA/ for legal fee,the "facility limit" that mentioned there is the balance of your loan which haven't released to the payee, and your interest is calculated based on the loan amount. If you are buying an under-con property, and based on the statement itself, it seemed like you are servicing the interest only during the under-con period without knocking off the principal.

Please let me know more about your scenario as all the briefing here is based on my own assumption without any B&W supporting after seeking the clarification from the staffs. Hope it helps.

---

Added on September 25, 2010, 1:42 pmHi r47z,

No problem. Since your Affin Bank calculates the lockdown period start from full drawdown, you might need to take this into consideration as well as the whole effective lock-in period might ranged from 7~8 yrs (include construction period), you might be in a disadvantage if you plan to sell it off or refinancing.

Tenure is not really a big deal as I always advice my clients to go for a longer tenure package with no restriction on maximum prepayment. With this, you can have a lower minimum monthly installment and you have an option to pay higher installment and shorter the tenure by yourself while offering the flexibility in managing your monthly commitment during an emergency. Moreover, a lower minimum commitment in your CCRIS can help to improve your commitment ratio and boost your position for next home loan. Think twice.

Happy loan hunt. Cheers



This post has been edited by home_save: Dec 20 2010, 12:35 AM

i do not see any such terms in the LO.

One of the condition is Prepayment of TL but it only mentions about fully settlement. Another condition is advance payment redraw facility. Thats about it.

Hi,

the first bank loan officer called me.he said we will save more with the following loan package ;

1-3 year : fixed 4.15
thereafter blr -1.9

What do u think?
Property under construction.expected to be ready by end 2011.
Plan to sell of in 5 years time if possible.

Hi Gal,

lol. Definitely, the guy who sell you the package must promote their own packages rite? If you had made up your mind in selling your property in 5 yrs times, package of bank 1 and the other, BLR-2.25 might serve your purpose. As long as the increment of BLR is not significant for the 1st 5 yrs (float around 6~7%) , both of them are good choices. Since they are quite similar in nature, you can compare them in term of terms & conditions, especially the provisions of prepayment & others as well. Choose the one which best suit your need.


Please take note of the lockdown provisions, especially the term of "1st drawdown" & "full drawdown" as these will affect the effective length of lock-in period. If the package states "full drawdown", since your property is ready by the beginning of 2012, the lock-in will lapse by 2017 (if 5 yrs lock-in, full drawdown), overall, you have to wait 7 yrs from now to avoid the penalty. Well, it is just too long...

Study the LO carefully, if the bankers don't allow you to take it back to your home for "revision". Just make an appointment with them and study the whole things with them in a coffee shop (bring along a dictionary if you need it) when you have the free time. There is no point of crying after you sign it.

Enjoy your loan hunt




This post has been edited by home_save: Dec 20 2010, 12:35 AM

Thanks chris.
yea,that's y I consult here.at least in forum less bias.
Means in my case bank 3 is out of consideration?
Both bank 1 n 2 is lock down 3 years from first draw down.
Just that bank 1 is only 36 years tenure while bank 2 is 40 years.

my current properties fully repayment loan, bank value RM215k. I plan buy another properties about RM500k should i refinance my current to less loan for new properties or new loan instant? which rate cheaper or worth

Dear Alfredfx,

You are getting a conventional loan or flexi loan? You should be aware of this kind of LO for conventional as less terms being specified within the LO will let the banks to have their room in manipulating the prepayment in the future. Call the officer and ask them about these questions for your conventional packages:

(i) What is the expressed instruction must be given out (& "how" as well) for "partial prepayment" to be carried out?
(ii) What is the minimum amount for prepayment? And, what is the max amount for prepayment?
(iii) What kind of prepayment can account to re-drawable prepayment?
(iv) When must the written notice be given out to bank avoid any penalty?
(v) Any charges? How many time can I withdraw per month?

If you get a flexi loan, then you should not worry about these questions as you just need to deposit your money into the Current Account, then interest deduction will be carried out.

---

Added on September 25, 2010, 7:15 pmHi Gal,

No problem.

If the terms and conditions within are similar for both banks, then you should go for bank 2 for the concern that you are going to buy a new house in near future. Point here is that longer tenure will have lower monthly installment, offer commitment flexibility as you can pay additional if you can afford it or pay a minimum amount when you cant afford it. Somehow, when you buy a new house while the old house is still in hand, a lower monthly commitment will help to improve your position in getting a loan. Longer tenure might require you to service more interest but if you can pay more, then it could achieve both flexibility of commitments and shorter tenure while interest payable will reduce as well. If you want to calculate how the extra payment can help you with longer tenure, download the developed mortgage calculator right below my initial. It helps.

---

Added on September 25, 2010, 7:21 pmHi 2mystore,

Correct me if I am wrong about your intention. You have fully settle the loan of current property right? Property with a lower value means smaller size of loan and smaller size of loan means worse rate. If you don't need any emergency money, don't ever try to refinance your house as paying off a mortgage is not an easy business. Since you are getting a new property with RM500k loan, you can get a good rate with this loan size, est around blr -2.3%. For your current property, the best is only blr -2.2%. There is no point in using the money of higher interest rate to pay off a loan with lower interest rate.

Don't do this, dude.




This post has been edited by home_save: Dec 20 2010, 12:36 AM

Chris, I'm not quite sure I fully understand your explaination above. My property is already 6 yrs old and I been making payment since then. I bought when it was new, direct from developer. I previously took fixed home loan at 7.50% and recently decided to refinance with HSBC to reduce the mthly installment. I thot this process should be very straightforward ie. I continue my mthly installment with lower rate...that is what I understand from the Offer Letter, and that is how the salesguy explained to me. This is my first time refinancing mortgage.

The salesguy told me that HSBC will send me a letter to inform of the new mthly installment cos the BLR has changed since my offer letter was approved. Instead I got this "Progressive Drawdown" note. Is HSBC wrong in this case then??

This post has been edited by audy: Sep 25 2010, 08:16 PM