actually I know what and why, but I disagree with the kind of setup. Business wise, it is BEST to have one account for one purpose, with clear purpose at the very beginning. Combining your business risk into your suppose-to-be a safe habour is basically exposing your personal asset into business risk. which is why quite a few 'successful' business men get into problem eventually. real story here

the fact that bank gives a better loan rate to flexi loan and not traditional loan tells that they love to see you gets into trouble eventually.

Which bank give better loan rate to flexi loan then traditional loan? I wonder.
From what i know is flexi loan normally 0.2% higher then traditional loan in the market.

The story in the article, is nothing to do with flexi loan. They commited suicide because they losing their fortune from investment. They not die for using flexi loan.
Business risk is mainly come from our judgement when running the business and business model itself. Does any one will take the bank as their main business risk? I believe there's no any company or shop that are not using bank to keep their money nowaday. Simply because the bank is still the best and safe place to put in our cash money. Even it's in our pocket, i feel not safe too. Any company owner or shop owner like to keep all their money in company or shop or pocket?

Using flexi loan is not investment. It just a service that bank offer to us. We wouldn't earn anythings from it. We only save somethings from it.

I hope you are right that traditional loan rate is lower, coz std chart, hsbc so far want to quote me higher on term loan forcing me to take their flexi loan.

some of us have the right approach and thinking when it comes to business.. i.e. safe harbor between personal asset and business risk, diversify your investment.. etc.. but then we still keep reading news of people falling into scams, owe ah long money cannot pay then kena harass.. people should know better, but then sometimes either people forget, or forced out of desperation.. and like the articles show.. act out of mindless irrational greed..

i don't condemn banks or the type of packages they sell.. but then.. everyone should never bite of more than they can chew.. somethings are like a knife.. used properly it will help you.. used wrongly.. it can hurt or killl you..

@onnying88 - correct me if i'm wrong but i thought that semi-term loan and flexi loan do daily rest calculation of your interest, so your interest is dependent on the amount owed to the bank at the time of calculation am i right? which means if i borrow RM200k from bank.. lets say monthly installment is RM1200/month.. but assume i pay RM1500/month and never take out any money at all.. my loan period will shorten right.. so the loan shorten loan period is still the reduced by the same amount no matter if i take term/semi-term/flexi loan right?

---

Added on May 21, 2009, 6:01 pmi never managed to compare flexi and term from a single bank... don't ever recall any banks i contacted offer both.. fyi, i shopped around with SCB, HLB, PBB, Alliance, and OCBC

but what i was offered - SCB flexi higher (BLR-2.1) than PBB semi-term (BLR-2.2) for ZEC package.



This post has been edited by kayx: May 21 2009, 06:01 PM

that was my point, with flexi, you are tempted to chew bigger than you can, chances to fail is higher.

comparing loan rate btw diff bank has no implication on flexi vs term loan.

actually term loan can have the SAME effect as the flex, the only extra thing to do is that you should contact the bank prior to bank in the extra money - which is one extra step. The con is troublesome, the Pro however, is you can specify any instruction when making such official request - be it reduce principal or clear up the interest.

but the flexi is already built in and you cann't request any different calculation method.

This is why seldom people go to full flexi's bank to take term loan. Both SC and HSBC straight away give you flexi loan once you apply loan from them. They are few banks that encourage people to use flexi loan. So if you asking for term loan, they might not interested to deal with you also.

I think ya I have just learned about that too, but all is not lost. Both banks are still reviewing my appeal, I still hope they can come back to me with term loan and lower rate

I still not understand what's the relationship between business and flexi loan you tring to say here.
The example i show above is never link to any business account or whatever. It just assume that you put your monthly income which is RM5k and use up RM5k the end of every month. You put NO EXTRA MONEY inside the account or bank at the end of the month. I don't see anythings wrong or harmful or different to personal or our business. You just earn money and spend money as usual.

Yes, both semi flexi or flexi are usually using daily rest to calculate interest nowaday,unless stated in your Loan Agreement. In your example, YES, both package also shorten your tenure in the same time as long the interest rate is same. Because you paying the SAME EXTRA MONEY also. But what's i'm trying to show in my previous example, by using flexi loan, you can shorten your tenure even more by paying NO EXTRA MONEY to the loan.

---

Added on May 21, 2009, 6:50 pmHow can we fail by using flexi loan? we are not investing our money in flexi to earn money, we just put our money that we usually put in bank, This time will be the same bank that we apply the loan, to save money in term of interest.

Yes, i agree that all the loan is the same, we borrow money and pay interest for it. That's what a loan is.

The con is not only troublesome. Did you count in the money you spend to make 2 trip to the bank to make the extra payment? One for summit the letter to inform the bank and second trip after approved to dump money, you need to go to bank and transfer the money. Parking? fuel? time?
I recall in the earlier post, some one get an offer from RHB bank term loan that even require us to pay 2% for the extra payment you make.

Reduce principal or clear up the interest, i dunno what's the different there, what's the different calculation we need in flexi loan?

This post has been edited by onnying88: May 21 2009, 06:55 PM

currently going to buy new house, below is the research that i get:
any comment or recommend?

I've just merged some of the related flexi threads together.
So you guys might want to continue there if we're going to debate about the loan structures and all
http://forum.lowyat.net/topic/555063

helo..

I'm planning to buy a condo. Unit price at 196k. Plan to take 90% loan with 30 yrs.

I have seen some loan packages in www.money3.com.my, currently i would prefer Maybank package which offering:
Year 1: 2.38% fixed
Year 2- End: BLR -2.2%
As stated, the minimum amount > 100k. Anyone has taken the similar pakcage from Maybank?

Else any other suggestions? Appreciate ur inputs.

Thanks.

ok, my apology and let me restart. flexi loan does have more 'flexible' features than normal house loan. But to 'actually' enjoy those benefits, one really need to (1) really understand personal finance and (2) have good self discipline.

But as far as what I can observed for the past 6-7 years, human nature are just born to fail above 2 requirements. Most ended up withdrawing more and depositing so less frequent.

some did enjoy great benefits from the RM 10 monthly fee, but most done ... its just my statistical observation.

First of all, no need to apology la, we just sharing our opinion here only

Yup, i totally agree with you. We need to have (1) and (2) in order to fully utilies Flexi loan and it's function.
It's same apply to credit card, it may be very usefull and save money if we have (1) and (2),

Statistic show that most of the majority doesn't have (1) and (2), and human nature are just born to fail above 2 requirements, But will this continue in future? Human will always learn from failure and improve from it. I believe this is why human is dominating the earth now. That's what i believe, with proper educate and by time, people will have better (1) and (2).

That's what's my job doing now for all my client. I wouldn't simply let my client to take flexi loan if they does not know how it works and what is it. I will always educate my client with banking info and how does mortgage loan working first. From there i can understand my clients needs and propose the best loan package to them. You and i know that flexi loan need to have (1) and (2) to enjoy the benefit,so do my clients. By consulting and educate my clients about (1) and (2),Mostly of my client will take flexi loan in the end, Simply because we know flexi loan does really save interest for us.

good, u do it the positive way, i do it the 'negative' ways, perhaps we can cover all ground that way

That's what i hope too. If the bank give us chance to save money, just use it. Don't let the bank suck our hard earn money.

anyone can help? thanks!!

I believe with this rate, It's normal conventional loan with Non-ZEC package and compulsary to take their MRTA. Maybe you have no choice to choose others insurance like MLTA for your loan.
Well, in term of rate, it's not a bad offer too.

Thanks.. My main objective is to have lesser monthly installment for at least the 1st year. And i see this package suit me well. Yes, there is concern on the MLTA/MRTA. Personally i prefer MLTA.

i want to refinance my home loan ...... which one is better,
do refinance with the same bank or with other bank.???

currently my loan is with cimb & plan to switch to mayban .... is it ok?? both give me same interest rate but mayban give 'no penalty fee'...

get from maybank, then show maybank's offer to cimb and ask them to match. if cimb match, good. else switch.

according to http://www.malpf.com/ best deal is now Affin Bank BLR - 2.3% but there are many other considerations also in house loan.

good luck !