Hi people. I know there is already a sticky of this topic but I was thinking of gathering all the info and compiling it all into 1 so that it is easier to check the rates.

So Lets get started.

CHOOSING THE IDEAL LOAN

There are hundreds of different loan packages out there that offers different rates and different features. Therefore, when choosing a home loan package the 1st question that pops up in your head should not be:

"Which bank offers the lowest interest rate?"

Interest rate should not influence you so much to the extend that you do not consider other factors. The 1st question that you should ask is:

"Which bank can offer me a good loan package under these circumstances?"

Reason why I would advise such is:

1. Service is just as important.
You can choose the best rate in town but if the person serving you is lazy or rude or with an attitude, your loan will most probably get delayed as the staff might have pushed your loan application aside/ When there is something wrong with the loan eg: the loan package that you got is not the one you requested, you can't find or call the person that served you... Actually there's thousand and 1 things that can happen so even if the rates is BLR0.05% better than another bank, I'd rather pay abit for the good service.

2. Are you a risk taker
There are 2 different types of rate that I can think of:

a) Fixed rate
Fixed rate have higher BLR. This is more for those that are risk adverse. Reason is that BLR can fluctuate. Within your 30 years tenure, BLR can shoot up to as high as 12.77% (the highest it went back in 1997).

:: Pros

When interest rates rise, your repayments won’t

:: Cons

If interest rates fall, your repayments won’t
Restrictions on prepayments
No redrawing permitted

b) Variable rate
Variable rate has a lower BLR and this are more for people who are willing to take a bit of risk as nobody can predict what the BLR would be in the coming years. Great example would be the latest decrease in BLR. What was predicted before BLR went down was that it would go up to 7% but instead.. it went down.

:: Pros

When interest rates fall, repayments fall
You enjoy very low interest rates during the initial years
May allow prepayments (subject to conditions)
May have redrawing features (subject to conditions)

:: Cons

When interest rates rise, so do your repayments

3. Xtra charges
Certain banks have hidden cost or extra charge. So remember to ask again and again what charges they have. Eg: Some banks will charge you for every transaction you make. So be xtra careful on that.

Another one would be the "ZERO COST" packages. Do ask the sales staff if all legal fees, stamp duty and valuation fee will be fully absorbed by the bank. Eg: Certain banks will state that it is zero cost however you have to pay 0.5% of the legal fee or it could be free legal documentation but you have to pay for valuation fee.

4. Term Loan or Flexi Loan

a) Term loan
May offer you the best rate but keep in mind that if you want to pay xtra to clear off your principal, you have to inform the bank in advance. Any xtra payment that you make, you cannot request to withdraw it.

b) Flexi Loan
With the current account, you can deposit money in as a payment for our principal which will help you reduce the interest AND you have the option to withdraw the money at anytime. There are certain banks that has add on features that can link your loan to your savings and offers you additional bonus credit to offset your loan.
Note: Usually there is a set up fee of RM200 and maintenance fee of RM10-RM15 depending on the bank. That's another thing that you should check.

These are a few that I can think about at the moment. Any xtra help would be much appreciated.

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Added on December 12, 2008, 11:55 amDOCUMENTATION

General documents to be prepared.

1) Photocopy of IC
2) Land Title/ S&P
3) Latest 3 months salary slip
4) Latest Bank statment that your salary is credited into
5) BE form & tax receipt
6) Any fixed deposit/ addtional savings you have frm other banks
7) Loan statement (for refinancing cases)
8) Borang A & D (for sole proprietor & partneship- self employed)
9) Borang 24 & 49 (for companies- self employed)
10) 6 months current account (for self employed)

These are the documents that are normally required depending on different circumstances. So you can be prepared. Any bankers around that wants to add on?

There is no harm applying with a few banks as the rates shown are Board Rates which can be negotiated. It is all subjected to management approval

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Added on December 12, 2008, 12:00 pmPUBLIC BANK
Public Home Plan

ZERO COST PACKAGE (ZC)

Normal Term Loan Package

Loan Amount :150k - 350k
Interest: BLR-2.0 Whole Tenure

Loan Amount :350k - 500k
Interest: BLR-2.1

Loan Amount :>500k
Interest: BLR-2.2


Full Flexi Package*

Loan Amount :200k - 400k
Interest: BLR-2.0 Whole Tenure

Loan Amount :400k - 500k
Interest: BLR-2.1

Loan Amount >500k
Interest: BLR-2.2

* Take note of this. I have checked with public bank but this is not the rate. For their flexi loan Package, the rate is higher. Any PB banker here please clarify on this. Or is this NON ZERO COST (NZC)?


Public Bank Commercial Plan

Loan Amount :200k - 300k
Interest: BLR-1.5 Whole Tenure

Loan Amount :300k - 400k
Interest: BLR-1.6 Whole Tenure

Loan Amount : > 400k
Interest: BLR-1.7 Whole Tenure

Person to contact: HK Law
H/P number: 0166199989

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Added on December 12, 2008, 12:14 pmCIMB BANK

ZERO COST PACKAGE (ZC)

Flexi Home Loan Package

Loan Amount : < RM300k
Interest:
Under Construction - BLR-1.65% Whole Tenure
Completed - BLR-1.75% Whole Tenure

Loan Amount : >RM300k, <RM500k
Interest:
Under Construction - BLR-1.75% Whole Tenure
Completed - BLR-1.85% Whole Tenure

Loan Amount >500k
Interest:
Under Construction - BLR-1.85% Whole Tenure
Completed - BLR-1.95% Whole Tenure

Additional BLR-0.1% for MRTA

NON ZERO COST PACKAGE (ZC)

Flexi Home Loan Package

Loan Amount : < RM300k
Interest:
Under Construction - BLR-1.85% Whole Tenure
Completed - BLR-1.95% Whole Tenure

Loan Amount : >RM300k, <RM500k
Interest:
Under Construction - BLR-1.95% Whole Tenure
Completed - BLR-2.05% Whole Tenure

Loan Amount >500k
Interest:
Under Construction - BLR-2.05% Whole Tenure
Completed - BLR-2.15% Whole Tenure

Additional BLR-0.1% for MRTA

Person to contact: Can contact me and I'll look for a CIMB banker for you
H/P number: 0123871138

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Added on December 12, 2008, 12:25 pmEON BANK

ZERO COST PACKAGE (ZC)

Loan Amount : > RM200k
Interest:
Completed - BLR-2.2%- 2.3% Whole Tenure

Note:
1. This is not a completely zero cost package. Customer will have to bear 0.5% of the legal fees.
2. I need someone to confirm if it is a flexi package or term loan as I'm getting 2 diff answers frm 2 diff staff.

For those who wants their penalty fees up to 3% absorbed as well:

Interest: 1st 8 years - BLR-1.6%
Thereafter - BLR-2.4%

Lock-in-period = 8 years

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Added on December 12, 2008, 12:40 pmPRICE SOLUTION (subgroup of Std Chartered Bank)

Mortgage One (flexi)

ZERO COST PACKAGE

Under Construction
1st to 5th year: BLR-1.6%
Thereafter: BLR -2.00%

Completed
1st to 5th year: BLR-1.65%
Thereafter: BLR -2.00%

NON ZERO COST PACKAGE (NZC)

Under Construction
BLR-2.00% Whole Tenure

Completed
BLR-2.00% Whole Tenure

Rates are negotiable

Person to contact: Can contact me and I'll look for a PS banker for you
H/P number: 0123871138

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Added on December 12, 2008, 12:47 pmUNITED OVERSEAS BANK

INTELLIGENT HOME LOAN ( i H L )

NON ZERO COST

Under Construction < 40%
1st year: 0%
2nd year onwards: BLR -1.60

Under Construction
1st - 3rd year: BLR -2.00
4rd year onwards: BLR -1.60

ZERO COST

Under Construction or Completed
Whole Tenure: BLR -1.75

MRTA:
MRTA can register 1 person name only although house owner have 2 person...
the loan amount 100% bear on 1 person that registered...

Person to contact: Wayne
H/P number: 012- 517 1210

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Added on December 12, 2008, 1:04 pmHONG LEONG BANK

If I'm not mistaken this is term loan

NON ZERO COST

Under Construction
1st year: 2.38%net
2nd year onwards: BLR 2.88%net
thereafter:-1.30%(with MDTA)

ZERO COST

Under Construction
1st year: 2.88%net
2nd year onwards: 3.88%net
thereafter:-1.30(with MDTA)

Person to contact: JohnChew2002@hotmail.com/ Me!!
H/P number: 012-2498060/ 012-3871138

This post has been edited by DriedIce: Dec 29 2008, 10:30 PM

Standard Chartered Mortgage One

ZEC:
Loan Amount 100 - 200k
BLR- 1.75% (1-5 yrs)
BLR- 2% (Thereafter)

NZEC:
Loan Amount 200-400k
BLR- 2.3% whole tenure

5 yrs Lock In Period

*Better rates for higher loan amount


Thanks,

Tan
0123652902

While I was talking to my client today, an idea just hit me so I'm going to bounce this idea around and see what you guys think.

Assumption:
Loan tenure = 21yrs
Outstanding loan balance = RM120k
Market value for home = RM200k

Monthly loan repayment for a housing loan of RM120k = RM737
Do a refinancing with top up to RM160k (after a few years) = RM983
Investment in Gold @ 2.5%pm for the additional RM40k = RM1,000

Seems like a win win situation. If the investment doesn't go well, customer can put back the additional 40k which will reduce his interest payment and further shorten his loan tenure as the customer will be paying more of his principal. hmmm...

what bout Maybank? DOes anyone knows about Maybank Maxi Home?

bro, you are making a very big assumption here... 2.5%pm compounding for 12 months [ (1.025)^12-1 ] is 34.49% pa of return! That is better than any equity investment at this moment which all delivers negative return. Please consider the volatility...

LOOK:-
mortgage BLR-2%, about 4%+++
credit card 18%+
personal loan.... dunno let say 20%+

Any borrowing cost is cheaper than your assumption of expected return. FYI, risk free rate we normally use Fixed Deposit ( 3% ++ ) or KLIBOR ( 2% ++ ) only.... therefore anything above that is consider risky investment.

1stly, I ain't bro. You can call me sis.
2ndly, the risk is:
- 1. Company closes down you lose 20%-25% of your gold value. Once you sell the gold, you can put the money back into the current account IF you took up the flexi home loan package. With that, the money you put back will offset the principal.
- 2. You lose the gold
3rdly, the gold trade has been mentioned in another thread. As I was saying there, it is not subject to market volatility.
4thly, it does not work on personal loan. I've already calculated it. If you borrow RM10k @ say 12% pa, monthly installment is RM250. Rebate from the gold trading for RM10k is also RM250. So theres no point in doing it. This applies to cc as well.
Lastly, this only applies for refinancing.

This is my opinion after doing some calculations. And considering that the economy is going to be worse, it would help ppl pay off their monthly installments.

What is the conversion of 1k for? is it for something like admin fees?
Are you still tied to UOB?

Hi Danny,
I am interested to refinance my housing loan, could you please provide me more information about the housing loan package and info about your company. TQ

Hi, I am from PS, Standard Chartered Bank..I'm here again to sharing with u all, currently my bank is having a new interest rate on Normal Term Loan for completed property.. that is

ZEC (min loan size 100k)
1st-3rd year: 4.88% fixed
Thereafter: BLR-2.2%

Non ZEC (min loan size 40k)
1st-3rd year: 4.18% fixed
Thereafter: BLR-2.2%



This post has been edited by Errie: Aug 20 2010, 08:42 PM

hi everyone, i just paid booking fee for a condo unit, now scouting for housing loan, if u guys got any special loan package, please PM me, thanks.

purchase price: RM315,000
building status: completed (9 years ago)
location: Brickfields KL
type of use: Residential Condominium
land tenure: Freehold
preferred margin of finance: 90% (RM283,500)
preferred loan package: term loan (without overdraft facilities)
MRTA/MLTA: no

Hi SowYau,


With you currently loan amount I could offer you BLR -1.9% for ZMC & BLR 2.0% for nZMC. If you are not looking for a overdraft facility, i believe semi-flexi conventional loan would suit you better.

Do let me know if you wish to know more about mortgage loans. You may reach me at my mobile or email.

Hope to hear from you soon.


Regards,


Merce Chua
Mortgage Sales Executive
OCBC Bank(M) Berhad
019 - 913 1127
ChuaCChie@OCBC.com

Actually this is something I won't recommend because you can't be sure of the return. Secondly there may even be losses. For important expenses like housing loan, it is not worthwhile to play with risk. If anything goes wrong with this risky investment, the first person the client look for is you. I will only introduce high risk high return investments if the customer has extra cash and doesn't know what to do with it, but for a client who still has to pay for his loans, 1st priority is to reduce cost and expenses.

This post has been edited by DannyOP: Dec 27 2008, 12:46 PM

Hi guyz...i'm looking forward to buy semi d house at at bandar bukit mahkota bangi..price is 240k....my salary after deduction is 2500...therefore i need some advice...what is the best loan package...i need lower monthly installment and is it possible to have 100% loan or at least 95% loan? please advice...pm me if possible...or here also can..i've noticed we have bank staff here...i'm looking for 30 years installment..let me know monthly installment

This post has been edited by sissoko: Dec 27 2008, 09:25 PM

Just estimate yr salary be4 deduction is RM 2.8k
and this house loan around RM 216k (90% margin) monthly installmet around RM RM 1200-1300

qualify for apply loan is 1/3 of your salary or 40% of your salary (some bank can up to 60%), but your situation should be ok for apply... depend on your other commitments eg: car and house.

Loan can get up to 90% only based on BNM rules of financing. If the market value higher than the purchase price u can markup the value eg 265k
(mean u can use the 265k for 90% loan) pls remember the SPA hav to follow the new price.

try to get for local bank loan, foreign bank approver a bit tight.

HONG LEONG BANK

term loan

NON ZERO COST

Under Construction
1st year: 2.38%net
2nd year onwards: BLR 2.88%net
thereafter:-1.30%(with MDTA)still can fight the rate for you...

ZERO COST

Under Construction
1st year: 2.88%net
2nd year onwards: 3.88%net
thereafter:-1.30(with MDTA)still can fight the rate for you..

Person to contact: JohnChew2002@hotmail.com/ Me!!
H/P number: -/ 012-2498060

I wanted to buy a second hand house. The owner is selling the house below market price. Its value is at 240k-250k, as mentioned due to few failed applicant who didnt manage to get the loan for that particular house. The owner was selling at 240k.
(i) Issit possible to mark up the loan?
(ii) What are the docs required to buy a second hand house
(iii) How do we apply to numerous number of bank at one time? Is the application process free of charge?

i) it is not possible to mark up as the banks will do a valuation on the property, however if you purchase below the valuation rate then you can technically get close to 100% loan.
ii & iii) you can apply through us (NyLife) as we are mortgage brokers ie. all local & foreign banks are in our panel. There is no application fee. 1 application goes to all banks at once. Do let me know your email so that I can send you the loan details & checklist. Cheers.

I got quite good package from Standchart.

1-5 years : blr-2%
onwards until completion for 30 years loan : blr-2.15%

TQ.

Wow... what is ur loan amount?? issit zero entry cost?

I would like to know what is the "conversion of 1k" too... is it compulsory?