Most people fail to realise something. I always advise ppl to stick to big banks. The reason for this is because they have a bigger spread of loans and capital. So if in 10 yrs u wanna refinance, a bigger bank will be able to provide you with a better refinancing package. When u talk about home loans you must always look to the future. Dont just look at the present and be satisfied with the rates. Banks are not stupid. They are there for 1 purpose only and that is to make money.

Most banks if they offer u a good rate there will be other small changes made in your loan document. Always read the fine lines and the small print. Never take things for granted. Always keep a min lock in period. This will give u more flexibility in case of emergency selling. Also do not take any of those free moving costs or include the MRTA. All this is designed to give the banks more money at your expense. Remember that all these additional amount is included in your overall loan amount and will be charged the corresponding interest over the period of the loan. So by giving you a RM10,000 free moving cost package, they are actually making RM 15,000 over the term of the loan.

20% dividends - where does it come from? 

1. Bank Rakyat used to monopolise the Angkasa deductions which commands a pretty high profit from govt servants Personal Loan.  Only now, Bank Rakyat faces competition in this area - that is why 20 years Personal Loan now.

2. Another source is those customers stuck with Fixed Rate financing in the past, they are unaware and still stuck paying.

By virtue of any biz set-up, to continue paying high dividends require high profit - so, Bank Rakyat is still out to make profits.  Just like Banks, dividends is paid-out to shareholders.