Here is some news from me who work in Public Bank:

Currently all packages published by bank are non zero cost. Please check the rate here:

Housing loan > 100K: BLR - 1.8%
Housing loan < 100k: BLR - 1.6%

Shop loan > 100K: BLR -1.40%
Shop loan < 100k: BLR -0.95%

FD/OD : Fixed deposit rate + 1%

vacant land : BLR - 0.5%

Property purchased from developer: BLR - 2.0% to BLR -2.3% and subject to zero cost ( valid until 31/12/09 )

Besides interest rate, housing buyers may also consider the following features:
1) Loan amount up to 100% ( able to finance legal fee & MRTA )
2) Loan tenure up to 40years residential / 20years commercial
3) Bank waive valuation fee ( Property value up to 1mil )
4) 10% discount on first year fire insurance
5) Free 1year personal accident insurance

Please do check about the rate we can offer to you.

Other banks offering BLR - 1.8% ( 5.55-1.8 = 3.75% )
Eon Bank offer FDR + 1.25% ( 2.5+1.25= 3.75% )

Hence, the effective rate is still the same.

FD rate on year 1997 was 9.33%

EON bank put FDR + 1.25% as FDR is the cost of fund. 0.1% bad debt. 0.2% admin & wages cost. Profit of margin is about 0.95%.
Hence, the Profit is guaranteed for the bank is FD rate turn into 0%.

However, BLR - 1.8% does not guarantee the profit at 0.95%. Bank might facing lower profit if BLR go too low.

As conclusion, EON Bank is smart.

Just 274K got BLR-2.4% is the best rate of market. Pls check for other Term & condition to avoid suffer later.

Case to case basic.

Hi Ah_Keng, I am public bank mortgage sales banker. I am serving the developer at Johor Bahru & Permas Jaya.

The developer is our panel. About your enquiries:

1) Yes
2) Yes
3) Optional
4) BLR-2%
5) 5years 3%
6) Yes

Please submit your loan application on this week to get Free Legal & stamp duty. Thank you

Document we requested from you:

1) IC & working permit ( if working in Singapore )
2) 3mths payslip
3) saving account / Fixed deposit receipt
4) IR8A form, Notice of Assessment
5) Booking receipt

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Added on December 16, 2009, 6:35 amYesterday PBB come out a internal memo:

1) Subsale & refinancing strictly Non-Zero Cost & BLR-1.8%

For someone i talked to you about your refinancing can get Zero cost, I appologize to you that i cant get Zero cost for you anymore.

2) Purchase from developer previous rate( BLR-2.0~2.3% ) & Zero cost package still applicable if approved before 31st DEC 2009.

The loan taking a week to be approved. Please submit your document if you already booking the house for loan approval first. You can accept after 31st Dec 2009.

This post has been edited by Bon Lee: Dec 16 2009, 06:35 AM

Mortgage Level Term Assurance

Our bank may reject under 5 common senarios:-
1) income not substancial
2) Other loan's repayment not conducted promptly
3) suspect fraud document
4) Non-target property, which is either market value depreciated or geographicaly unfavourable
5) Individual under summon or proclamation of sales

If u need a mortgage amortizing software, i will send to your email.

If ur loan is RM100K, 30yrs, 3.75%, instalment RM600.

U pay additional RM50/mth.

Now Ur loan become RM100K, 26yrs, 3.75%, instalment RM650.

Ur loan been shorten tenure.

Regards the principal deduction, it is automatically.

Now ALL banks ( MBB,CIMB,PBB,RHB,HLB,Ambank,EON,Affinbank,Alliancebank,StandChart,UOB,OCBC,HSBC,Citibank) are the same.

In fact, the bank's rate "standardization" at BLR-1.8% is the "gentleman's agreement" among all local banks and some foreign banks.

This rule imposed by Bank negara is just banker's rhetoric, which means bankers use Bank negara's name to tell customer and make it more persuasive.

All banks previously faced the profit margin droping drastically when compete on market share, where slash interest rate to attract the customer.

However, when one of the foreign bank slash until BLR-2.5% once all the bank raise out this meeting to discuss on mutual matters due to several foreign bank reaching the bottom line of cost of fund. For example, UOB's cost of fund is around 2.8% because their fund mainly based on their priority customer and they offering them above 2.5% FD rate. Adding provision of bad debt loan, 0.1% and staff overhead 0.2% become around 2.8%. Hence, they are unable to compete on BLR-2.5%( 5.55-2.5=3.05% ). Somemore paying legal fee 1.25%+stamp duty 1%+valuation fee RM500-RM2000, if only lock in for 5years, they are totally got no profit at all.

Some banks ever raise their lock in period to 7years and compulsory MRTA, ( profit from MRTA is 10% of premium) but it is just a small glass of water against the roaring fire. Nobody know whether one day got an insane offering BLR-BLR. Finally resulting at this meeting to standardize the interest rate at BLR-1.8%-1.9% and withdraw free legal documentation fee.

If one bank got some "promotion", they got no wrong. This is market competition. But back to the human relation principle, most of the customers more likely to chose the bank they are familiar with & better customer service rather than cheaper rate but lousy service.

Above are my opinion is share with everyone. And I would like to say that: new bankers only know how to sell lower interest rate, but good bankers sell good rate & service.

Advance payment is extra payment that u going to pay for next month's instalment but not principal amount.

Prepayment is extra payment that u pay for the principal, after that the outstanding will be just calculated for interest rate.
For example, if u made RM5000 extra, loan amount is RM100000, the outstading become RM95000 x 3.75% x 30/365 for your next month interest charged.
If u wish to pay for prepayment, next month u still need to pay instalment. However, if u not making any payment, bank will take your prepayment to pay the instalment. Hence , there is not default.

Term loan is normal conventional loan that previously our parent pay for. "Term" means every month pay for a fixed amount. If u wish to pay extra, u need to give notice to the bank. If u not giving any notice, all the payment is considered as advance payment.

Flexi loan is innovative loan that firstly created by Citibank on 2004 brought from the concept of their USA market and following by StandardChart named Mortgage One. The feature of loan is allowed u to pay prepayment any amount, any time, without giving notice & no charged for that. Additional features like the interest calculated on daily rests, and also giving u flexibility on withdrawing prepayment with cheque book or ATM card.

Nowadays all banks have copied this concept and offer similar type of flexi loan to their customer. The difference is very minimal.

Hence, you are recommend to apply flexi loan to save more money. The saving is just exactly as your friend giving you the example.
Outside market got private company offer the consultancy about this concept to educate people to save more money. But if u get a loan from a good experienced banker, he/she will help you for free.

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Added on February 14, 2010, 3:45 amI totally agree with you that interest rate is the key. If i apply housing loan, the most important thing i compare with must be the interest rate. I will not pay for higher interest because of the banker very charming or he/she frequently visit my house to discuss about loan.

I also will compare loan's feature that got monetary value, like absorb legal fee, lock in period, late charges, special term & condition that regards charges. If everything the same, i will consider for the bank's " after-sale value".

I know that signing for loan is not just one moment, but is a 30years matter. During this 30years, i may need some after-sale services.

From signing to loan drawdown is already one thing, some bankers will neglect to follow up for loan drawdown causing u to pay penalty for late drawdown to vendor or developer. Only that moment u found out u paying more penalty than the interest u save.

Every month i got to go to the bank to pay instalment, so that i will chose a nearer bank to help me save the travelling cost or parking fee.

For employee, we got our EPF that allow to pay for housing loan. Hence, i will judge with my eyes that whether the bank got front liner that help me on this matter. Besides, postal may delay or missing. I may need to request for statement to check for my outstanding. If the bank's e-banking system allow me to check at home is much better.

I also came across one case that a customer who heavily travelling to oversea. Once during his outstation, we found out that his saving account that not sufficient to pay for the instalment,but his current account is sufficient. We are unable to reach him for making request to deduct from his CA, but the letter offer do stated that we are allow to do so. So we temporarily deduct from his CA to avoid his late charged. After 2months he come back, we inform him about this. He told me that he is so forgetful that forget to pay the instalment but our bank got this priority on customer. In fact we can earn his late charged but we dont, we want to earn customer satisfaction.

Another senario is about MRTA. One customer who got a 20years loan but he settle it by 5th year. His MRTA cover for 20years. During the settlement we help him to issue letter to insurance company to claim back the refund. When he got his refund cheque, he come to our bank said thanks. He said previously his loan refinance from "M"bank to our bank, at "M"bank he got brought MRTA, but after he refinance then "M"banker ask him to claim refund himself but he even dont know which insurance company and what is the procedure. Hence, he let his 30years MRTA premium forfeited. He said he making a right choice to refinance to our bank and will introduce his friend apply loan with us as well.

As conclusion, I know that i am working in serving line but not pasar hawker that throwing discount or " touch and go". I feel satisfied that i can fulfilled the customer's dream house by offering them housing loan. Everytime during Chinese New Year i got received a lot of greeting cards from my customer then i know how many customers satisfy my service for them. That is what called work satisfation.

This post has been edited by Bon Lee: Feb 14 2010, 03:57 AM

Yes. In fact MRTA and Mortgage Level Term Assurance (MLTA) is transferrable under 2 conditions:
1) New bank have to accept old bank's insurance company which maybe non-panel insurer. For example, Citibank's panel is ING if want to transfer to Hong Leong Bank, whose panel is Hong Leong Assurance, can be done if HLB accept this deviation.
2) New bank's loan amount and tenure should be remained to old bank's last balance & remaining tenure. If increased loan amount or tenure, customer should be awared that is under-covered or willing to top-up some premium.

Procedure is getting the insurance company's assignment form to change beneficial bank from old bank to new bank with RM10 stamp duty. Both bank's officer in charged must aware and accept this matter.

If assignment is passing to insurance company before loan drawdown, no grace period incured and policy immediately valid.

Hi,

Is that the developer insolvent? If yes, he only can refinance after the project took over by another developer.
If developer still operating, he can refinance subject to particular bank's discretion. Due to project delay, property's condition may not favourable. Bank officer will conduct site inspection on this project then just got final result.

However, he is strongly recommended to not refinance as:
1) he need to pay early settlement fee for old bank.
2) he need to pay legal fee & stamp duty incured. Previously developer might got promotion free for all these cost, but now he need to pay himself for second time transfer.
3) Service apartment normally under master title, he will take 6-9months to complete whole refinancing process. ( Loan approve->signing loan document -> letter consent to developer -> discharge deed of assignment -> consent of land office -> charge deed of assignment to new bank -> present all updated security -> advise to bank -> loan drawdown )
4) Due to project delayed, some banks already blacklisted all properties from this project. He has only limited choice of banks.

Hence, resulting as time consuming, wasting money and very hesitating( loan need to apply & resubmit document again).

This post has been edited by Bon Lee: Feb 24 2010, 08:34 AM

If you buy MRTA cover for 5years, you are under-covered. Please get a yearly sum assured table from your mortgage banker. The optimise way is cover under the tenure you planning to pay off the loan. For example, the loan tenure is 30years, but u plan to settle within 20years, then MRTA just cover for 20years.

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Added on February 28, 2010, 1:53 amIn Public bank, fixed rate loan got semiflexi facility only, which is can pay extra to deduct principal but withdraw need RM50 service charge. Monthly dont have RM10 maintainance fee.

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Added on February 28, 2010, 1:55 amThank you. If i got develop my career to KL, please refer me some mortgage customers. Nice to meet you here.

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Added on February 28, 2010, 2:22 amThank you. I am from Public bank.

Public bank different with other banks. Your loan can be approved at local branch instead of submit to head office.

If you willing to let me handle your loan, u have to submit your documents to following address:
Public Bank Johor Regional Office
Level 14, Public Bank Tower, 19, Jalan Wong Ah Fook,
80000 Johor Bahru.

I will put your loan to your nearest PBB branch as your mortgage based branch.

I will able to come up to KL to handle your loan application if only got certain loan size for me to get my manager approve my mileage claim from JB to KL. Hope forumers understand and be fair to me.

I also can introduce my colleagues to anyone who interested to apply loan at public bank so you also can submit your document to them and they will process for you. At the same time, i also will help to follow up your loan with my colleagues.

At last, thank you for those forumers from lowyat net who ever apply loan or introduce customer to me.

This post has been edited by Bon Lee: Feb 28 2010, 02:22 AM

This is quite technical. As you mentioned, your legal fee is rm4.5k. I guess your loan amount is RM200k and loan tenure is 30years.

In fact, BLR-1.9% ZEC better than BLR-2.1% non-ZEC.

Firstly, 0.2% difference equipvalent ~RM30 on monthly interest. If lock in period 5yrs, 12x30x5=RM1800, which is lesser than RM4.5k legal fee.
After lock in period, you always can revise your rate internally or refinance to another bank.

Secondly, 62% of customers will settle their loan within 10years. If you plan to earn back 10.8k interest saving along 30years end up paying more interest to bank, it is not worthy.

Thirdly, net present value(NPV) for 10.8k along 30years is only left 3.3k ( refer to buku sifir, assume inflation rate at 4% ) but if you chose for free legal fee, you save 4.5K immediately. Saving up front mostly better than saving by term.

I cannot comment for those matters with probability, since those thing may or may not. I only based on my knowledge to give these fair comments.

Malaysian who working in singapore need the following documents:-
1) IC & working permit/ PR
2) 3months payslip
3) salary statement
4) IR8A form
5) Notice of assessment
6) malaysia or singapore saving account

Standard margin is 90%. Please feel free to contact me. I am working at Public bank tower in front of City Square.

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Added on March 4, 2010, 2:42 amI am from Public bank. We cannot offer zero entry cost for you, but HSBC maybe can.

However, we can offer loan period up to 35years for you. 90%~95% margin also is not a problem.

About the interest rate, we try to offer lower interest rate to let you save back the legal fee you paid.

So overrall you get a better package versus our competitor.

This post has been edited by Bon Lee: Mar 4 2010, 02:42 AM

Your internet banking maybe only able to check saving account balance. However, you can inform your loan based branch to modified the internet banking to able to check housing loan balance as well.

After this, you will be able to transfer your money in saving account to pay housing loan principal.

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Added on March 4, 2010, 7:58 pmCredit officer will check with your cousin the rational reason that he stand as guarantor. Normally like whether he staying together so he will pay portion of instalment. But if credit officer feel uncomfortable on the reason, he can reject your application.

But if he is one of the owner, ie joint name on sales & purchase agreement, then he definitely can be join together on the loan.

This post has been edited by Bon Lee: Mar 4 2010, 08:01 PM

Public bank will rebounce this month as our management target to achieve 16% growth on mortgage and commercial loan. Starting from this month you may get the best loan package you cant ever find in the market.

The best package i recommend is our Homeplan 6. The interest rate is first 3years fixed 3.75% & thereafter BLR-1.8%. The lock in period is only 3years. Hence, you can be no doubt on the BLR boosting up this 3years. News are expecting that BLR going to increase as precrisis rate 6.5%-6.75%. After 3years, you can revise the rate or refinance proportionally to the market offer.

Secondly, for shop house's investor, we got good news for you. We come out our new package, Shopsave, which got a linked current accout to your shop loan. The interest will calculated as the outstanding of shop loan balance minus the current account balance. You can used it as your Overdraft but the interest rate is lower than OD, ie BLR-1.4%. Interest is calculated daily, maintainance fee RM10/mth and account set up fee is RM200.

Lastly, we got an Ace card. If you got the offer from any bank which offer zero cost & BLR-2~2,1%, we can counter offer with zero cost and even lower interest rate than them! Please ready to submit your loan application to us and find out the best rate in the town.

Thanks Omels, as help me to recommend Public bank package.

I will negotiate toughly for your best rate. Wait for my good news.

[

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Added on March 15, 2010, 10:35 pmMin loan amount is RM100k. This is a semi-flexi loan, where term & condition in letter offer will state extra payment will directly minus principal, if you wish to withdraw required 2days notice & RM50 charges. Loan linked to a saving account, no RM10 maintainance fee and no RM200 set up fee.

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Added on March 15, 2010, 10:45 pmHi, Roy. I will go to KL during 22nd-23rd this month. Hope to meet you and refer me your mortgage customers for Public bank's new package. Thank you.

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Added on March 15, 2010, 10:49 pmHi, bkfeng89. I will go to KL during 22nd-23rd this month. If you free please arrange an appointment to discuss on latest Public bank package. Thank you.

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Added on March 15, 2010, 10:53 pmHi, onnying88. I will go to KL 22nd-23rd this month. See whether you got time to meet up and refer me your mortgage customers. Thank you.

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Added on March 15, 2010, 10:56 pmHi, Terel. I will go to KL 22nd-23rd this month. If you are convienience then we can meet up and apply for your customer latest Public bank package. Thank you.

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Added on March 15, 2010, 11:04 pmHi, Gavin. I will go to KL during 22nd-23rd this month. If you free please give me a call on 0127110057 to meet up and check for Public bank latest package. Thank you.

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Added on March 15, 2010, 11:11 pm[quote=QQstore88,Feb 28 2010, 08:43 AM]
not advisable.

Hi, Daniel. I will go to KL during 22nd-23rd this month. If you are also from KL, hope to get in touch with you there. Thank you.

This post has been edited by Bon Lee: Mar 15 2010, 11:11 PM