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

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...

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.

Hi Peeps!

I have most of the popular banks in malaysia under my portfolio so I can help you choose the bank that best suits your needs. If anyone is interested or have any enquiries on housing loan or shop loan you can give me a call @ 012-3871138 (Theresa). Cheers!

If anybody is interested in conventional loan, I have a bank in hand that can offer Yr1-5 less than BLR-1.9, TA less than BLR-2.1.

For more enquiries you can call me @ 012-3871138(Theresa)

Yes. But it will be at NZC.

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Added on March 2, 2009, 12:30 amIt depends on how long it will take for you to clear off your loan. If by using prepayment it takes you >20yrs(rough estimate) to clear off, Std Chart would be better with the rate @ Yr1-Yr5 BLR-1.65%, TA BLR-2%. If <20 years @ 1.85% it would be CIMB for flexi.

Think Ambank came up with some good rates. However i need to check on that. Think they have allot of hidden cost too.

This post has been edited by DriedIce: Mar 2 2009, 12:30 AM

So far I've seen Std Chart seems to be the best. Min loan 45k, flexi loan, BLR-2%

The other bank's best rate is @ BLR-1.45%

Well like i said in my previous post. For full lexi which is MortgageOne, minimum loan amount is 45k @ BLR-2% Non-Zero Cost.

No. I think he was giving an example on full flexi loan. If I am not mistaken, HSBC is also a flexi loan. But then again, some banks do offer only semi- flexi loans.

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Added on March 3, 2009, 11:02 amMy dear, your question is too general. What amount are you looking at? Different amount will have different rate.

This post has been edited by DriedIce: Mar 3 2009, 11:02 AM

Hi Danny,

As per your 1st question, free moving cost is totally free. The only hidden fee is the bank service itself. It could be charges on every transaction or after a number of transaction or something like that.

As for MortgageOne or Flexi Loans, it actually helps you save in interest.

You won't see any difference if you keep paying the the exact amount of monthly installment. You won't even see any difference if you pay additional RM10 on top of your monthly installment (but it does affect it, just not that significant).

The only obvious savings you can see is if your loan is 136k and you pay a huge sum of money like RM50k or more to actually see clearly that you ARE saving. The most obvious experiment is if you have 136k, you dump 136k you will see that no interest is charged.

As for your BLR @ 6.75%, the bank will revise it to the latest. Currently SCB is still at BLR5.95% but they will be announcing the latest BLR soon.

If you are still interested in refinancing, you can give me a call @ 0123871138 and perhaps we can look into a few banks for the best interest rate.

This post has been edited by DriedIce: Mar 4 2009, 01:44 AM

For your info:

All flexi loans have a set up fee of RM200 and maintainance fee of RM10. Banks can call it whatever fees but you have to pay the RM200 and monthly RM10. So this applies to SCB's flexi loan too.

Flexi or conventional? Most banks now don't make MRTA compulsory.

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Added on March 6, 2009, 1:17 amWithdrawal as in? When do you withdraw. After signing letter of offer? After disbursement?

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Added on March 6, 2009, 1:18 amAre you sure? No RM200 charge to open the current acc?

This post has been edited by DriedIce: Mar 6 2009, 01:18 AM

[quote=livingmonolith,Mar 6 2009, 09:24 AM]

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Added on March 6, 2009, 1:18 am

Are you sure? No RM200 charge to open the current acc?

[/quote]

the last time i checked CIMB islamic has a flexi package that doesn't require RM200 start up fee nor RM10 maintenance. and the penalty is 3% from the remaining outstanding loan, not from total loan amount.

[/quote]

Yup. That is only for Islamic. Their flexi package gives you profits as well..

For the withdrawal part, its usually called hidden charges. Some banks have it once you've done past 5 transactions in a month or something like tht. If you are interested you can give me a call @ 012-3871138 and i'll come up with all the legal cost and monthly installment for you.

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Added on March 7, 2009, 6:06 pmFD's or other source of income would help. Normally the bank would prefer you to open an FD with them.

This post has been edited by DriedIce: Mar 7 2009, 06:06 PM

For FD would be about half your loan size or less. Did a case before they requested half the loan size for as the person was still under probation and the 2nd applicant was too old.

So in your case 1/3 the loan size would be sufficient if you are employed.

Most bankers can't give you the specific as they prefer it if you can give more docs the better for them. No need to go through the hassle of appeal and all that..

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Added on March 10, 2009, 12:27 amNo. Used to be a banker. Now I'm a mortgage broker. I help ppl look for the best loan rate in town instead of them going through the hassle of bank shopping. And you can address me as Theresa.

Thx.

This post has been edited by DriedIce: Mar 10 2009, 12:27 AM

Lol. It's either that comment or they shoot a rate at you then say "subjected to management approval" Bankers line I suggest you start shopping with other banks as well.

4.99% frm AIA is NZMC, for ZC its 5.29% if i'm not mistaken.
ING NZMC= 4.85%, ZC= 5.25%

Refering mainly to just mortgage, the requirements depends on your father's age, whether he is still working or is he a sole proprietor...
The loan period will be either 65 years or 30 years which ever comes 1st.
Interest rates vary from bank to bank. But it should be around BLR-1.75%

If your dad is interested in mortgage he will have to decide what package to choose. Whether to go for Flexi loan of Term Loan or FMC or NFMC.

Whichever bank that is chosen will have to depend on your dad. If mortgage is the way you want to go I can be able to assist but I think it's best to speak to your dad so that I know what he wants.

Check with the loan officer you submitted you case to. Prob havnt been approved yet unless you've already gotten a call.

Depends on how much is your outstanding balance and the value of your property. From there we can see the additional amount of money that can be used for your renovation.