Hey guys.

I'm thinking of reducing my Maybank mortgage payment (personal use property). Right now I'm paying via ESI (standing instruction) that will deduct a pre-determined amount from my account every 1st day of the month.

I can also pay more by using the 'Online Bill Payment > Maybank Loan / Hire Purchase'.

Now, I'm assuming that if I transferred money through this method, it will end up at the 'Payment In Advance' balance in my loan account. How do I pay so that it will reduce the principal amount of the loan instead of waiting to be deducted at the end of the month? I'm planning to pay more these days to reduce the interest amount.

If Maybank doesnt allow me to reduce principal balance automatically (e.g I have to write formal letter etc.. zzzzZZzz), am planning to refinance the property with another bank after my locked-in period in 2 year's time. What should I look for when shopping for my next home loan? Maybe I should consider a flexi-loan? Whats the average % of interest difference between flexi-loan an a non-flexi one?

Thanks

Syd G,

A) Do not be PENNY WISE and POUND FOOLISH. Unless, you are paying A few extra K per month, it does not make sense for you to do ESI every month. Sending letter to Maybank and pay the principal once or twice a year is good enough. If you went through the calculation, you will find that the difference is only a few RM. It is NOT worth the trouble.

B) As for refinancing, unless you can get a significantly less interest rate, you are NOT going to save much money either. But, you may still do it because you want the flexibility.

Dreamer

dreamer,

I'm currently paying via ESI to serve the loan (principal + interest), not to reduce principal

I'm 25, the tenure is 30 years and current rate is BLR - 0.75%. Not attractive at all since we were not so educated back then and took ZEC

Here's the answer to your most common questions :

1) I save 40% of salary (10% emergency fund, 30% invest, excluding epf), my fiancee is saving 10% even with this mortgage and its misc expenses

2) We have around 3 months emergency fund

3) Mortgage is fairly affordable since it's a teeny tiny unit - renting would cost approx the same.

A few more questions :

Based on your posts, I have the idea of just closing one eye, pay the amount that's due according to its schedule and invest my extra money elsewhere (ASB maybe?). Do you think it's the right move?

Syd G,

1) If you are BUMI and you can invest on ASB, I would not pay EXTRA to the loan to begin with. The FIRST 200K that I invest will be in ASB. No Unit Trust of ANYTHING else. You are BORROWING at BLR - 0.75% ~ 6%. ASB is paying 7%. So, you gain (7% - 6%) = 1%. Why pay off the loan earlier??

2) How DO YOU KNOW that the extra amount that you pay every month go towards PRINCIPAL?? Do not assume. Ask and check your statement. Some bank do not credit your extra payment to principal. You are just giving them free money at 0% interest.

Dreamer

u do not have to refinance , within lock in period, if u found any better loan package in the market, write a letter to MBB and tell them how new loan will save ur interest $$ even if u break ur lock in period n pay penalty. ask for revision of ur loan package , they may not offer as good as wat u find in the market but definitely better than ur current loan package. I did tht to my hong leong loan, at least u save some time n effort + $ on getting new loan.

for maybank conventional house loan, you can dump an amount to the account and it will use to pay ur installment at the same time it also reduce your interest rate.

That sounds really good . I'll shop around for a better deal on my homeloan to strengthen my case. Thx

Yeah I think I cant do it on monthly basis But it's ok. Based on dreamer's advice. I'll just be paying the scheduled amount and put the extra money on other investments.

Offtopic a bit, here's another decision that I have to make.. I have to pay my study loan at 0%, within 7 years, totalling 63042.13.

I'm planning to pay progressively as we're preparing to get married, settle down and all.. so how much should I allocate a month into paying this loan without losing too much opportunity cost? I'm allowed to propose my own payment plan so here's what I've come up with :

Year 1 - 500/mo
Year 2 - 500/mo
Year 3 - 650/mo
Year 4 - 750/mo
Year 5 - 850/mo
Year 6 - 950/mo
Year 7 - 1050/mo
+42.13

I better earn much more passive income in case I lose my job

Hi there,

I too got a home loan from Maybank. Regarding the extra payment, you definitely can do that and it definitely reduces the interest. I checked the T&C.

I am also repaying via Standing Instruction. However, in order to pay extra, it is "a little more difficult". They only accept the additional payments through their counter. If you pay in via other means, your standing instruction would actually stop deducting for the extra amount that you paid in, which defeats your purpose obviously.

Cheers

I just got my maybank home loan offer letter

Couldnt find the clauses for paying extra repayment to reduce the total of principal loan
Only mentioned that the extra money put in can be withdrawn

Some bank, when u pay extra thru the ATM etc, it won't reduce your principal. Instead it is treat as advance payment (hmm..some bank or was it all bank? Not really sure on this)

has the interest rate increased already?

not yet increased, but strong rumours that BLR will be increased after 25 July

i am also paying via standing instruction. Want to ask, will the extra funds paid via maybank2u to the loan account knock off the principal loan amount ? if not that means it will be sitting there without collecting any interest at all for me ?

UP this.

Will the extra funds paid clear off the Principal Loan Amount (and reduce the interest charges), or it is just merely serving as advance payment for the next installment?

I pay advanced payment via mb2u

It goes to principal loan amount ✌️

A lot of people are confused with the term Principal Offset and Advance Payment. If you made additional payments through M2U online, this is actually advance payment which will also help to reduce the interest rate.
Principal offset is something which you need to personally write in to inform bank that the additional payment made is to reduce Principal.
Note: Any extra money paid to offset principal can no longer be withdrawn in the future should you need the money

damn, ASB paying 7%. wadafish, here non bumi all finding for best rate FD+-4% baru and ASB is right in front of bumi to placed in. lols

Dear Fortezan,
Good afternoon. Thank you for your advice mate. 
With that mentioned, I need more clarity on the reason why that many people say that the Advanced Payment can actually reduce the Principal Loan Amount, and why it is not considered Principal Off-Set?
Please pardon my ignorance on this.

That's because both terms have been used loosely without any regards for it's accuracy.
I too was confused initially until I had a long discussion with a bank manager who heads the home loan department.
For most people who are on semi-flexi and full-flexi home loan, what we want when we have extra money is to park the money in the bank to reduce our monthly interest. This is actually term as advance payment, although it looks like our Principal was also reduced during interest calculation.
The advantage of this is that we can still withdraw the money in case of emergency. However, note that when you perform advance payment online, your ESI (standing instruction) automatically stops, so you need to manually top up every month to maintain the status quo.

Principal off set is something you need to be careful, coz if you tell the bank you want to do principal off set, they will take your money and permanently deduct it from your Principal, and you can no longer withdraw this money.

Dear Fortezan,
Thank you for your kindness and patience in sharing those information with me.
1. I am surprised to know that the ESI (Standing Instruction) stops automatically once I perform the Advance Payment Online. Does this apply for Maybank M2U payment too? How can I re-set back my Standing Instruction, or do I need to notify any Maybank Personnel/Branch Personnel for the resetting back of the ESI?
2. The Advanced Payment that I have made will be 100% used to reduce the Principal Amount, not partial-interest-partial-principal right?

Dear Fortezan,
Sorry to bother you, another question that pops up.
ESI (Standing Instruction) stops automatically after I made the Advanced Payment, it means that for all future Monthly Installment, I have to make the payment of the installment via M2U into the Loan Account myself?
The Mortgage Sales Banker who processed the loan did not explain the mechanism clearly to me.

1. Yes, applicable for M2U. Not sure how to re-set back as I recalled the bank officer telling me the process can be complicated, so now I just manually top up every month. Even if I forgot to top up, it will just take from my advance payment and I can top up later without incurring any late penalty.

2. As far as I know, yes, all Advance Payment will automatically goes towards reducing your monthly loan interest.

Dear Fortezan,

1. The Due Date for the Monthly Installment is the 1st of every month right?

2. Back to the difference between [Advanced Payment] and [Principal Offset], technical speaking, am I correct to say that the only difference is that [Advanced Payment] gives us the flexibility of redrawing the amount paid, while [Principal Offset] does not.
And, both [Advanced Payment] and [Principal Offset] do REDUCE THE PRINCIPAL AMOUNT.

Above statement correct?

This post has been edited by Win Win Inspiration: Apr 26 2017, 04:58 PM

1. Yes, for mine at least, not sure if this applies to everyone.

2. Yes

Wow win win you are digging 8-year old thread to find out more about it. Respect

Hello Mr Faiz,
LOL. I really wanted to get to the bottom of it.

I have to admit, the best way is to call the CS and clear all doubts

I made a call to the CS, the CS directed me to the branch (by giving me a number of phone numbers).

Thank you very much Fortezan.
You are very kind and patient, I am grateful for that.

i am just starting to repay my housing loan at Maybank.

however, i am unable to transfer from my Maybank savings to Maybank loan.
Standing instruction activated and monthly the loan account pulls installment from my savings account.


However, i am not able to transfer additional funds to the loan account.
if i choose "loans" tab, i can see the loan account no. and transaction details.

However in TRANSFER tab,
there is no option to transfer funds from my savings to loan account.
If i select option to transfer to another MB acc., it says cannot proceed, that i only have one account
if i select option transfer to 3rd party MB acc, it still gives me another error.

How do you do it?
thanks.

Friends, are you able to transfer extra amount from your MB savings to your MB loan account via m2u?

which options in m2u do you use?

It's not under Transfer.

It's under Bill Payment. If you're using Maybank app, use the Pay tab.

Payee is Maybank Maxi Home Loan.

This post has been edited by Syd G: May 6 2017, 10:19 PM

Thanks Syd G, I hv found the option, going to try.

Does bill payments hv service charge and limit? How long does it take to reflect as new deposit in the loan account?

From what i was told, advance payment have no charges and no limit as long as ur loan account don't hit Zero balance (fully paid off & account will close). Home loan interest calculated as daily rest so it should take effect immediately.

Same to me.
The CS directed me to the branch which I got the loan.
The branch already closed recently.

Anyone can help me on it?
I feel insecure about my repayment everymonth.

Am I pay the interest ONLY or also pay for some principle?

Below is my transaction as reference.
(I didnot see any deduction on the Principle amount since my house fully completed construction on March 2016.




This post has been edited by Jesse0916: May 7 2017, 05:43 PM

Why not check out this instead. It will show you how much advanced payment that has been made.

Hello bg12,

Good day mate.
In M2U, you go to [Bill Payment], then choose [Maybank] as the payment, the payment type, choose [Maybank Maxi Home Loan].

After that, you will be prompted to key in your Loan Account Number to make the payment.

Note: As per what I have checked with the Banker, if you have Standing Instruction set already, your manual payment thru M2U will cause the Standing Instruction to stop. Please kindly be reminded.

Hello Syd G,

Good morning mate. Trust this message finds you well.
Not being a busybody or what, as I am also having a number of questions with regard to M2U Advance Payment, and, in the image that you have attached, I saw that the Advanced Payment figure is much more higher than the outstanding balance (which is lesser than MYR 100), therefore, upon having the Loan Fully Paid, what will happened to the Advance Payment that you have made? Fully returned to you?

Hello Syd G,

Please pardon me for asking many questions, understanding that the Advanced Payment will reduce the Principal Loan Amount that is used to calculate the interest, but for the case which we want it to fully clear the principal amount (not as Advance Payment, but Principal Clearance), we should be writing to the bank to do that right?

Thank you for your advice in advance.
Have a pleasant and passionate day ahead.

Thank you for your kindness to advise on this Syd G.

Hi Win-win,

As per my discussion with loan dept, excess payment by default is considered as Advanced Payment. It immediately affects daily interest calculation. Effect on principal is only temporary though, as your advance payment will be deducted monthly, your principal goes up again, interest goes up again, unless you manually topup so that prinicipal and thus interest charged remains minimal.
unless you remember to topup installment every month or whenever you wish, manually. For the privilege of withdrawal, this inconvenience can be excused.

To pay as partial settlement, we must inform Maybank (by form/letter). Without doubt, this reduces the principal permanently, however no withdrawal possible.

Hello bg12,

Good morning.
Thank you for your kind sharing of information, you have given me a complete clarity on this.
For partial settlement, is there any threshold set/minimal amount if we wish to do that?

Thanks, i succesfully transferred .

Looks like we can transfer any amount, limit can be set high , and transfer is immediately reflected in the home loan account. No need to wait next working day etc....

Hello bg12,

Nice to hear that mate.

Note that while advance payment can be any amount, redrawal must be in the increment of 1000. Means minimum 1k.

Any redrawal will be charge RM25 correct?

Since the loan amount is much smaller than what it should be, my ESI has stopped so it just floats at that amount or a while. I can choose to either withdraw or just keep it that way or the next 20 years or so (it's a 30 year loan but only small amount) . Currently cashlow is OK so I just keep it there to offset interest.
l
Yea if you noticed, my home loan interest is quite high since it's an old loan and I'm in no position to refinance due to lack of proof of income. I plan to settle the remaining RM85 soon, and that will require me to officially write to the bank to inform that I intend to close the account.

RM25 + GST

Hello Syd G,

Good afternoon. Trust all is well and thank you for your kind response.
To fully settle the loan balance (your RM85 remaining balance for example), we need to write to the bank as well? Without the written communication, the Loan Account will not be closed, even after the loan amount is fully cleared?

this is a very good thread for Maybank home loan

btw, i have made advance payment via M2U to my maxihome loan account and it is stated as "payment in advance". the outstanding balance has been reduced as well. just like to confirm, does this mean my monthly interest will be reduced immediately based on the new outstanding balance? thanks for your time and hope to see this thread grow

Dear turion64,

Good afternoon mate. Yes your monthly interest will be calculated based on the new outstanding balance (the balance after deducting the amount of Advanced Payment you made).
One friendly reminder mate, once you have made Advanced Payment, your Monthly SI will be cancelled automatically, and you have to remember to put in your monthly installment yourself.

Hope above helps.

I make advanced payment for my Maybank Conventional Loan monthly, the standing instruction is not cancelled though.

Got scenario to ask u guys ...let say i have top up my current loan amt from 200k to 400k. This mean i cash out 200k. However i park this 200k in the flexi loan.
Since i donot use this 200k, will that affect dsr...?

Hmm, this is strange. My standing instruction has been cancelled automatically the first time I made the Advanced Payment.
I sought clarification from the bank's mortgage consultant and she mentioned that the Standing Instruction will be stopped as well.

Hi everyone , i am new noob for the house load, btw, i ady digg for few days , but how to manully topup the loan account ? Maybank have activated the loan account for my 1st 2nd hand house... but it dint deduct from my account and i think i want to reduce the interest.. any easy way to go by bank.. or need manually go to atm and using machine...

Hello mate.
Do you have M2U account?

If you have the loan online account, you can make advanced payment into the loan to reduce your interest through M2U online payment.

erm, i got M2u, but find all the wape and tanb but dint got the way to pay..

or can lead me to it? Thanks...


Attached thumbnail(s)

You may wanna check how hibah is calculated on an Islamic loan. The technique I used before was for a conventional one.

is a big different btween con. and islamic? I but anyway.. can make any advance payment via m2u or not 1st, got i digging all the tab but find no way to do that so...

I dont know specifically for your loan. There are a few calculation concepts that I know - Bai’ Bithaman Ajil , Musharakah Mutanaqisah, Murabahah via Tawarruq ... and I have no idea how they work on the hibah part.

You can make extra payment for Maybank Maxi Home Loan via Maybank2u's Bill Payment. Maybank Islamic Loan is not in the list.

thanks for the info... maybe my payroll account is maybank islamic.. my c.crad is islamic Ikhwan.. and loan also giving me islamic..

mean either need to wait it auto depit to the account... and i try go to ATM and pay...

35 years ...

Best way is to contact Maybank directly

Thanks bro... i just now try using maxi home loan method and it's work..

hello guys,

helping to ask on behalf of friend..

my friend she have a Maybank Islamic Home Loan "Commodity Murabahah Home Financing-i" that is still on progressive disbursement and have few questions below,

1.is it able to put in additional funds to offset the interest?
2.if yes, can do it via M2U?
3.does she need to inform maybank that fund is for offset interest?

asked maybank they seem not really sure about the answer..

appreciate your advice. thanks!

Loan description :
http://www.maybank2u.com.my/mbb_info/m2u/p...sonal/LOA-Loans

I have a question on Maybank Conventional Loan smile.gif

Loan amount: 300,000.00
Annual interest rate: 4.35%
Loan period in years: 20
Monthly payment: 1,873.74

From loan amortization schedule, it is shown that with first scheduled payment:

Principal: 786.24
Interest: 1087.50
Total: 1,873.74

If one makes a huge sum payment at one's first instalment, say, 100,000, is it that the subsequent interest payment will be recalculated using 300,000.00 - 100,000.00 - 786.24?

How can one be sure that the interest amount is reduced? Is it like supposed interest for 2nd instalment is 1084.65, then the actual is actually less?

Thank you!

perhaps this helps
http://www.hsbc.com.my/1/2/personal-bankin...-sum-calculator

This is indeed a great illustration! Thank you!!

May i know "Maybank Conventional Loan" is it the same way to select "Maxi Home Loan" to make advance payment?

And may i know how to proceed "Advance Payment Redraw" ?

1)yes

2)once you have money on "advance payment" that line is clickable, click it to redraw the amount with RM2x charge to your loan account

The charge is RM25 + GST 😁

Guys, When I first bought my house in 2013, my maybank loan amount is 350k and monthly installment is 1600
In year 2015 I have put in extra 100k as advance pymt.
Then when they reduce the interest rate back in 2016, my monthly installment went down from 1600 to 1090. I suspect that this amount is derived from my loan amount of only 250k after minus my extra 100k pymt.


I have since withdrew all the 100k out from the maybank loan account in Sept 2017.


Upon hearing the opr hike yesterday, I immediate bank in 100k as advance pyment hoping that my new monthly installment will be lower.


So my question is when maybank calculates my new monthly installment figure, will it be base on 323k or 223k (after minus my extra100k adv pymt) ?

I have a question too! Following the hike in OPR recently, the 'Monthly Instalment Amount' remains unchanged. It doesn't tally with loan amortization schedule...

This post has been edited by Midoriyaki: Feb 4 2018, 08:08 AM

From my understanding, despite the fact that your "Monthly Installment Amount" remains unchanged, the portion that goes to Interest Payment will increase, and the portion that goes to the Principal Payment will decrease.

Please correct me if I am wrong.

call the banker that you deal with. After Sales Service.

Want to ask for MaxiHome loan, how much advance payment i can make ?

I remember there is a limit. My monthly instalment is rm1k and the first payment just start yesterday

Hi All,

I just sold my house and after checking in M2U whether buyer's bank has settle the payment to loan account, i can see a link which I can click "Advance Payment Available for Redraw" and if I proceed with the redraw it will be transferred to my savings account. I called CS and he confirmed that the amount is the excess sales price and I can transfer the money to my Islamic Saving Account with RM25 will be charge for the transaction.

I just want to confirm, if the amount can really be transferred to my savings account?

https://pictr.com/images/2020/02/20/5vW25r.jpg

There is no limit of Advance Payment that you can make.

Guys sorry for reviving an old thread.

I'm currently on Maybank Conventional Loan here and I am aware the difference between Advance Payment and Principal Reduction, can anyone tell me the differences between these two options in Maybank2u?

(A) Under "Loans" tab - press the 3 dots on the upper right of my loan and select "Make Payment"


(B) Under "Pay & Transfer" - under Pay To and select "Maybank Term Loan" and key in my Loan Account No.


I also have an ESI set up, and it seems that my monthly deduction goes into Advance Payment - is that true?


Thanks for enlightening!

Hi guys, can anyone confirm that the advance payment made to a semi-flexi Maybank home loan account will actually reduce interest? I have been making constant extra payment monthly to my account, the loan amount does reduce but the monthly interest charged I do not see much difference.

Hi Bro..just to check is it the redraw of advance payment only can be made through over the counter for Maybank Islamic financing?

Or anyone come across with redraw of advance payment through M2U for Islamic financing?

Have you tried to perform the redraw through M2U Online?
It can be done there, if I am not mistaken.

I tried d but seem like no button to click for redraw of advance payment.

By right, I should be able redraw 5k right based on image attached?

This post has been edited by Lucky85: Mar 2 2020, 08:37 PM


Attached thumbnail(s)

Hello friend,
Good day to you.

1. Yes, the amount available for redraw in your case is RM5,000.
2. To perform online redraw, please check if you have this taskbar that contains the [Redraw]?

Hi Bro..thank ur information and bank officer already settle this issue for me d..

Hi bro, good evening.
Glad to hear that you have already sorted out this matter.

Wishing you all the best in life, career, health, and finances bro.

Would like to know this as well. Thanks.

Hi all

I hv paid in advance for my asb loan. I plan that money to cover for 12.mths payment where i no need to pay monthly up to 12 months.

But i have a big worried there because when paid the amount and it reduced the total outstanding.

I hv sign for SI with the bank. Do bank still deduct from my account to pay the monthly installment? Or if it auto stop, did i need to top up myself? If yes, can i redraw the money?

Hello friend,

I am no expert in terms of mortgage loan repayment, however I will do best to share all that I know of.
1. Any amount that you are paying in advance, it will reduce the total outstanding (the principal).
2. On a monthly basis, the bank will still deduct the [interest charged] from your Advanced Payment, if, you do not make the monthly installment payment.
3. The [interest charged] will be based on the total outstanding amount, that said, any advanced payment you made helps to reduce the monthly interest charged.
4. Yes you may redraw the Advanced Payment should you need it, just that it comes with a withdrawal fees.

Hope above helps.

Guys I have a problem with my mortgage account. The above is email to a banker for query. But also sharing to get some help here.
I noticed since July 2017 till now 4 yrs d the mortgage only decrease 10k. Every month paid 1k 4 yrs should be at least 50k? Anything wrong w the account?

Your repayment amount is too small. Your interest is higher than your repayment amount. The bank needs to recalibrate your amount. You loan should be at least RM 1800 - RM 2000 depending on your interest rate.

Based on the balance shown, I think is monthly progressive interest for an uncompleted property.

360,000 x 3.5 ÷ 100 ÷ 365 x 30 = 1,035.

What's your original loan amount, interest rate and loan repayment period?

This post has been edited by Syd G: Jul 3 2021, 10:38 AM

A update on this ? Would like to know also why as my loan amount is also increasing every month. Monthly interest is higher than installment. Balance amount is 328k , monthly 1090 and interest charged is 1200. Made advance pymt before 100k, maybe need to call bank to recalibrate back the monthly payment now which will be higher ?