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> Finally Refinancing! :D, Need opinion :)

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TSSyd G
post Jun 26 2008, 01:55 PM, updated 16y ago

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Dear all,

With the current uncertainties of BLR I've decided to move my rental home loan to a fixed interest one ASAP. I'm planning to dispose the house within 5 years (it's an investment property), so I just wanna ask around for opinions smile.gif

Current market price : RM115000

Current Mortgage :

Balance : RM68000+
Time served : 2 years smile.gif
Interest Rate (tiered) : BLR - 1.00 (Year 2 - Year 4), BLR (Year 5 - Year 10), BLR + 0.20 (Year 11 onwards)
Lock-in Period & Penalty : 5 years, 2.5%

Offered Mortgage :
Loan Amount : 90% (RM103000)
Interest Rate : BLR - 1.35
Financier : Same as above, no penalty cause its considered as 'redraw/remortgage'. MRTA topup free whistling.gif

Currently Looking at :
Financier : PBBank
Loan Amount : 90% ZEC (if can get)
Interest Rate : 5.40% p.a. for first 5 years
Lock-in Period & Penalty : dono years, 3%

Any other suggestions? blush.gif
johnsonm
post Jun 26 2008, 03:01 PM

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if you are worried about blr increasing, then shouldnt you be re-financing to a fixed rate package, i.e where the interest is fixed at 5% or 6% for the 1st 3 years, 5 years or entire duration?

not too sure if PBB is still offering this package. last time i checked, they had 1 where the interest was fixed at 5.1% for the 1st 5 years. this will be ideal for you.

if they don't offer fixed rates anymore, then AIA or ING will be your only options.
Pai
post Jun 26 2008, 03:50 PM

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GO for the PBB mate. Hedge yourslef against real risk of rising rates over the next 5 years,
TSSyd G
post Jun 26 2008, 06:11 PM

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@Pai
Looking out for other offers too. Maybe I'm not aware of other good offers by other institutions smile.gif
robertngo
post Jun 26 2008, 06:48 PM

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i am applying for the PBB 5 year fixed loan also, the lock in period is 5 year. cannot find other bank that offer good fixed rate package anymore, been to Aliance, UOB, HSBC, HongLeong, CIMB, Standard Charted.

This post has been edited by robertngo: Jun 26 2008, 06:52 PM
TSSyd G
post Jun 26 2008, 06:49 PM

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Hey does ZEC covers the locked-in penalty? sweat.gif
ed0gawa
post Jun 26 2008, 08:09 PM

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QUOTE(Syd G @ Jun 26 2008, 06:49 PM)
Hey does ZEC covers the locked-in penalty? sweat.gif
*
Nope, pay it own your own ..... smile.gif
cuebiz
post Jun 26 2008, 11:39 PM

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Go for AIA home loan. Fixed 5.7% Non ZEC or 5.8% ZEC

No penalty when home is sold within 5 years for non ZEC package

MRTA or Mortgage Life is compulsory
TSSyd G
post Jun 26 2008, 11:45 PM

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@cuebiz
Any particular reason why I should go for 5.8% ZEC as opposed to 5.40% ZEC with pbbank? AFAIK AIA has a lower MOF.
cuebiz
post Jun 27 2008, 10:04 AM

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QUOTE(Syd G @ Jun 26 2008, 11:45 PM)
@cuebiz
Any particular reason why I should go for 5.8% ZEC as opposed to 5.40% ZEC with pbbank? AFAIK AIA has a lower MOF.
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You mention that you goin to dispose the house within 5 years. There is no penalty rates for AIA if dispose within 5 years. However, there is an admin fees charge ( I think RM200). You have to calculate the penalty rates with PBB and compare with AIA for early settlement process.

MOF is 80% for non landed else 90% for landed
gkl83
post Jun 27 2008, 10:44 AM

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MOF = Margin of Finance? the loan amount that we can take according to house price?
TSSyd G
post Jun 27 2008, 11:02 AM

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@cuebiz
Alright thanks for the suggestion. I'll definitely consider that when making my decision. The lower MOF is a big turnoff though.

@gkl83
Yeap smile.gif

 

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