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 Loan Repayment Decision, Seeking advice on loan repayment option

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TSMuliku
post Jul 6 2008, 11:21 AM, updated 16y ago

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Hi am new here,

Just bump into this forum and read some interesting threads on loan types. Want to seek some advice on mortgage repayment options.

Loan amount: $300k with Std Chartered
Type: re-mortgage June 2006 at 3.5% yr 1; 5.75% yr 2; BLR 6.9% now
T&C: min stay of 5yrs before early repayment penalty is waived
Tenure: 20years

1. Have company subsidizing 3% of interest payment which is tax deductable (say at 20% cliplevel)
2. Have been paying about, on average, $900 more every month since June 2006.
3. Have option to withdraw $100k from EPF (was saving for kid educ fund)
4. Have liquid cash say about $100k from other bank accounts

Understood we have a situation here on possible interest rate hike sweat.gif in the near future.
Hence I will need to look for a better option to minimize interest payment but which icon_question.gif ???
All expert advice welcome and much appreciated notworthy.gif
Thanking you in advanced thumbup.gif notworthy.gif


leejengkid
post Jul 8 2008, 01:14 PM

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perhaps you can go to this website and compare different loan packages

www.fiscal-wise.com.my
firesphere
post Jul 8 2008, 04:53 PM

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From: Kota Kemuning / Shah Alam / Subang Jaya / KL
Ask StanChart to revise your rate. Depending the loan amount, from my rough estimation it's about 250k principal left unpaid. So ask for something around BLR-1.8% if not 2.05%. No not to pay anything but just another 3-7 years lock in from the date of revision.

Out there, a lot of bankers will ask you to refinance. Well it's our job and to be frank, if they don't revise the rate for you then refinancing is not a bad option. Normally the minimum reduction of at least 50 basis point (0.50%) is needed before a refinancing case is worthwhile and right now you are paying 6.50% while the market is giving BLR-2.0% (4.75%) for loan amount of 300k.

Btw, is your rate a fixed rate? Right now StanChart's fixed rate is BLR-1% (5.75% still better than 6.50%) with a cap at 9.90%. Just let the officer know that the bankers out there are giving you BLR-2.0% with cost absorb (only loan legal, no penalty absorb) if you refinance to their bank.
TSMuliku
post Jul 23 2008, 08:41 AM

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QUOTE(firesphere @ Jul 8 2008, 04:53 PM)
Ask StanChart to revise your rate. Depending the loan amount, from my rough estimation it's about 250k principal left unpaid. So ask for something around BLR-1.8% if not 2.05%. No not to pay anything but just another 3-7 years lock in from the date of revision.

Out there, a lot of bankers will ask you to refinance. Well it's our job and to be frank, if they don't revise the rate for you then refinancing is not a bad option. Normally the minimum reduction of at least 50 basis point (0.50%) is needed before a refinancing case is worthwhile and right now you are paying 6.50% while the market is giving BLR-2.0% (4.75%) for loan amount of 300k.

Btw, is your rate a fixed rate? Right now StanChart's fixed rate is BLR-1% (5.75% still better than 6.50%) with a cap at 9.90%. Just let the officer know that the bankers out there are giving you BLR-2.0% with cost absorb (only loan legal, no penalty absorb) if you refinance to their bank.
*
Many thanks firesphere,

Here's what I got back from StanChart.

BLR at 5.75% todate

BLR - 1.60% if accepted within 30days (or 5.15%)
BLR - 1.85% if accepted within 7 days (or 4.90%)

with same 3% penalty in case discharged within 5years.

This post has been edited by Muliku: Jul 23 2008, 08:47 AM
wheimeng
post Jul 23 2008, 09:16 AM

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http://biz.thestar.com.my/bizweek/story.as...787&sec=bizweek

maybe it might help you to decide

 

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