Here are the offer from the bank......
I asked them to do some calculation for me....

Alliance bank - non-zero
1st - 2nd yr = BLR - 2.2%
3rd - above = BLR - 2.0%

HSBC - non-zero
1st yr = BLR - 2.3%
2nd - 5th yr = BLR - 1.8%
6th - above = BLR - 1.95%

OCBC - Zero (free legal fee; term loan with daily rest)
Whole tenure - BLR -1.9%

Here is the scenario....
Loan = RM120,000
Prepayment = RM20,000
Extra Payment/month = RM150
Tenure = 30yr

Alliance bank Calculate for me is....
1st - 2nd yr = BLR - 2.2%
3rd - above = BLR - 2.0%

1st - 2nd year = RM612
3rd - above = RM625
Account setup fee = RM200 (not returnable)
Monthly charge = RM10
Cheque book = RM7.50
Total Interest = RM39,771
Tenure = 181month

HSBC bank Calculate for me is....
1st yr = BLR - 2.3%
2nd - 5th yr = BLR - 1.8%
6th - above = BLR - 1.95%

1st yr = RM604
2nd - 5th yr = RM640
6th & above = RM630
Account setup fee = RM100 (returnable)
Monthly charge = RM10
Cheque book = RM12.50
Interest = RM51,942
Tenure = 16yr 3month


OCBC bank Calculate for me is....
OCBC - Zero (free legal fee; term loan with daily rest)
Whole tenure - BLR -1.9%

Installment = RM633.23
Account setup fee = NO
Monthly charge = NO
Cheque book = NO
Interest= RM40,400 (not accurate, because only every year end bank in RM1，800）
Tenure = 180month


Alliance ：HSBC : OCBC
Interest = RM39,771 : RM51,942 : RM40,400
Alliance 和 HSBC different between RM51,942 - RM39771 = RM12,171

The problem is when HSBC use Alliance offer to do the calculation, they are no big different...


HSBC bank use Alliance offer rate calculate for me is
1st - 2nd yr = BLR - 2.2%
3rd - above = BLR - 2.0%

1st - 2nd year = RM612
3rd - above = RM625
Interest = RM50,549
Different between RM51,942 - RM50,549 = RM1,393 only？

Why the interest is so much different?
HSBC is RM50，549 ， Alliance is RM39，771

Use same scenario
1st - 2nd yr = BLR - 2.2%
3rd - above = BLR - 2.0%
Loan = RM120,000
Prepayment = RM20,000
Extra Payment/month = RM150
30yr

wow... u get a very good rate.....

no one know WHY?

Based on the payment table you provided

It is indeed 30 over k for Alliance and 50k + for HSBC

nowadays even 120k loan can get -2.2 and -2.0? WOW

Ya, those rates are too good to be true But anyways, that's not what he was asking about.

big differences becoz even a small decimal point can save u alot of money mer.

Im very curious as well. Any sifus can shed some light on this?

Alliance Bank offer is still better base on above rates

Anyway, learn to not look at the rates only. Look at the T&C and the 'charges' incur throughout the loan tenure