Can't decide which home loan to choose from:

(a) (From Insurance company) home loan
Package1: 5.45% MRTA (zero cost)
Package1: 5.15% MRTA (non zero cost)

Package2: 5.29% life insurance (zero cost)
Package2: 4.99% life insurance (non zero cost)

(b) (From bank) home loan
BLR -1.5% (No MRTA or life insurance to buy).

Insurance company offer a low rate for peace of mind, but it require me to buy MRTA or life insurance. I'm not sure if this is cheaper in the long run. My friend said stick with bank loan, as the current BLR is 5.95% only, then refinance if BLR goes up after 4 years.

This post has been edited by starbucks_2008: Feb 20 2009, 10:28 AM

Something in regards to housing insurance that you might want to know:
http://forum.lowyat.net/index.php?showtopic=410824&hl=MRTA

Some of the existing loan that is being advertised:
http://forum.lowyat.net/topic/701749

Dear TS,

In general, for short term wise of 5-10 yrs tenure, a floating rate is a good bet.

But if you're looking at anything more than that especially 20-30 years, I'd say Fixed Rate all the way.

Think about it, what can you refinance to if BLR were to go up 4 years from now? What packages would Banks be offering then? Do you think they will offer BLR minus 3-4% Packages? Very unlikely I'd say.

If say BLR were to go down further in 4 years time, then you're free to refinance again to a lower Fixed Rate. Yea, you may have lost out a bit on the 4 years, but the you'll gain much more with the 15-20 years left in your loan, as the BLR will eventually go back up.

Hope that helps you in looking at it from another perspective.

Regards.

I just signed the refinance contract today with HSBC, the interest is BLR-1.85%(4.1%) with zero entry cost. If your house is under construction, u shld get better rates from bank.

can see the full home loan package from

http://mtsen.com/hl.htm

BLR from http://mtsen.com/blr.htm

all best selection is posted on top right corner of http://malaysiaPersonalFinance.blogspot.com

hope these helps

Standard Chartered Bank (current BLR-5.95%)

Conventional Term Loan (ZEC)
1st-3rd
4.88% fixed
Thereafter BLR-2.2%
(min loan size 100k)

Mortgage One (Flexi Home Loan) ZEC
1st-5th
BLR-1.65%
Thereafter
BLR-2.00%
(min loan size 100k)

P/S: for mortgage one package the interest rate is still can be negotiable depend on the loan size and loan tenure. Call me if feel interested. Thank you

Seow Mun
012-278 1125

choose blr - from bank now with no or less than 2 years lock in periods, then may transfer to fix rate loan.