It depends on the amount of money release to the developer.

During construction period, borrowers are require to pay progressive interest. These amount of money are serving interest only. No capital reduction here unless you choose to start your installment.

Progressive interest are calculated and charged base on the amount of money release to the developer.

Assuming the bank has release RM 40k, and your interest is at 4%.

You'll have to pay [(RM 40,000 x 4%) / 365 ] x number of days in the month*

or RM 135.89 (assuming that month has 31 days.)

As more and more money is released, you are require to a higher amount of interest till the completion of the construction.



I'll try to run some simulation for you, will update this post probably in a few days time. (do remember to remind me... )

The simulation may help, but it is still speculation only. So bear in mind to use it as reference only.


hope the above helps.

This post has been edited by merce: Mar 24 2009, 11:34 PM