Hi All,

I have a query regarding the "progressive interest" imposed by the Bank. I am getting the loan done for the property that is completing next year (currently at 20% completion).

When I met with the mortgage officer and he have calculated for me how the progressive interest is calculation. However, upon showing the calculation to the developer. The developer is telling me that I don't have to pay soo much for the Progressive Interest charge. Now I'm asking you guys cause I don't know which is correct.

Does the progressive interest charged by the bank is calculated from each drawndown, e.g :

Developer tells me
1st drawdown 10% 50k = interest charged on the 50k with the BLR given/annu
2nd drawdown 10% 50k = interest charged on the 50k with the BLR given/annu
3rd drawndown 10% 50k = interest charged on the 50k with the BLR given/annu
..... until 90% drawndown

Banker tells me
1st drawdown 10% 50k = interest charged on the 50k with the BLR given/annu
2nd drawdown 10% 50k = interest charged on the 1st drawdown 50k+2nd drawdown 50k with the BLR given/annu
3rd drawdown 10% 50k = interest charged on the 1st drawdown 50k+2nd drawdown 50k+50k drawdown with the BLR given/annu

I'm abit confused now cause I'll end up paying close to 10k culmulative for the interest for 90% according to the schedule given with the calculation given by the Banker.

The cost of the condo is about 400k.

Appreciate if you could shed some light on this.

alamak. thanks everyone for the reply.. NOW I know who is right.. gonna burn a hole in my pocket even before the place is completed.