hey all, need your experts help/advice on which bank having the best rate/loan package for buying a completed properties?

I understand that there are few type of loan, some with current account means you can put more money into then it will reduced interest while others are fixed term loan. So what's the different?

The loan with current account will be Flexi loan, you can save alot of interest by just putting in your extra cash flow and will reduce alot in the interest. This flexi loan is the most popular loan type for current market.

The different between normal term loan and flexi loan is that you can put in extra money anytime without any troblesome letter or notice in flexi loan. And also you may withdraw the money anytime without any charges. As the interest will be calculate base on daily basic, If you put in RM100 for 1 week in the current account, you will save RM100 interest for 1week.
You cannot do this in the normal term loan.

Althought normal term loan you may also dump in extra money as u wish, but you will need to notice the bank and tell them clearly that the money is use to reduce principle, this is very important and if you didn't do this, the extra money you put in will be just park at side and use as advance installment for coming month.
Summore if you've already dump in extra money in normal term loan account, when ever you wan to withdraw the money, you need to inform the bank few days earlier and will be charge around rm50 per transaction/withdraw.

The rate between this 2 type of loan is only + - 0.1% to 0.2% only, normal term loan will have slighly better rate compare with flexi loan.

Please take note that even some bank say that their loan is semi flexi, its just a normal term loan that no need you to inform bank to reduce principle when you dump in extra money. When you need to withdraw the extra money, the bank will still charge you per transaction.
That''s why those semi flexi loan interest is same like normal term loan.


If you are the type of people that every month earn RM5k, then spend RM5k also, i will sugest you just take the normal term loan. Simply because you will no gain or save anythings when you use flexi loan. just take the normal one for the slighly better rate.

If you are the type of people that every month earn RM5k, then spend RM4900 or lesser, then you can go for flexi loan. This little money you saved every month will help you reduce the interest by alot.

For which bank is better, it will need to consider alot like your loan amount, which type of loan you prefer. For flexi loan, its better to choose those bank that convenience to you as you might every day or week go bank in your extra cash to save interest.

Sometimes, the 0.1% or 0.2% is not that really important, more important is the bank service and most convenience to you.

dont worry, all banks almost the same.

flexi or not, is not really essential, all these actually just a game trick by the banks to attarct you. if you have lots of cash, dump more into first payment, lesser loan amount, lesser interest, this basically plays the rules as flexi.

few things you need to ask yourself before apply few banks -
1. you going to support any of your loan officer friend ?
2. how much you want to loan ( this reflect the interest you going to get )
3. tenure ( 13 years, 20 years, 30 years ). of course, dont ever think of 30 years if possible.
4. zero entry ? ( like transfer or mot ), not much.
5. most important, you MUST APPLY LOAN THAT IS AT LEAST MINUS 2% OF BLR. of course, it also depends on the property location. the primer the location, the better the rate.

not hard, quite simple. remember, dont ever bothered by those bankers, if you have any queries, ask any experienced friends or relatives of u.

Flexi or not, it's very important in managing your cash.

Yes, you may dump more for first payment, thus lower loan amount and lower interest accur.
But. you dump in more, mean you cash flow is lesser, what if you found a a very good investment? You'll have no cash to invest and you can lose more money from that. Cash is most important nowaday.

If you have cash, why not you just use the flexi loan and dump into the current account? same interest count to you also. But i will have the ability to use the cash anytime i wan.

About the tenure, i personally 100% support you to take longest as you can, why?
If you take flexi loan, longer tenure mean lower installment. mean you can pay the lesser minimun amount every month.
Yes, of cause if i take 30years tenure, interest will be alot higher. But flexi loan allow you to dump in more every month right?

If you put in same amount of money like 10years loan every month, you can also finish your 30years loan in 10years and even shorter.
And even better, you have lower commitment if you take the 30years loan, i have the flexible to pay the min amount, or same with the 10years amount.
If i choose for 10years loan, you have no choice to pay lesser, you need to pay the same amount for 10years.

Just that you haven't discover the powerfull of flexi loan. Doesnt mean it's the same. It's a very big different in interest saving and cash flow management.

Thanx everyone for your reply. Really appreciated. I was approached by 2 bankers (better not to mention which bank) and the offers is as follows:

Bank 1
---------
Flexi loan
Interest : BLR - 1.7%


Bank 2
--------
So called term and flexi combained (because he said can put in extra money to reduce principal and also to take out the "extra" you put in when you need it - Not sure how true is this)
Interest : BLR - 2.2%


Personally, I would prefer flexi-loan because I can put more money when I have to reduce the sum and take out if I need it.

I was little skeptical abt Bank 2 offer, how could it be so attractive? I even asked if there is any extra charges, special catches, etc and was told there isn't. Anyone heard of this?

So if I would to loan $200k, which one will it be better? Anyone has any sort of home loan calculator or something that I can do projection?

That's common to get this rate in current market. Is your package is Zero Cost or Non Zero cost? No need to worry so much. Just go throught the Lock In period (normally 5years), Penalty charge if early settlement (normally 3%)

Thanx onnying88 for your reply. Wat does it mean by Zero Cost / Non Zero cost? Im not too sure abt it.

The lock in period for Bank 1 is 5 years, not sure abt Bank 2 yet.

So what would you recommend?

Zero Cost mean bank wil bare all the legal fee cost.
Non zero cost mean you need to pay legal fee or finance into the loan.

Non zero cost will offer better rate compare to Zero Cost

If you dun mind, you may pm me which is the Bank 2

I don't understand the mentality of ppl who WON'T opt for full flexi homeloan.

If you're a homemaker, just make sure all the salary goes into that account, and that alone makes up more than the difference in interest rate with the term loan ones...

If you're an investor, if you have any argument to show that term is better, please do share. This I put my ass on the line

Cash out, top up, OD...all these coupled with FULL flexi, it's a dream la...

Hi thanx, Both bank also free legal fees. so I also dunno which one is better, worry that bank 2 has some hidden t&C hmmm

Hmm, few things I can suggest you to check is:
1. Max amount you can put into the loan account...in order to reduce the daily rest interest(i assume is daily rest?). (per year?90% max for the lock-in period?)
2. I believe both bank lock in period is the same. Maybe can check whether their 'cancellation charges and fees' is the same for both banks...when you want to refinance it before the end of the lock in period. Anyway, I dont think you would do that...but...good to know. What is their formula to 'charge' you. On the loan amount? Eg: 2.5% on loan amount + XXXX for some...admin fees...lol.
3. I think you will be 'choosing' the flexi type. Can ask them what are the charges if 1 day (who knows) you would like to withdrawn some money that earlier you have put it into the loan acc. Is it semi-flexi (need 3 days)?Full flexi?


Hmm, ya...i think this are some of the extra things I will ask. Hope this little info ... is helpful. But if you really think is very very unlikely for you to refinance within the lock-in period, and the packages is the same - given by both banks, I'll suggest go for the 'easiest n convenient' for you. For example, my main account/salary is with bank A, and if bank A provide me the same home loan package with bank B, I think bank A is...easier. Of course this include your pass experience with both banks...their customer service, their availability in your area, etc...

Just some few senzzzz from me. Cheers.