is it normal if need charge 2% penalty after lock-in-period 5 year?

This post has been edited by daruma: Apr 14 2009, 05:03 PM

apasal partial payment need 2% penalty?

apa bank? And daruma uncle, can be more specific with your question?

Bank loan? I think that should be around the normal rate in market. Some charge 3%.

Which Bank?

Nvr heard of this

This post has been edited by eugene jk: Apr 14 2009, 07:31 PM

I think this is the 2.5% that the bank still holds? No way they charge you penalty after lock in period. In any case, read the loan agreement. That is unique to you in the whole wide world and no bankers or lawyers can dispute it.

There should be no penalty after lock in period 5 years.

should be 3% or some bank even charge 4%, public bank.

if, after 5 years of lock-in period, there will be 0% penalty charge.

sorry was hurry to sign the offer letter.

RHB lo ... bully me . lock in period 6 years. 3% with in lock in period. 2% penalty after lock-in period.

After lock in where got penalty wan?

then like that looks like it is locking u for whole tenure loo?

can show us the agreement tat show the 2% penalty charge?so we can read through the details inside.thanks. i jus sign the offer letter from RHB..this matter make me worry lo..if got such penalty, this Rxb really bad..must tell others lo...make it name bad if got such clause..haha...

they say is special condition coz give me "so called" low rate BLR -2.0 . (phuik)

errr, correct me if wrong, this 2% seems to be fees on prepayment not on early settlement within the lock in period.

From my understanding, it should be locked for whoe tenure already.
Absolutely not normal and not a good deal at all. You cant reduce your principle at your wish.

The 2% will be charge when you paying extra to reduce the principle.
For example, you get a bonus RM10k and you want to dump in to reduce principle, they will charge you 2% of the RM10k in order for you to do so. So in this case you'll be charge for RM200 to reduce RM10k principle.

If you refinance or settle the loan in 6 years period start count from the 1st fully disburse date, you will be charge 3% of the loan outstanding amount OR RM10000 which ever higher.

This offer is not reasonable and i think you should ask them to change it. BLR-2% if not so special in today.

If you dont mind, pm me your loan amount and loan package you looking for. I try look for better deal for you.

Onn

i signed edi lo . no choice . all other banks gang up to bully me.

ambank give BLR-1.95%, public bank give 80%, other dun seem interested.


can only choose from their panel banks. not allowed to go out find other banks.

This post has been edited by daruma: Apr 17 2009, 09:14 AM

Too bad for this then.
By the way what's you loan amount? just curious.

208k

Poor dude, this is very damn stupid.

RHB is farkup recently, been rejecting most of my cases, and now... prepayment charges.

Have you signed all the Loan Agreement etc? IF not, you still can choose not to sign.

signed everyting edi lo... really no choice one.

There's no such thing as no choice unless no proper preparation was made

TnC;
3)...
a)for partial prepayment of the housing loan/term loan during the whole tenure, a prepayment fees of 2% on the amount to be prepaid will be chargeable which is to be debited into housing loan/term loan account;

-It means, if you make prepayment of RM 50k, you will be charged an fees of 2% over the RM 50k (RM 1k). If its RM 100k, then its RM 2k. In other words, if you dump RM 50k into the loan account to offset your principal, you'll only deduct RM 49k of principal.

b)for the prepayment of the whole outstanding housing loan/term loan made within the first six (6) years from the date of first drawndown, a prepayment fees of 3% flat on the outstanding amount of banking facility(ies) or RM 10,000.00 whichever is higher is chargeable.

-This is the penalty charged should you choose to fully settle the loan account within 6 years time from first release. Now i see the reason of the clause stated of RM 2% over the prepayment... cause your exit penalty is 3% from Loan OUTSTANDING, not facility limit.


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No point getting that clause since min penalty amt is 10k for full settlement within locked-in period rite..

Public Bank's exit penalty is also based on outstanding.
But i don't remember seeing prepayment charges...

Hi Daruma,

I'm not mortgage expert however i have applied for more than 10 mortgage products before and read most of the letter offer. This is the first time i see such clause. I think u applied for a term loan. However i'm surprise the rate for term loan is not as attractive too considering your loan size. The bank might "load" the lending rate if they perceived the property or the borrower is consider to be high risk.

Anyway don't think too much. Already sign, then there is no other choice. Good luck dude

The agreement does seem quite unfair. Which bank is this loan from? I am also buying house now and am looking at some bank loans.