Bank Home Loan package

[terrenceterrence]

Was offered BLR-2.3% by AmBank for a RM480k loan. Since I have lost touch with Malaysian interest rates, I wanna know if this is acceptable?

Any brothers here have any better suggestions?

KNNCCB interest rates, I am only paying 1.25% over here and now current interest rates are below 1%. So i think Malaysian banks are really "singa open mouth big, out right to eat you"

[hanz079]

I'd take it... my home loan was taken at the rate of BLR -2%
This was before bank negara decided to increase the BLR rates... so, I can say I got a pretty bad deal.
Nothing I can do about it though...

[wslee]

There is possible of BLR-2.4% for this amount.What are the features of your housing loan?
MRTA(included)?How many years of loan tenure?Full Flexible housing loan?Valuation report imposed?

[dpkong]

loans are always "singa out to eat you" ones.

try to nego a fixed rate since BNM's BLR is ridiculous. seems like they're working hard to stifle loans.. meaning they'll bleed the gullible and greedy dry.

[terrenceterrence]

There is possible of BLR-2.4% for this amount.What are the features of your housing loan?
MRTA(included)?How many years of loan tenure?Full Flexible housing loan?Valuation report imposed?

wah let me recall....

loans in malaysia so complex one compared to over here.

MRTA - included
tenure - 37 years
full fexi
valuation - no cause under construction property (whatever that means  )

[hanz079]

There is possible of BLR-2.4% for this amount.What are the features of your housing loan?
MRTA(included)?How many years of loan tenure?Full Flexible housing loan?Valuation report imposed?

wah let me recall....

loans in malaysia so complex one compared to over here.

MRTA - included
tenure - 37 years
full fexi
valuation - no cause under construction property (whatever that means  )

Wow, can loan 37 years ar? I tot maximum 30 years? Outdated liao me... Hahaha

[terrenceterrence]

yeah i was surprised also... over here...max is till 60 years old.

if i remember correctly, Malaysia now is till 70 years old!!!! 

my eyes popped out..... work until you die man....

jsut look at this ...with a 1.25% interest rate my yearly mortgage payment is divided 50-50 for both the interest and principal. I can't imagine how much a 4.3% interest goes into principal and interest.

That is why eventhough my father worked in a bank for 32 years, he still have a disdain distrust in banks.

[hanz079]

yeah i was surprised also... over here...max is till 60 years old.

if i remember correctly, Malaysia now is till 70 years old!!!! 

my eyes popped out..... work until you die man....

jsut look at this ...with a 1.25% interest rate my yearly mortgage payment is divided 50-50 for both the interest and principal. I can't imagine how much a 4.3% interest goes into principal and interest.

That is why eventhough my father worked in a bank for 32 years, he still have a disdain distrust in banks.

What i know is my yearly mortgage payment for the 1st 10 years is something like 80% interest and 20% principle.... Haih... Pay until i am 62 years old oni all my hutang langsai....

[siodee]

I think it is about the market rate BLR-2.x%, unless you can go fixed rate. The bank even offer 2 generation loan, mean you got the loan for yourself and commit on behalf of your children, so your children will serve the loan when you die. 

When you pass the last word to your offspring, "Dad got nothing left for you, just some watches, some pre-owned from the Uncle in MWF  and of course follow with huge debt, please pay on time, otherwise this house will be lelong...Good Luck kids" 

So it is better clear the principal when you have extra $$$$, but then no more extra $$$ for this hobby, a dilemma indeed...

Just my 39 cents

[hanz079]

I think it is about the market rate BLR-2.x%, unless you can go fixed rate. The bank even offer 2 generation loan, mean you got the loan for yourself and commit on behalf of your children, so your children will serve the loan when you die. 

When you pass the last word to your offspring, "Dad got nothing left for you, just some watches, some pre-owned from the Uncle in MWF  and of course follow with huge debt, please pay on time, otherwise this house will be lelong...Good Luck kids" 

So it is better clear the principal when you have extra $$$$, but then no more extra $$$ for this hobby, a dilemma indeed...

Just my 39 cents

Got extra money clear principle oso scared LHDN call me and ask me " Brother!!! How you found a wad of cash to clear your housing loan... when you income tax state that you make 24k a year?"
Kantoi bro... but I guess I will be working till I finish all my loans... 62 years old to be exact... that is if I don't take up any more commitments...

And I don't think leaving behind debts for the next generation is right...
But I will do this though... my inheritance for my kids will state clearly that they cannot sell the property passed on to them until they are 38 years old... then they can sell if they want.
Reason being I see alot of young ppl blowing away their parents inheritance in a flash... just a precaution that I take.
And when my kids have their own kids... they will be thinking "heck, when my dad left me this house, he only let me sell it when I am 38... I did not sell it in the end but I see what my dad did there" And I will do the same to my kids as well... Success!!! Inheritance FTW!!!

[takashi78]

[hanz079]

I will save that pic and leave it to my kids as well... 

[dpkong]

my opinion on any home loan package is to fire up the spreadsheet and run the calculations with the rates provided. remember that any rates pegged against BLR is still volatile. unless BLR is low (which is is not now), always try to nego a fixed rate and not let the interest go past 70% of the loan amount. i think anything over 18 years means you're paying for TWO houses.

the loans nowadays are designed to keep fixed, middle-income individuals forever in debt.

[terrenceterrence]

that is why i always believe in buying 2 at one go...... barring a global/local meltdown and with rapid urbanisation, spaces are scare. so to me, it's sell one to cover for the other....

life have thought me to not trust, banks, lawyers, agents and aesthetics doctors 

[terrenceterrence]

I will save that pic and leave it to my kids as well... 

what? you come back as a cat to keep an eye out on them?  giving them the creeps? 

[pexus]

sigh...here, work day and night, pay for roof above head and children's education, with hope they will take care of us when old age....

sometimes thought of moving abroad...but not sure if got the guts or energy to start all over..

Anyway tumpang a bit...what do you guys think of those home smart type of loan, which is basically an OD type of facility...lf you dump in all your savings into that account, it will automatically reduce your interest. Is it true that for long term, you will end up paying less at the end of your loan tenure? (as you don't withdraw money and buy a new AP or PP every year. 

[wslee]

sigh...here, work day and night, pay for roof above head and children's education, with hope they will take care of us when old age....

sometimes thought of moving abroad...but not sure if got the guts or energy to start all over..

Anyway tumpang a bit...what do you guys think of those home smart type of loan, which is basically an OD type of facility...lf you dump in all your savings into that account, it will automatically reduce your interest. Is it true that for long term, you will end up paying less at the end of your loan tenure? (as you don't withdraw money and buy a new AP or PP every year. 

Well basically you can apply for Full Flexi Loan,whereby you are given a Current Account(Non Interest Bearing Account)
Whatever money you have in your Current Account will offset your principal.
Even if you dump 200k into your current account(assuming you borrow at 200k),mathematically you are no longer owing the bank money.Your monthly installment is just to deduct the principle loan account.Legally you are still owing the bank,as the property is not yet discharge from the bank.

Pexus,you are right. In the long run,you will be paying lesser interest and shorter tenure

[pexus]

sigh...here, work day and night, pay for roof above head and children's education, with hope they will take care of us when old age....

sometimes thought of moving abroad...but not sure if got the guts or energy to start all over..

Anyway tumpang a bit...what do you guys think of those home smart type of loan, which is basically an OD type of facility...lf you dump in all your savings into that account, it will automatically reduce your interest. Is it true that for long term, you will end up paying less at the end of your loan tenure? (as you don't withdraw money and buy a new AP or PP every year. 

Well basically you can apply for Full Flexi Loan,whereby you are given a Current Account(Non Interest Bearing Account)
Whatever money you have in your Current Account will offset your principal.
Even if you dump 200k into your current account(assuming you borrow at 200k),mathematically you are no longer owing the bank money.Your monthly installment is just to deduct the principle loan account.Legally you are still owing the bank,as the property is not yet discharge from the bank.

Pexus,you are right. In the long run,you will be paying lesser interest and shorter tenure

thanks mate! 

[chin]

IMO for a salaryman it is better to opt for a 'semi-Flexi', u still get your excess payment knock off the principal amount but without the flexibility of OD withdrawal. For withdrawal of excess payment need to use ATM (RM5k max) or over the counter.

Unless you intend to roll your money like a business owner, why pay OD fees (open account RM100 to RM200, monthly RM10.00 maintainence fees) and get less favourable terms. With easy access to funds one might be tempted to utilise the cheque facility.

Else for a semi-Flexi there is no fees involved (mayb RM5 for ATM card) and although abit more inconvience (for > RM5k withdrawal) you still have access to your cash in case of emergency.   

[hooidcaster]

Guys, I am totally confuse with this house loan thingy..  Now, I am scare that one day, the house's price is too high, that we have to sleep in diy atap house inside forest.. Sigh..

[wslee]

If u think u can afford,then buy. Dont think too much.

Even if u wanna buy for investment,do make sure that in the event the house is not able to rent out. You still can stay

[acurusaragon]

Under the new budget ...

They said incentives is to build AFFORDABLE home priced up to 400 K ... with flexi down payment or no down ...

Wow .... that is too AFFORDABLE when the average new startup kids earn around 3 k and pay instalment at 3.5 K

How to makan loh ...

[lowengen]

Anyway, just to check, what's the best current pricing for houses?

Sub-sale and new...
Isit BLR - 2.2% or can get better?

[dpkong]

Under the new budget ...

They said incentives is to build AFFORDABLE home priced up to 400 K ... with flexi down payment or no down ...

Wow .... that is too AFFORDABLE when the average new startup kids earn around 3 k and pay instalment at 3.5 K

How to makan loh ...

hide behind bushes and jump out at passing traffic to stop them... oh wait, you need a badge to do that..

  

you get the idea though...

[kenixck]

my opinion on any home loan package is to fire up the spreadsheet and run the calculations with the rates provided. remember that any rates pegged against BLR is still volatile. unless BLR is low (which is is not now), always try to nego a fixed rate and not let the interest go past 70% of the loan amount. i think anything over 18 years means you're paying for TWO houses.

the loans nowadays are designed to keep fixed, middle-income individuals forever in debt.

Just enrolled til 65. I might die first.