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Need Advice In Selecting Home Loan Package
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Yechig



Joined: 05 Nov 2006
Posts: 13

PostPosted: Sat Apr 14, 2007 8:12 am    Post subject: Reply with quote

hi, i'm SCB persaonal finance executive - mortgage. if u need any help can call me at 012-2359500. i can print out the proposal for u to have a clearer picture.

Hi maxdean, i'm so impress on ur amortization table..really can help how to manage our housing loan well.
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bmfive



Joined: 11 Apr 2007
Posts: 2

PostPosted: Sun Apr 15, 2007 3:54 pm    Post subject: Reply with quote

Dear Marxdean,

[quote="marxdean"]
Which bank is Bank A ?

It's CIMB, I have confirm with them again that there will be no extra cost for future re-structuring..
Any final advice for me before signing on the letter offer? Smile

Thanks again for the advices
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Mon Apr 16, 2007 10:23 am    Post subject: Reply with quote

bmfive wrote:

Any final advice for me before signing on the letter offer? Smile


Idea The MOST IMPORTANT advice: Construct a REALISTIC, ACCURATE and EXACT AMORTIZATION TABLE for ALL the housing loan packages which give you an impression that they are more or less the same (which is NOT TRUE actually) Twisted Evil Evil or Very Mad Twisted Evil

Also, regarding the re-structuring matter, it would be best that you ask them to put down this clause of saying that you have the liberty to re-struct the loan in the later years of your loan. They should be willing to do so if they are sincere. Beware, the "oral" promise given to you by ANYONE is NOT A PROMISE AT ALL.


Last edited by marxdean on Mon Apr 16, 2007 12:39 pm; edited 1 time in total
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Mon Apr 16, 2007 11:18 am    Post subject: Reply with quote

Hi swanlake,

First thing first, I would like to thank you for "leading" me into thinking of "a specific situation" where FLEXI-LOAN is somehow MORE SUITABLE than the conventional TERM LOAN EVEN if the former normally charge higher interest than the latter, which is your case here:

swanlake wrote:

We plan to sell off our current house and with withdrawal from EPF it should be sufficient to purchase the new property for own stay.

The problem is there's a timing difference......the new one not ready so we can't move so we can't sell it now.....I reckon we'd be able to sell after we settle in our new home (approx 3 mths after CF n reno...etc...., we have a ready buyer for our current house. So once it's sold, put all the money in the loan a/c......so interest should be minimal.

We don't plan to sell before we settle in just in case....at least there's a house we can fall back on....also what if project delayed...etc

Anyone any suggestion ? How would people do it usually ?


Please allow me to turn the above into a "case study":

Case Study of "swanlake"

Purpose of Property Purchase: Home switching (to achieve better living standards)

Source of Funding: Selling off current property + EPF (which collectively is enough to purchase the new property in cash)

Financing Problems: Do not have adequate down-payment/full-payment for the new property
1) current property cannot be sold yet as a place to live in is always needed
2) EPF cannot be withdrawn to fund the purchase of the second property

Last-sort Solution: To apply for housing loan from banks

Objective of Mortgage Strategy: To MINIMIZE the overall/total cost of home-switching in ALL aspects

Suggested Mortgage Strategy:
Look for a FLEXI-type of housing loan with MOF (of as much as possible, up to) 100%, NO interest during the construction period where instalments only commence after FULL DISBURSEMENT(if possible, if NOT, then get the LOWEST possible of the first 3-year interest rate in the FLEXI-loan market), minimum lock-in period (3 years if possible). "NO NEED" to CARE MUCH on the interest rates thereafter/in the later years (EVEN they are normally be very high). However, MAKE SURE that it is stated in the offer letter/loan agreement that the daily rest interest is only chargeable on the "DIFFERENCE" between the outstanding principal balance and the amount deposited into a mortgage linked current account. Make sure that there is NO PROVISION says that the waiver of interest for the excess payment (the amount your deposited into the mortgage linked current account) is solely based on the lenders' discretion.

1) During the construction period (2 – 3 years)
-> still stay in current house, pay NO progressive interest if possible. In case you need to pay progressive interest, pay minimum progressive interest (if not much cash), or pay instalment and dump some-more into the mortgage linked current account (if still have excessive cash)

2) On vacant possession
-> sell-off the current property to the “ready” buyer, dump the cash capitalized from the disposal into the mortgage linked current account
-> proceed to apply for EPF withdrawal and pay into the housing loan, if NOT ALLOWED, dump into the mortgage linked current account
* As your EPF + Capitalization is NO LESSER than the New Property Price, EPF + Capitalization should be MORE than the Outstanding Loan Principal Amount, and the interest chargeable is NIL, or at least at minimal.
-> monitor your monthly statements to verify that NO INTEREST is chargeable, and your stipulated monthly instalments are ALL used to reduce the outstanding pricipal balance.
-> maintain the necessary amount in the mortgage linked account so that the interest chargeable is ALWAYS NIL.

3) On expiry of lock-in period
-> pay-off the FLEXI-loan and redeem your new property.

Remarks:
1) Term-loan is less suitable as normally the lenders LIMIT the PREPAYMENT amount per calendar year. The EPF money is normally taken as part of the PREPAYMENT for that calendar year as well. When PREPAYMENT is limited, you cannot avoid having the major part of your outstanding loan principal to "generate" interest for the lenders.
2) FLEXI-loan is preferred since for your case you actually "outbreak" these "limitations":
i) HOW MUCH you can put in the mortgage linked account to offset the interest chargeable?
-> You are able to dump a huge amount (EPF + Capitalization) into the mortgage linked current account enough to OFFSET ALL interest chargeable.
ii) HOW LONG you can maintain that amount you have deposited into the mortgage linked current account?
-> You are able to maintain that amount in i) for the FULL PERIOD of lock-in period, and pay-off the loan the next day after the lock-in period.

Idea MORE IMPORTANTLY, you NEED NOT to tell your lender you purpose of seeking financing is to overcome the "timing" problem you face in this home-switching process.

Anyway, you are advised to justify the practicability of the above suggested mortgage strategy.

swanlake wrote:

Still on the topic of flexi-loans, say the monthly instalment includes calculated interest so at the end of tenure.....say for 100k loan, we would have paid 114k but based on records on actual interest calculated.....it shortens tenure or 'bank owes us'...something like that ?


I can't actually get what you mean ... Crying or Very sad Embarassed Embarassed


Last edited by marxdean on Mon Apr 16, 2007 1:12 pm; edited 1 time in total
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Mon Apr 16, 2007 12:05 pm    Post subject: Reply with quote

Yechig wrote:

Hi maxdean, i'm so impress on ur amortization table..really can help how to manage our housing loan well.


Well Yechig,
Thanks. And I guess as a mortgage loan officer, you should have been able to construct an amortization as such, too, right ?
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KingHenry14



Joined: 19 Jan 2007
Posts: 58
Location: Selangor

PostPosted: Mon Apr 16, 2007 2:40 pm    Post subject: Reply with quote

swanlake wrote:

Still on the topic of flexi-loans, say the monthly instalment includes calculated interest so at the end of tenure.....say for 100k loan, we would have paid 114k but based on records on actual interest calculated.....it shortens tenure or 'bank owes us'...something like that ?


Actually what I can see in Flexi Loan & Conventional Loan is, you got to put certain amount such as "untouched savings" eg: RM100/mth in Flexi Loan account.

Depend on the difference Flexi Loan interest rate & those conventional interest rate for whole tenure for example.

If the difference between these 2 are not so big, let's say 0.5% then by having RM100~RM200 consistently in the link saving/current account should be able to offset the higher interest rate charged by the Flexi Loan compare to the conventional loan or even you can reduce the principal faster.

Anyway, the key elements you need to watch out is the difference between Flexi Loan's interest rate charged compare to those lowest interest rate charged conventional loan such as BLR-1.5%.

If the difference is bigger, you need bigger "untouched savings" to offset the highest interest.

Also, depends on how big is your loan amount.

If your loan amount is not really big , ~RM150K and let's say the Flexi interest rate is 5.75% at present while conventional loan charges you at 5.25%, then if you consistently save more than RM200/mth, it should be able to reduce the principal faster because of its gradual effect throughout the years compare to those have to wait for 2 ~ 3 years then dump in one lumsum as prepayment to reduce the principle.
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Mon Apr 16, 2007 3:38 pm    Post subject: Reply with quote

KingHenry14 wrote:

If your loan amount is not really big , ~RM150K and let's say the Flexi interest rate is 5.75% at present while conventional loan charges you at 5.25%, then if you consistently save more than RM200/mth, it should be able to reduce the principal faster because of its gradual effect throughout the years compare to those have to wait for 2 ~ 3 years then dump in one lumsum as prepayment to reduce the principle.


With regard to "then if you consistently save more than RM200/mth", how different is the EFFECT of this from PREPAYMENT of conventional term loan Exclamation

By having "too much" flexibilities in withdrawal, ones are normally tempted to withdraw the money and used it elsewhere for something he "WANTs", NOT "NEEDs" and the high interest of FLEXI-loan comes into effect once this "un-touched amount" is withdrawn. Bankers have had this study of consumer behavior done and it has CLEARLY shown that this is the FACT now, just look at how many has gone broke with credit cards. Twisted Evil Evil or Very Mad

Well, MOST term loans allows PREPAYMENT of any amount to be made on any day (normally limited to 1 year instalment amount without notice, while written notice is required to prepay MORE). One has NO NEED to wait until he has accumulated quantum of RM1000 or higher amount to effect PREPAYMENT. However, of course, some "stubborn" banks still practicing the old way. Therefore, attention need to be paid when one is examing the terms and conditions of the offer letter/loan agreement.
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Mon Apr 16, 2007 3:56 pm    Post subject: Reply with quote

KingHenry14 wrote:

If your loan amount is not really big , ~RM150K and let's say the Flexi interest rate is 5.75% at present while conventional loan charges you at 5.25%, then if you consistently save more than RM200/mth, it should be able to reduce the principal faster because of its gradual effect throughout the years compare to those have to wait for 2 ~ 3 years then dump in one lumsum as prepayment to reduce the principle.


By the way, hope everyone realizes that the money in the mortgage linked account is NOT reducing the principal balance. And hence with regard to the above coarse example of a particular monthly payment, the RM200 is merely enough to "cancel" the extra interest of 0.5% charged by FLEXI-loan. If one really wishes to "ATTACK" the outstanding pricipal balance (to reduce the principal faster), one need to deposit MORE than this RM200.
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swanlake



Joined: 15 Mar 2006
Posts: 18

PostPosted: Mon Apr 16, 2007 7:33 pm    Post subject: Reply with quote

marxdean,

Thanks for strategy. It has indeed given me some pointers. Will slowly digest them.

However, I don't think I can go for very high MOF. Got to work out the % later in order to withdraw the full amt from a/c 2 for EPF and hopefully from both our a/cs.

If it's in this case, may have to apply for EPF withdrawal on separate occassions...ie...one earlier (1st time withdrawal) than the other (2nd time withdrawal). Wonder if there's any problem..have yet to go see EPF officer.

On the monthly instalment to the bank, I guess it'd have included the interest charges projected and at the end if minimal interest is charged then it would shorten the tenure. Hope I'm right in this.

I guess once my lump sum from EPf or proceeds from the old house is used to settle most of the loan amt....but I can't settle full, right until the tenure is over ?

So I don't need to do that amortization table ?

Thanks to KingHenry as well.

Laughing Surprised
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Tue Apr 17, 2007 9:59 am    Post subject: Reply with quote

swanlake wrote:

However, I don't think I can go for very high MOF. Got to work out the % later in order to withdraw the full amt from a/c 2 for EPF and hopefully from both our a/cs.


NOPE. If my knowledge is up-to-date (anyone find NOT correct please inform me Exclamation Embarassed ), you cannot withdraw money from EPF ACC 2 to finance your SECOND property. You can only do that after you dispose your FIRST property.

Therefore, you should go for HIGHEST % of MOF offered by the lenders. With that, you may withdraw MORE (or FULL AMOUNT of your ACC 2) after you sell-off your first property, because at that time, you OWE MORE from your lender (and hence you are allowed to withdraw MORE Exclamation )

swanlake wrote:

If it's in this case, may have to apply for EPF withdrawal on separate occassions...ie...one earlier (1st time withdrawal) than the other (2nd time withdrawal). Wonder if there's any problem..have yet to go see EPF officer.


If either you or your spouse (or anyone who is a co-purchaser of your new property) NEVER withdraw money from his/her EPF ACC 2 for his/her FIRST property (and hence this new property is the "FIRST" property.), then this person can withdraw money from EPF ACC 2, which is quite a lot now as the accumulated sum in EPF ACC 3 upto Dec 2006 has been combined with EPF ACC 2.

swanlake wrote:

On the monthly instalment to the bank, I guess it'd have included the interest charges projected and at the end if minimal interest is charged then it would shorten the tenure. Hope I'm right in this.


Your MONTHLY INSTALMENT will carry in it a portion to pay for the interest of the months during the construction period (a period of which you cannot sell-off your first property and withdraw money from EPF to dump into the mortgage linked account). That's why I asked you to negotiate for ZERO PAYMENT during construction period.

Let your lender charges HIGHER INTEREST during the later years becuase this NEVER AFFECT you. Once your property is completed and you have sell-off your first property, you may dump the money into the mortgage linked account. And also goto withdraw money from EPF ACC 2, then dump this money again into the same mortage linked account. As your capitalization from the first property and the EPF ACC 2 sum is GREATER than your loan amount (or the then outstanding principal balance), the INTEREST IS NIL. HOWEVER, you MUST MAKE SURE that there is NO CLAUSE in your loan offer letter/loan agreement saying that the waiver of interest is solely based on your lender's discretion. ( Evil or Very Mad Twisted Evil Evil or Very Mad SOME BANKS HAVE THIS CLAUSE Exclamation BEWARE Exclamation ) If this clause is included, that's mean your lender can at anyone time charge you interest even you have RM1 Billion in your mortgage linked account Exclamation Twisted Evil Evil or Very Mad Twisted Evil Evil or Very Mad

swanlake wrote:

I guess once my lump sum from EPf or proceeds from the old house is used to settle most of the loan amt....but I can't settle full, right until the tenure is over ?


TRUE. To avoid penalty, you can only settle the loan in full after the lock-in period, normally 5 years from the first disbursement. Anyway, this should NEVER hurt you because the interest chargeable monthly is NIL as long as you keep an adequate amount of money in the mortgage linked account identical to your latest outstanding pricipal balance of that time.

swanlake wrote:

So I don't need to do that amortization table ?


DEFINITELY NEEDED Exclamation You ALWAYS need to have amortization table for every mortage packages you are considering. NOT just an ordinary amortization table, you MUST have a REALISTIC, ACCURATE & EXACT amortization table for every of these packages in order to compare apple-to-apple.

Also, that REALISTIC, ACCURATE & EXACT amortization table will be needed to monitor your selected FLEXI-loan later, at least to know what is the MINIMUM AMOUNT to be maintained in the mortgage linked account in order to achieve ZERO interest for the period after vacant possession to the end of lock-in period.
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swanlake



Joined: 15 Mar 2006
Posts: 18

PostPosted: Tue Apr 17, 2007 12:47 pm    Post subject: Reply with quote

marxdean wrote:



Your MONTHLY INSTALMENT will carry in it a portion to pay for the interest of the months during the construction period (a period of which you cannot sell-off your first property and withdraw money from EPF to dump into the mortgage linked account). That's why I asked you to negotiate for ZERO PAYMENT during construction period. .


I can proceed to withdraw from the EPF a/c that has not been touched before upon approval of bank loan. And dump this amt into the mortgage a/c.


The developer will absorb legal fees so I just have to make sure the 1st few years are the lowest rates.

Is the disbursement / documentation fee for bank loan based on loan amt ?



marxdean wrote:


Let your lender charges HIGHER INTEREST during the later years becuase this NEVER AFFECT you. Once your property is completed and you have sell-off your first property, you may dump the money into the mortgage linked account. And also goto withdraw money from EPF ACC 2, then dump this money again into the same mortage linked account. As your capitalization from the first property and the EPF ACC 2 sum is GREATER than your loan amount (or the then outstanding principal balance), the INTEREST IS NIL. HOWEVER, you MUST MAKE SURE that there is NO CLAUSE in your loan offer letter/loan agreement saying that the waiver of interest is solely based on your lender's discretion. ( Evil or Very Mad Twisted Evil Evil or Very Mad SOME BANKS HAVE THIS CLAUSE Exclamation BEWARE Exclamation ) If this clause is included, that's mean your lender can at anyone time charge you interest even you have RM1 Billion in your mortgage linked account Exclamation Twisted Evil Evil or Very Mad Twisted Evil Evil or Very Mad



Thanks for this...never knew there's such a clause. I will then withdraw from the other EPF a/c after the 1st house is sold provided it's less than 3 years from my new property's SPA.
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Tue Apr 17, 2007 1:19 pm    Post subject: Reply with quote

swanlake wrote:
marxdean wrote:



Your MONTHLY INSTALMENT will carry in it a portion to pay for the interest of the months during the construction period (a period of which you cannot sell-off your first property and withdraw money from EPF to dump into the mortgage linked account). That's why I asked you to negotiate for ZERO PAYMENT during construction period. .


I can proceed to withdraw from the EPF a/c that has not been touched before upon approval of bank loan. And dump this amt into the mortgage a/c.


TRUE Exclamation If you have EPF ACC 2 which has never been withdrawn for home finiancing. And if this is the case, you really need to adjust the % of MOF (which I think 100% will not be offered by the lenders). And remember to dump it into the mortgage linked account, and you will save even more cost in your home-switching process. Again, term-loan is somehow inferior here since normally you CANNOT make PREPAYMENT during construction period. And so normally one cannot avoid paying progressive interest in term-loan.

swanlake wrote:

The developer will absorb legal fees so I just have to make sure the 1st few years are the lowest rates.


NOPE Exclamation Your developer NEVER absord your legal fees. When your developer say the SPA is FREE, it is NONSENSE Exclamation Twisted Evil Evil or Very Mad Twisted Evil When you sign SPA withour paying any legal fee, it simply means you are willing to LET GO your right to hire your own legal representative. The lawyer preparing the documents is on the developer side should anything goes wrong later Exclamation You DO NOT have any lawyer hired for yourself, NO NEED TO PAY FOR THE LEGAL FEE TO THE LAWYER, IT IS NOT FREE Exclamation You MUST have this concept CLEAR Exclamation Idea

YES Exclamation Make sure the first few years interest rates are as low as possible Exclamation

swanlake wrote:

Is the disbursement / documentation fee for bank loan based on loan amt ?


YES. and ASK FOR discount Exclamation The professional legal fees part is FIXED, but there are many aspects in which you are being charged, too, and this portion could be discounted. YES I HAVE DONE THAT FOR MY OWN CASE.

swanlake wrote:

I will then withdraw from the other EPF a/c after the 1st house is sold provided it's less than 3 years from my new property's SPA.


Yes. The sooner the better. You know how "efficient" our EPF officers are ... Evil or Very Mad Evil or Very Mad
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swanlake



Joined: 15 Mar 2006
Posts: 18

PostPosted: Tue Apr 17, 2007 1:51 pm    Post subject: Reply with quote

marxdean wrote:


NOPE Exclamation Your developer NEVER absord your legal fees. When your developer say the SPA is FREE, it is NONSENSE Exclamation Twisted Evil Evil or Very Mad Twisted Evil When you sign SPA withour paying any legal fee, it simply means you are willing to LET GO your right to hire your own legal representative. The lawyer preparing the documents is on the developer side should anything goes wrong later Exclamation You DO NOT have any lawyer hired for yourself, NO NEED TO PAY FOR THE LEGAL FEE TO THE LAWYER, IT IS NOT FREE Exclamation You MUST have this concept CLEAR Exclamation Idea

YES Exclamation Make sure the first few years interest rates are as low as possible Exclamation



YES, I'm aware of this. Will get my lawyer friend to go through the SPA first before signing it.


swanlake wrote:

Is the disbursement / documentation fee for bank loan based on loan amt ?


marxdean wrote:

YES. and ASK FOR discount Exclamation The professional legal fees part is FIXED, but there are many aspects in which you are being charged, too, and this portion could be discounted. YES I HAVE DONE THAT FOR MY OWN CASE. :


The bank legal fees also absorbed by developer. Thanks again...never knew can ask for DISCOUNT....



Any suggestion too which banks to look at in your opinion and experience ?

Wink
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Tue Apr 17, 2007 2:25 pm    Post subject: Reply with quote

swanlake wrote:

YES, I'm aware of this. Will get my lawyer friend to go through the SPA first before signing it.


GOOD for you to have lawyer friend.


swanlake wrote:

The bank legal fees also absorbed by developer.

Again, same case for the SPA, there is NO FREE LUNCH, the housing loan legal fees is NOT ABSORDED by the developer, it is ABSORDED into your loan. Interest rates tend to be HIGHER for mortgage packages with so-called "FREE LEGAL FEES", that's mean the borrower STILL PAYING, EVEN MORE than the actual legal cost, it simply being delayed. BUT for your specific case you have little impact (if you need to pay instalment during construction period), or even NO impact (once you dump your huge money in the mortgage linked account).


swanlake wrote:

Thanks again...never knew can ask for DISCOUNT....


They never give if you never ask.

swanlake wrote:

Any suggestion too which banks to look at in your opinion and experience ?

Wink


I have little experience in FLEXI-loan(s). In fact, I NEVER consider them for my property because I knew that I won't benefit anything from these packages, but only pay more mortgage interest, and that's it.

BUT you case is ENTIRELY different story. I think you can definitely take advantages of the "features" of FLEXI-loan, BUT only if your FLEXI-lender is "sincere", that he NEVER says the waiver of interest on excess payment (the amount you dump into your mortgage linked account) is based on his sole discretion at anytime he likes Exclamation Twisted Evil Twisted Evil
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swanlake



Joined: 15 Mar 2006
Posts: 18

PostPosted: Wed Apr 18, 2007 11:00 am    Post subject: Reply with quote

marxdean wrote:


Again, same case for the SPA, there is NO FREE LUNCH, the housing loan legal fees is NOT ABSORDED by the developer, it is ABSORDED into your loan. Interest rates tend to be HIGHER for mortgage packages with so-called "FREE LEGAL FEES", that's mean the borrower STILL PAYING, EVEN MORE than the actual legal cost, it simply being delayed. BUT for your specific case you have little impact (if you need to pay instalment during construction period), or even NO impact (once you dump your huge money in the mortgage linked account).



I also suspect there might be some 'hidden cost' somewhere but in the developer's panel of banks, I think there are more than 10 and their rates on their flyers are very competitive and they would normally include those with 'Zero Moving Cost' or the usual mortgage and conventional loan as well.

I supposed since developer say we can choose any package and they'll pay our legal fees for bank loan...only condition must be from their panel so not much of a problem with such choices (like almost every bank involved, foreign / local, big or small. In such a case...better not choose the 'Zero Moving Cost' as somehow the hidden cost will be pre-built into the rates.


Thanks again for your sharing of your knowledge.

Cheers,
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Wed Apr 18, 2007 11:32 am    Post subject: Reply with quote

swanlake wrote:

I also suspect there might be some 'hidden cost' somewhere but in the developer's panel of banks, I think there are more than 10 and their rates on their flyers are very competitive and they would normally include those with 'Zero Moving Cost' or the usual mortgage and conventional loan as well.


It is quite easy to "check" whether there is any "hidden cost" built into the loan Idea Arrow Just pick the "lowest rate" package "in town" from ANY lenders in or out of the panel, and then compare to the "lowest rate" package included in the list offered by the panel. Eventhough "ALMOST ALL" banks/lenders are in the panel, it doesn't mean that "EVERY PACKAGE" of "ALL" these banks/lenders are available for you to choose Exclamation , right Question

swanlake wrote:

I supposed since developer say we can choose any package and they'll pay our legal fees for bank loan...only condition must be from their panel so not much of a problem with such choices (like almost every bank involved, foreign / local, big or small. In such a case...better not choose the 'Zero Moving Cost' as somehow the hidden cost will be pre-built into the rates.


Normally I would advise people NOT TO TAKE ZMC as much as possible, as the interest rates will be higher than those NON-ZMC packages, especially in the later years of the loan when the loan is FULLY DISBURSED. However, for your "special case" of "home-switching", it might be the different story again. It really depends on when and how much the lender has raise the interest rate(s) for that ZMC package: If the "high interest" is "embedded" into the later years of your loan, it might sounds logical to take ZMC because you have more than enough amount in your mortgage linked account to "OFFSET" whatever high-interest possible. In this case, a REALISTIC, ACCURATE & EXACT AMORTIZATION TABLE is CERTAINLY helpful in making the final decision. Wink
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Tue Apr 24, 2007 9:43 am    Post subject: Reply with quote

Any updates or feedbacks from swanlake ?
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Tue Apr 24, 2007 4:28 pm    Post subject: Reply with quote

A very good article to share : .://..orientaldaily.com.my/news_item.asp?NewsID=8620

but for those able to read chinese only. Embarassed

Well, I have nothing to do with Mortgage Broker, not an advertisement here Razz
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stea2221



Joined: 26 Aug 2007
Posts: 30

PostPosted: Thu Aug 30, 2007 7:39 pm    Post subject: Reply with quote

Marxdean,

I'm very impressed with the depth of your knowledge on this subject & more importantly, your kindness to share the knowledge with us all. I've learnt so much from just this one thread Very Happy

just to share, i'm looking for financing myself, and I have constructed my own amortization tables for all the packages that were offered. The difference in total interests is amazing & being calculative here will pay you handsomely in interest savings. My problem now would be how to accurately tabulate the interest during ocnstruction period. Is there a best way to assign % of disbursement during this period? and how to put it in a financial model?
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LongBeforeHorn



Joined: 24 Aug 2007
Posts: 18
Location: Kuala Lumpur

PostPosted: Sun Sep 02, 2007 1:05 am    Post subject: Re: Need Advice In Selecting Home Loan Package Reply with quote

[quote="marxdean"][quote="bmfive"]
Is there any other matters I should look into other than the rates, such as:
a) flexbility of repayments
b) flexibility of withdrawals if i dump in 50% cash
c) hidden charges/maintenance cost on the account
[/quote]

Besides the above listed, the [b]MOST IMPORTANT[/b] matter is [b]HOW WELL[/b] the interest rates offered [b]FIT INTO[/b] the construction period of your property Exclamation

You [b]MUST CONSTRUCT A REALISTIC, ACCURATE AND EXACT AMORTIZATION TABLE[/b] in order to figure out the [b]TRUTH[/b] Exclamation[/quote]

Sorry for the noob question. How does one construct a amortization table? What are the tools available (assume online and FOC) that one can see how much one is paying per month for the entire tenure of the loan?

Thanks
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