Malaysia Real Estate

[whsaw]

Dear All,

I am new to this forum and the property market so I thought i'd share my loan package and also to seek advice from the more experienced members. I have 2 packages lined now and am torn between the two:

400k loan for an uncompleted property (complete mid to end 2009)

1. PBBANK:

1st Year: 0%
BLR - 2.0% thereafter

2. AIA:

1 to 5 years: 5.35%
5.99% thereafter

Both are flexible repayment, daily interest calculation.

I am leaning towards option 1 as it's quite hard to beat the interest saved from the first year 0% interest (all your money goes into the principal)

My questions are:

1. Are there any hidden costs I should be aware of or look out for? What typically are those? Repayment fees?

2. Are the loans typically compounded interest? I read from another post that AIA is not compounded interest?

3. Are there any bankers / persons out there with a better package which you can advice me of?

Thanks for any help / replies in advance.

WH

[globalvision77]

[whsaw]

I have sent you an email to lucky2um@yahoo.com.hk

Thanks =)

[ed0gawa]

[whsaw]

ed0gawa,

Thanks for the tip. I will go check with the bank and get back to you guys....

Regards

[yykalex]

whsaw,

read carefully the terms and conditions in your letter offer, check out their "flexibility" of your bank loan facilitiy,

- do u need to giv notice for extra payment?
- do there any restrictions/limit on extra payment?
- do u need to giv notice for redraw?
- do there any charges for extra payment more than certain %?
- do they charge u penalty for early settlement? or extra payment more than certain percentage?

IF either one of the above mentioned is answer "YES", then the loan facility is considered NOT FLEXI....

regard.

[whsaw]

Answers below i got from the loan officer:

The PBB package.
Is that a Progressive Payment option where u only serve the interest or you are required to start serving your installment?

If it is only serving the interest.. the first year 0% ain't nothing to shout about also....

Answer: 0% interest for the first year i.e. no interest is charged. 100% of whatever payment you make goes into the principle.

As far as i remember, PBB does seems to have a few charges stated in their T&C ... erm something like "disbursement fee of RM10 every 6 months"

Answer:

Charges I can find in the T&C:

Disbursement fee of RM10 every 6 months
RM 50 for each redraw from the surplus amount paid, min redraw RM 5k.
RM 12 for each reminder sent for any amount in excess or in arrears

- do u need to giv notice for extra payment?
Yes one month.
- do there any restrictions/limit on extra payment?
None.
- do u need to giv notice for redraw?
2 days before, written notice.
- do there any charges for extra payment more than certain %?
None.
- do they charge u penalty for early settlement? or extra payment more than certain percentage?
If settled within 5 years from full disbursement, early settlement fee of 3% will be imposed on the outstanding amount.


Any other banks / loans you guys can recommend?

[ed0gawa]

[MLD]

Dear whsaw,

Are you still open for other offers?

If yes, let me know, I can get a few slightly better offers.

Drop me an email or give me a call.

Thanks.

Regards.
_________________
To know more about AIA's Home Loan packages, Call 012-3272615 or email tzeyean.aia@gmail.com for more details.

[yykalex]

whsaw,

do u prefer lower rates or bank flexi facility?

if u prefer rates, i think only local bank "term loan" can offer u better rates, of course term loan is not flexi. (u need to giv notice & pay 50 for every redrawal).

if u prefer full flexi facility, try foreign bank. (no notice needed & no charges for each redrawal).

i would like to recommend HSBC.

Check out the other topic "FLEXI HOME LOAN".

[ed0gawa]

@whsaw

If you don't mind, probably you can drop me a mail at ed0gawa@gmail.com
I guess,i might have something to offer you too in terms of 'flexibility' that comes with low charges/maintenance fee

But i'll be frank with you that i can't offer 1st yr 0% and t/after of -2.0% ZEC package, unless my bank is having a promotion with that project.

[whsaw]