Thanks for watching Adib!!

Glad it was helpful!! Thanks for watching=)

Thanks for watching Coco!!

Glad you enjoyed it Shane!!

Glad you enjoyed it Sherly! Thanks for watching=)

Thanks for watching Rrenn!!

Glad you liked it Izzad.

Glad to hear it Kenny=)

Let me work on it. Thanks for watching!!

:)

Thanks for watching!

But then why they have both then? What would be the difference?

@@iherng If I'm not mistaken, putting money in is the same for both, just that with full flexi it is easier to withdraw, for semi-flexi you need to go to the counter for withdrawal, and there will be additional charges.

My hlb semi flexi also offer the same. Can put in extra to reduce interest rate. But the hassle is when you want to withdraw, have to walk in and take few working days to process there is a term in the offer letter: Any excess payment received after deducting your instalment and any charges payable, is deemed as an “Advance Payment”. Advance Payment will not be considered as prepayment and thereafter will affect your loan outstanding balance for interest calculation purposes. Interest is calculated on the Eligible Outstanding Balance, which is the difference between the loan outstanding balance (inclusive of charges) (“Outstanding Balance”) and the Advance Payment or up to 30% of the Outstanding Balance, whichever is lower.

basically u can see straight away the principal reduced instantly

@@iherng Sean , me into Semi Flexi as well , when i check with Bank Harimau , they said it work similar to Full Flexi, like excess amount will definitely deduct your outstanding standing balance and in few months time and few years it improves your interest deduction as more percentage of payment will go to your principal.. The catch in semi is the advance payment in case of emergency you want to withdraw each withdrawal cost additional RM25. My bad i didnt ask for waiting period. For full flexi , with online banking you can withdraw anytime with no changes and transfer to your other saving accounts easily on the same day. But there are in one part these video @Rena said both full flexi and semi is almost the same. But than again 😂 further conversation of these video its explains semi flexi is just going to dump money in advance and will not improve anything.. So neither me I am confused state after listening to Rena am I doing silly mistake.. 😅😂.. But within 4-5 years i can really see the amount of interest is charged based on amout of outstanding cause there are some decent potion of advance payment. Semi Flexi vs Full Flexi. ? I think Sean , maybe another video please 😂❤️

Let me discuss with Rena yea. Great suggestion!!

Thanks for watching Jerry!!

yes good point here that not everyone is aware

Nice

Thanks for sharing Kevin!!

and how do you calculate that?

What's the difference between the normal HP rate of 3% VS effective rate of 5.6%? How to calculate effective rate?

Wow thanks Glenn=)

For Hire P loan, usually the bank will credit back the interest to u if u go for fully settlement. However, the bank will charge u one month interest as a “fee for early settlement”.

Do you mean a 1-3 years loan versus a 9 years loan?

@@iherng hi, would like to know your opinion if I have 50k in cash. Would it be better if I pay and clear a HP loan with 50k outstanding which is currently at its 5th year (originally 9year HP) Or put it into my housing loan (550k loan amount @ 35 years) to reduce the interest rate? I thought of clearing my HP loan to ease my total monthly payments and give me some peace of mind to only focus on a single loan. Thank you so much much for all your educational videos! It really help me gain the confidence in purchasing my first home ! Thanks to Rena as well for her teachings !

@@iherng if your HP is in early stage or 1-3 years from 7/9 years loan, the bank confirmed that we can get waiver of interest due to early settlement...as such no need to pay the whole amount balance calculated from total interest....

@@anap7268 Correct me if I am wrong, trying to do some comparison here with the examples that mentioned in the video. Let say our HP is 100k for 5 year tenure on 2% interest. If we settle the amount after 1st year, the total interest we will pay is 3,836.07 (as normally bank will charge extra when exit the HP earlier, but still better than letting the bank earn a full 10k interest). On the other hand, instead of settle the HP, we use the 100k settle part of the 500k loan, 35 years tenure on 3% interest after 1st year. And after the 5th year, we fully settle the home loan, i wonder how much are we actually save from the initial 100k early payment? 🤔

@@terencetcf for me I will still clear my HP since the basis of interest rate for HP is always higher than mortgage loan, but again everything back to the amount that you can save at that moment of time when you do the settlement....if the house is paying by other people says the tenant, and HP loan is not too burden for us, why not just enjoy keeping the cash right.....trust there is no definite answer without tabulating all the figures...

If there is black and white written for refund with no question asked, then they should refund. But many developers required one loan rejection letter from bank

@@jefftyt loan rejection letter will affect future loan application?

Let me ask her on the upcoming session!!

@@iherng thanks 😊

For example, for a loan of 100k for 12 months, with a interest of 5%, the monthly payment is 875. First month interest is 12/78 * 5000. RM769. First month only RM106 is used to reduce principal. Second month is 11/78, third 10/78 and so on. The denominator is the sum of all payment number (1+2+3…+12). The numerator starts with the total number of payment and reduces by 1 each payment. For another example, 3 year loan first month interest will be 36/666 * total interest. If you settle car loan early, your savings is the interest not paid. For example, if you settle after month 6 of a 12 month loan, you save 21/78 of the total interest.

But the total price is already calculated right? For eg 100k car, 3% interest. If it's 3 years, the total will be RM 109k. If it's 5 years, the total will be RM 115k. If it's 9 years, the total will be RM 127k. The total amount will then be divided into your monthly installment amount. So even by paying early, it's still the same total....right?? The allocation of interest to the principal by the bank would be different I understand. But the total amount paid by the customer is still the same isn't it?

@@iherng installment calculated based on total amount with interest. But there is still a breakdown of interest and principal on each payment.

The only purpose - in case you forgot to pay on time or on the trip to Mars, then it auto deduct from the advance payment

Most likely. Plus the 3.3% is on the difference you owe the bank which is on the RM 400k only. Great thinking Jason!! But I'm not too sure whether will you get such rates lah as that depends on your profile as well.

@@iherng thanks for replying :) appreciate your reply. One more question. If the SBR keep on rising, will there be any maximum or ceiling effective interest rate towards the loan?

Most likely that would be the full flexi loan account. Apparently I just found out some banks decided to waive the monthly charges.

Most likely but you'll need to inform the bank on paying more.

I don't think you can based on conventional loans. Maybe you can speak to your banker for better advice because I don't have the details to your details.

Thanks for watching!!

Either one will be fine. But agents would sometimes get referral fees from bankers if their customers were to engage their services. It may also be familiarity and certainty or work ethics to ensure the deal goes smoothly. For the home buyer, the cost is the same. Sometimes higher if you don’t have a personal familiar banker to assist.

@@iherng "Sometimes higher if you don’t have a personal familiar banker to assist." Please help to elaborate more. Thx

Depends on your preference and income method either you're a wage earner or business owner. Plus some banks are waiving the fees for full flexi dy.

She is the Head of Mortgage Department in Far Capital, a property investment consultant company:)

Hahahaha. Thanks for watching!

Erm, I don't see any benefits though. The more challenging point is how do you guarantee capital appreciation after 2 years? Usually it takes way longer.

Affin bank, signed last year Nov.

Do you mean using business to qualify for a housing loan?

@@iherng using a business as evidence to support your income, also having a FD to support it. for example a 1.2million home and then you wanna loan 80% while having about 600k in FD

Are you sure?

Well then this is a great documentation of the interest rate of that period. When it was 2.9% people still complain it was too high hahaha;)

In the future you will have Mike. Plus it's not in cash, but credit.

this one depends on the performance, if performance is bad, u may get low interest. if not mistake , the lowest is about 3+%. if u are lucky or know how, invest in stocks, way faster. i get 33% increase in just few month, i earn quite abit.. BUT, of course its abit risky with high capital

Sifu.....meaning if my loan repayment is 2250 i transfer 2250 to saving acc for auto deduct and also pay more than 2250 to loan account for reducing the interest?

Or I can straight pay 2250 X2=4500 to loan account

All this without needing walk in PBank to tell them I want to pay extra every month. What about one lump sump of 20k end of the year.....need to let them know?

Thanks for watching!!