I dont get that part when Peter said free money.. Lets say u got 100k cash, go loan 100k from bank with 4% interest for 10yrs. So u park all 100k inside the flexi loan, questions: 1. then the bank cant charge u interest anymore? 2. so u pay bck the 100k in 10yrs with 0 interest, then why on earth u wanto do that?? In the end u and bank get bck the 100k respectively. Both sides gained nothing, WHAT FOR? No free money as he said. Please help, i cant brain this haha.

​@@davidmok108 Hi, hope that I could help a little. First thing first, we'll have to understand that there are 2 accounts in Flexi loan: 1) Housing Loan Acc and 2) Prepayment acc that linked to Housing Loan. If you have cash on hand that you normally wouldn't use (like savings and FD), it is advisable to transfer all of these to Prepayment account. It is because the housing loan interest is about 4% while FD is about 3.6% only. No point earning 3.6% of FD while you can save 4% of your housing loan interest. Moreover, you able to cash out anytime just like a normal savings account. For FD, you have tenure so if you withdraw before your tenure ends, you lose interest, but for prepayment account, you save interest every single day because it is calculated in daily term. Plus, the more you put into this account, the more you have flexibility on your asking rental. For example if your installment is 2k, your neighbours too. Even if you rent much lower than your neighbours, most likely you still earn more than your neighbours who rent at normal market rental rate (as long as you put the right amount of money). So property game is kinda a 99% winning game for you in terms of rental if you play this right. Moreover, to answer your 2nd question. Why people who have cash still want to get loan from bank even if they already plan to put the exact amount of money in the prepayment account. With this, they are able to get free 10 years interest installments instead of striaghtaway putting 100k to buy out the property. 10 years is a long time leh.. with this method, they can cash out anytime and continue with normal interest if they got any financial issues in future, but if they don't, free 10 years interest installments leh. Some even sell in the 5th year, nett 100% earning even if the selling price is just RM1 higher than the original selling price. To summarise, there is no better way but to transfer these to the prepayment account as it is just another version of saving account (since even if you don't do this, you also put in your own savings account only) but able to save you tons of money and cut short your housing loan tenure, while able to withdraw anytime you want. This is why rich is getting richer, because with assets, you have more options, games and flexibility to gain more than others. Hope this helps, cheers.