Housing Loans
 

Any experts here in this community?
I made an excel spreadsheet with some loan packages offered by banks.
Need some input as to whether it's accurate and reflects how banks calculate interest and monthly repayments.

Rename the file attachment's extension to .rar
i.e: housingloan.zip -> housingloan.rar

Public Bank and Alliance bank have 0% interest plans for the first year for properties under construction.

oops, forgot to state that this is for completed homes. If you can furnish me with the details, I can update the spreadsheet :)

AIA Home Loan
 

:)

AIA Home Loan FIXED 6.25% up to 30 years or age 65 whichever earlier,

The monthly installment does not look correct. The monthly installment is fixed, ie every month I pay the same amount of money for my housing loan. It is the principal amount that is changing, ie in the first year for example, interest makes up the bulk of the monthly payment.

AM Finance and AM Bank are ONE but their housing loan terms are different.
 

Last week there was an announcement in the advertisment that the AM Bank and AM Finance has successfully merged and today it is known as AM Bank.

I was shown and asked by my neighbour who took a loan under AM Finance what it means to him. Upon examining his housing loan contract, it says that AM Finance interest rate is only BLR - 0.25% below AMFB Base Lending Rate for the whole period of tenure. Their BLR was at 7.95% when the contract was drawn up while the AM Bank BLR was at 6.95% (somehow the cost of funds for finance compnies generally is higher than the banks). It also says that the finance company has absolute discretion to vary the prescribed interest rate. According to the law of contract, the contractual terms cannot be changed under the new entity unless a new contract is signed. I called up the number provided in the advert for the answer and I was told that it means nothing to the borrower. AM Bank will now institute the new prescribed interest rate so as to maintain the status quo. This means that my neighbour will continue to pay the same housing loan repayment and the term is not getting any shorter. So I advised him to switch to another bank where their terms are more attractive.

Can AM Bank do that specifically to all those loans under AM Finance while the rest of the AM Bank customers are enjoying the BLR which is now 6.0%? Isn't their action discriminatory and go against the spirit of merger? Since they are a bank now, their sources of fund should be the same as the bank. What they are doing is also retrospective. Can this be done??

I am not sure if I am reading the info correctly. The loan, when signed, the BLR for AM Finance is at 7.95%, and this is a fixed rate loan.

If these are true, then the bank/finance firm/newly formed AMBank has the right to maintain the same BLR at 7.95%. If it is floating, then the BLR should be the same as what the new AMBank's BLR is.

And yes, the banks are all out to maintain their interest (or another way to say it is screw the customers)... I know, I just started working at a bank here in Malaysia... :o

I checked with my friend again and he said his is not a fixed rate. It is BLR + the margin spread and according to the bank, they can manipulate this spread to such an extend that the borrower is not going to have his cake and eat it. The question he is asking is he is not getting any benefits from the merger and he wonder why the bank is maintaining 2 sets of borrowers. If that is the case, he will just follow my advice to terminate the loan and borrow from any of the more agressive banks whose interest rates during the first 3 years are so attractive.

In this case, I think the bank is at the wrong. Maybe your friend should contact (or go to the website http://www.bankinginfo.com.my/) ABM and try to seek their advice. The bank should honor its contract, especially when it is stated specifically that the spread be whatever written on the contract.
(the annoying part is that some contract states that everything is subject to change at the discretion of the bank/firm. Hate those statement. In those cases, which is ur friend's case, I believe your friend is given the chance to terminate the loan without prejudice/penalty. Again, do ask the ABM or BNM before your friend does anything)

Given the current interest rate environment, I always suggest people to take fixed rate loan!!! 6.25% is so low, by historical measure.

what about rhb home loan? fixed 6.1%

It's not a fixed rate but BLR + 0.1%..

well first timer here.....
was a banker with an int bank for 2 years +...
learnt abit of things how the rich got richer....
at least for poor blokes like us ( how we can save!)

for housing loan....
look at ur contracts...
some banks binds u for 3 while some 5 years
change banks whenever the contracts expire....

bcoz whenever u change banks after ur contracts ends....
u get:
1. no transfer no legal fees (depends on individual banks)
2. promo interest rate starts all over again

example.
Acme bank: 1st year 0%, 2nd year BLR, 3-20 years BLR +2%

once contracts end on the fifth year change to another bank

Eeet bank: 1st year 0%, 2nd year BLR, 3-15 years BLR+ 3%

from the example...
at the end of 5th year at acme bank...
rather than continuing at BLR+ 2%
u change to Eeet bank n get 0% ...
thats a saving of 8% (theory)
lets say ur loan left is rm 100, 000
8% saving is RM 8000
:)

hope that helps

Housing Loan
 

I'm looking for a bank for my new second hand house. I'm looking at the home loan packages with daily rest interest, flexible repayment & to tight up with the overdraft facility. Any expert in home loan financing here can recommend which bank to go for? Thanks.

you might wanna learn how to buy property with ZERO down payment?
 

Dear All,

I've just come across a website built for Malaysian:

"Learn how to buy property with ZERO Downpayment"

visit:
http://malonlinebiz.bravehost.com/index.htm

Hoe this'll help

Housing loan
 

Bank negara has just raised OPR and hence BLR is now @ 6.75%.
You can get fixed rate home loan (for up to 30 years) from ING and it is daily rest too. The rate was 6.25% fixed for whole tenure before the hike. New rate will be available next week. If you are interested to know more, call me (winson 016-2332 484). From historical data from Bank negara, the average BLR for past 23 years was 8.75%

If you are looking for overdraft facility. Alliance bank does provide aggresive rate , flexible payment and overdraft facility, call Kym Lim (012-2392678) for more info.