KCLau's Money Tips Forum

[KCLau]

I took up a mortgage loan from Ambank early 2008 for a commercial property.

The interest rate is BLR-1% for the whole tenure with flexi-package, which gives me a current account which is linked to my loan. The money in the account will be used to offset the interest incurs for that period of time.

What's your current package? Do you know any package that is worth to look into?

[vOlure]

I've just signed the LO from Al-Rajhi Bank to refinance my property from Maybank. Reason - Maybank's interest rate is way higher compared to the deal that I got from AlRajhi. I was getting BLR-1% from Maybank and now I'm getting BLR-1.8% from AlRajhi for the entire tenure. It's part of the 0 moving cost package, which simple means I dont have to pay a sen in this refinancing exercise. AlRajhi also does not have any lock-in period, meaning there is no penalty upon full settlement of loan. And there is even more reduction in my monthly payment to AlRajhi should I manage to find friends and family members to sign up with AlRajhi. Drop me a message if you are thinking of applying for home loan so I could refer you to the AlRajhi personnel.

[KCLau]

The Al-Rajhi's offer is islamic financing right?

[KCLau]

I just checked with HSBC's offer for refinancing:

All ZERO MOVING COST: (for loan over 200k, if you loan a lot more than 200k may negotiate better deal)
3 yrs lock in package
1st yr BLR - 1.65
2-3 yr BLR - 1.15
4-5 yrs BLR -1.75
Thereafter BLR-1.95


5 yrs lock in package
1st yr BLR - 1.9
2-3 yr BLR - 1.4
4-5 yrs BLR - 1.4
Thereafter BLR - 1.75

[vOlure]

Nope. It's not Islamic package. It's a conventional loan. There is an Islamic package of a fixed rate without BLR but higher than what I mentioned of course.

[vOlure]

I applied with AIA as well but decided not to take up the offer. Basically there are offering a fixed rate of 5.8% for the whole tenure with 5 yrs lock-in period. My decision is purely based on my anticipation of the OPR/BLR in the future. If you are worried too much on BLR, I suggest you take up on this one. Unfortunately, AIA has closed the offer about 2 wks ago, and now coming up with a new fixed rate of 5.85% for the whole tenure if I'm not mistaken.

[KCLau]

MERDEKA HOME LOAN PROMOTION by OCBC

Zero Moving Cost:

RM100,000 - <RM200,000 BLR-1.90%
RM200,000 - <RM400,000 BLR-2.00%
RM400,000 - <RM600,000 BLR-2.05%
RM600,000 and above BLR-2.10%

Ø The above rate is not applicable for Land & Construction financing under Fee By Bank package.

Ø All loans must be accepted not later than 31st August 2008. Strictly NO further extension on acceptance date.

[Angie]

I plan to refinance my house. So far i got 2 quotation from:
1. Hong Leong Bank
ZEC, BLR-2.75% fot the 1st year and BLR-1.75% for the whole tenure. Lock in period 5 years.
But they do have the facility of something like current account which they call it " ADVANCE PAYMENT" (below is the explanation from the BM of Hong Leong)

To put the money into 'Advance Payment'.The savings in interest is the same,as end of day,we will net off the outstanding principal loan amount against the advance payment amount before calculating the daily interest charged.However the benefits are :
a) You don't need to give any notice,ie as and when you have excess funds,you can put it in.
b) The money will not be credited directly into your principal loan outstanding,but parked next to it.
c) If there is any lapse in the installment payment,the installment due will be debited from the advance payment,thus you will not incur any late payment interest.
d) If you need to use any of the money in the advance payment,the following conditions must be complied :
i) You must give the bank 1 week's notice.
ii) Minimum withdrawal is RM5,000 and multiples of thousand.There is no maximum amount that can be withdrawn,as long as there is sufficient credit in the advance payment.
iii) There will be a fee of RM50 for each withdrawal.

2. EON Bank
ZEC, 1-6years BLR-1.6% and TA BLR-2.2%, Lock in period 6years.

Hope it will help.

Angie

[KCLau]

d) If you need to use any of the money in the advance payment,the following conditions must be complied :
i) You must give the bank 1 week's notice.
ii) Minimum withdrawal is RM5,000 and multiples of thousand.There is no maximum amount that can be withdrawn,as long as there is sufficient credit in the advance payment.
iii) There will be a fee of RM50 for each withdrawal.

Angie,

I do think that the RM50 fees charged for withdrawal is quite high. It is not so flexible since you need to inform the bank 1 week prior to withdraw, and also the minimum withdrawal of RM5,000.

Some banks doesn't impose these kinds of condition. At least HSBC doesn't. With their Homesmart account, you can withdraw and put in money anytime, just like a current account. No minimum required too. But I think the interest rate is higher. I am not sure if you are quoting the ZMC package?

[KCLau]

loan amount 200k and above
BLR - 1.8% whole tenure (with MRTA)
BLR - 1.75% whole tenure (without MRTA)