Asking for your guys opinion

The above 2 bank offer me the package as below:
Public: BLR -2.15% (BLR now: 6.3%) so interest rate is 4.15%
EON : FDR +1.15% (FDR now: 3.0%) so interest rate is 4.15% too.

As compare the EON bank FDR rate increament for this year with BLR. BLR increased in May & July for 0.25% each time (total .5%), but FDR only increase 0.1% & 0.15% (total 0.25). The EON bank officer saying that normally the FDR will increase slower than BLR.

But what i'm concern is the BLR still guilded by the Bank Negara, FDR is mostly the bank own strategy, maybe after EON bank getting certain quota of this Bank loan FDR+, then it may start increase the FDR %. is that possible??

Hope your all can share your thought here. I'm thinking to finish the loan within 10-12 years.

Thanks.

MS

Anything is possible as far as the banks are concerned as long as you dont have it in writing..that is the bottom line..Using the FDR route is fairly new here in Malaysia so there is no history so to speak to fall back on...usually the BLR will always be higher than the FD rate (this is for sure will not change otherwise banks tutup lah). Talk to the Eon bank officer about your concerns and see if they are able to alleviate your concerns in writing! You are taking it for such a long tenure so better be a little cautious.

Anyway, as far as I know FDR is not fixed indefinitely..

Jess

Thanks for the reply Jess.

If you are the one, which package will you choose? Public or EON. Any reason for you selection?

Thanks

for me personally i have taken a bank loan with FDR rate but i intend to redeem after 3 years. If i were to take a long term loan I would rather take the BLR route as essentially I dont want to be at the mercy of the banks (so to speak) for such an extended period..having said that you need to decide what suits you best - if in doubt ask the bank loan officer and if you are not convinced, go with what you know for sure. Ask the officer - tell me what are the advantages and disadvantages of this loan. you go to Public bank and ask them to tell you what are the disadvantages of the loan that eon bank is offering you and you do the same with the other bank, and do a comparison. hope this helps..

Good luck..

jess

OCBC BLr -2.3%


FDR better.
If FD rate go up to 5%... every storming in to save money d... why invest in bond?

Hi Miller,

PBB shud be offer blr-2.2%(above rm150k) d currently how come miller u still get -2.15%?


Regards,
Commercial and Housing Loans Senior Sales and Marketing Executive
Lee

We just approached EON bank for our housing loan and they offer us with 2 packages:
1) BLR - 2.3%
2) FDR + 1%

With today's BLR of 6.3% and FDR of 3%, both rate above is breakeven now. However moving forward which package will be better in future? Can we trust what the EON bank officer said that FDR increament will be slower than BLR?

Hi Miller

The decision is all depend on your intention of getting the property? Mainly i suggest EON as the package (FDR) don't have lock in period and penalty.

and 2nd reason is, we dont forsee the FD rate will increase very much for the years to come.

Should any of you need further information pertaining to any loan matter do drop my a line!

Cheers,
Martin Lau
D'Venture FlexiHome

Dear All,

May I know is all these BLR - (minus) are for how long, whole tenure?

Ya, rate stated here is whole tenure for 30yrs. Some bank may offer differently, you have to check before making decision.

Dear all experts,

Refer to Morgage Banker's quote "If more than 3yrs, u can write in a request to reduce int rate from ur existing bank."

My house has obtained OC on Jan'10 and almost service loan for 3 years. May I know what if I do not need cash from refinance, what other benefit I can get from refinance. If I just asked for interest rate reduction (is this called refinancing too?), we my banker agree to. Yet, I am locked for 5 years, penalty will be 3% on redemption sum.

Please help me to reduce interest charged for I can feel the impact of great inflation while salary is fix all these years. Appreciate your advice.


BR
AL Tan

Hi AL tan,

1st you have attempt to any other bank to get the quote for refinancing now, becuase u didn't mention what is the rate you signed before & pay now, not really sure whehter it worth to refinance or not.

My opinion, because u locked for 5 yrs, ur existing bank may not entertain u if u apply for rate reduction or rate review. Don't forget that if u do the refinancing now with other bank now, u need to pay the penalty 3% to ur exisitng bank & also lawyer fee for ur new refinancing loan. U may do the calculation whether worth to refinance or not.

Hope it can help u.

AL Tan,

As what Miller suggest the best is identify your package you've took few year back (by referring to your bank offer letter). With the interest you are paying compare with the interest of the best offer you can obtained from banks now. Calculate you penalty and see the differences???

i.e. if your loan took 3 years ago most likely your rate is BLR + ?% (instead of minus). Do refer to your offer letter for more infor.

If you're concern about the fluctuation of the BLR, why not Consider a Fixed Rate? Should you need more information do drop me a message!

Martin
Dventure FlexiHome

just want to know that nowaday the BLR get increase since last july. but my loan approved last april.

and the interest rate now is -2.2 to -2.xxx but my one is -1.8.

i can see the different is a lot. and any suggestion and opinion from you.

what can i do to get my interest rate reduce???

Tee,

U can try to appeal to ur existing bank, but normally will turn down due to ur lock in period still long. As your loan just approved since April, u may need to wait 3-5yrs until ur lock in period is over.

As the rate now is around BLR-2.3, if you do the refinance with other bank, your penalty fee will much more than ur saving.

Hi Expert,

I am planning to apply for housing loan to buy my first house. However, I have a join applicant housing loan with my sister which started last year but the house is under her name alone. If i wanna apply the loan now, is it easy for me to get approval? Besides that, could i manage to obtain more than 90% of the cost which is under 100k?
Hoping to get some suggestion from you all. thanx

Hi Miller and Martin,

I appreciated on your reply. In fact I want to know what can I do to increase my net worth from this property investment instead of just some saving of interest rate by refinancing.

My loan 3 years back is BLR-2.0% whole tenure. Its locked for 5 years, penalty 3% of redemption sum or Rm5,000 whichever is greater.

My financial margin is quite low, 75k out of 330k. ( I just play safe because I can settle with my EPF at any unforseen cicumstances arise in future) Recently the Ph II launched with lowest price of 450k. I was thinking when Ph II has their OC obtained in another 2 years time (2013) by that time my loan is approaching 5 years too. I believe by that time the Ph II price will have a jump, so will my Ph 1, right? 50m distance in the same area. Forgot to tell you, just right beside my house, they are planning to build bungalow v. soon, happy that I can pay much lower price compared to my neighbor next door.

Earlier I owned a condo which earned me only a 3% rental yield and the condo price (bought in 1998 to 2007) was kind of stagnant unlike landed property so I sold it when share market booming and rumours said 2008 was another recession, which was already self-prophecied.

When I bought this Ph 1 unit I was thinking of settle the loan by end of 5 years. But now, I think I want to refinance and take the extra money to buy a potential rental yield condo. for passive income. And leave this landed property to create long long term capital appreciation. What do you think? But landed property can't give attractive rental, so we make it our family's holiday villa. Yet, we are doing some value adding renovation like attic, extension for extra upstair area, open wet kitchen... in years down the road.

Is this a good plan or there are many others better suggestions from you experts/gentlemen. Much appreciated for sharing your advice. Thanks a lot.

AL Tan

thank you very much , i had checked with my banker. yes they are saying that i may need to wait 3 more years, so i can apply for readjustment interest rate. anyway too bad that i apply loan before that..heheh

AL Tan wrote:
Hi Miller and Martin,

My financial margin is quite low, 75k out of 330k. ( I just play safe because I can settle with my EPF at any unforseen cicumstances arise in future)

Did income tax come after you to explain how you got 330-75 cash ?

No, I suppose as long as a minimum loan is taken.... of course must have right income earned.
I recall my very first time in 1989 was cash purchase, yes Inland Revenue came after me. That was my first bonus after working for few months. Of course, I managed to get some other investors to join me. In fact I bought 2 units, one sold under construction, it was taxed. A long list to be filled up. I had no problem at all, my accounts is right and clear to be shown.

Hi everyone,

I m Alan Ang from Publicbank HQ. Anything regarding about loan pls do not hesitate to give me a call.

Asking for your guys opinion

The above 2 bank offer me the package as below:
Public: BLR -2.3% (BLR now: 6.3%) so interest rate is 4.0%
EON : FDR +1.0% (FDR now: 3.0%) so interest rate is 4.0% too.

The EON Bank had offer me FDR + 1.0% with no lock in period, but i heart a lot of other banker say HL takeover EON Bank and EON Bank will change name soon and if really happen, title will be touch and we need to pay the lawyer fees.

Can anyone tell me is tat true? they will touch our title and the lawyer fees we hav to bear?