Comments on: Refinancing Home Loan: Save Mortgage Interest

By: KCLau

KCLau — Wed, 02 May 2012 18:04:27 +0000

at the beginning stage, your loan amount is higher so the interest paid is also higher

By: A

Wed, 02 May 2012 08:07:57 +0000

Hi KC,

Is it true that we pay more on the interest charges in the beginning of the loan tenure and pay lesser interest nearing to the end of the loan tenure?

Appreciate your advise.

By: Saviour-V

Saviour-V — Sun, 19 Feb 2012 10:48:39 +0000

I’m wondering if it’s possible to finance my car loan using the amortization model, KC.

Here’s my current scenario: RM 40,000 loan from Maybank, 3.88% per year, and 9 years to pay it off. So, according to the Future Value Simple Interest model:

(RM 40,000 X 3.88%)*9 years is RM 13,968 interest total, and when this is added to the RM 40,000 and divided by 108 (9 years X 12 monthly payments), my monthly payments (principal + interest) are RM 499.70, or RM 500 when rounded up.

But according to the amortization model, which I’ve calculated in Excel using PMT, my monthly payments are about RM 439.39 or so, which is a whole lot cheaper.

So, is it possible to use the amortization model for car loan financing, or am I stuck with the other model? I’d really like to reduce my expenses a bit.

By: jaafar mohamad

jaafar mohamad — Wed, 18 Jan 2012 14:48:51 +0000

KCLau,
Thank you for this very informative site. I am almost 59 years old. I already have a house in Nilai can could easily be sold at RM 600k. I intend to buy a old property at RM500K in KL and will require RM200K to renovate. Based on my age is it possible for me to obtain a mortgage for the house at Nilai and I would need about extra RM 100K to upgrade the house. I am still working and obtaining RM10K a month on long term contract. Please advice. Thank you

By: mickey

mickey — Wed, 29 Jun 2011 07:23:31 +0000

I’m facing the same problem as yours. What is yr outcome in your case currently?

By: Sue

Sue — Mon, 09 May 2011 09:12:19 +0000

They mention that the 5k admin is because they pay for me the valuation+ stamp duty + entry agreement while im paying for S&P. My loan is 140K. Possible to argue to lower the admin fees?

By: Sue

Sue — Mon, 09 May 2011 08:53:31 +0000

Hi,
I wanted to sell off my house and my loan is still in lock period with OCBC bank. Penalty is 3% and admin fee is RM5K. Is that such a high fees on admin?

By: SYW

SYW — Fri, 18 Mar 2011 07:53:18 +0000

Hi there, I think your problem is what exactly what I’m facing right now with HSBC Branch in JB,except mine is just too late for me to consider changing my loan. I deeply regret getting my loan from them as a lot of items are not informed or said but taken back,worse still my loan was process supposed by a account manager. First they value yr house this amt then after 3mths later they state that the house is not worth this amt even though I’ve already sign the Letter Of Offer! Then they state no need valuation fees then all of a sudden after everything is done someone came asking for valuation fees charges which was higher than most bank. Also if u sign for their offer of -BLR 2.2% throughout yr loan period, u MUST but MRTA from them,if not then u are not entitled for that BLR 2.2%. (This wasn’t told in the begining,only after u sign the LO). Also most their etc charges are higher, so I would advise to try out other banks which I know give better services & value for housing loan. Don’t be a fool like me get stuck with HSBC just because I was also their bank customer for more than 20years so thinking that probably will get better services. Hope this could be of help in yr choice of which bank.

By: poh lin

poh lin — Fri, 28 Jan 2011 05:45:51 +0000

KCLau
i face the same issues with HSBC bank, they are very rigid when comes to negotiation especially to their existing customers. i tried to ask HSBC to waive the service charge of RM10 every month but they refused, the bank is also charging RM1 monthly for sms service which i never rec’d after changing my mobile no, and have since asked them to cancel this unnecessary sms service but to my disappointment, i still receive the charge until today.

the offer HSBC is giving after my 5 yrs lock in period is not attractive at all BLR-1.75%, after appealing to the “Management”, they offered BLR-1.8% with another 5yr s lock in period. imagine how they are treating to their existing customers! when i called up Citibank, over the phone, they give a BLR-2.1% with lots of other atrractive promo, and the rate is still negotiable. in fact, if u put in some time and effort, you may be able to find out more better deals. So far, HSBC is the worst of all comparing the rates offered by other banks.

i m considering to change from hsbc to standard chartered now.

By: ezan

ezan — Fri, 07 Jan 2011 18:16:54 +0000

1st property to buy,price rm260k. im 29 years old. im applying home loan for a several bank such as cimb, bsn, hsbc.i need ur suggestion :
1.what i should consider before choosing the best home loan offer?
2.MRTA, how long the best coverage ratio for me?
3.free moving cost/ non free moving cost i hv to choose?
4.or any else that i have to know?
thanks

By: Lee

Lee — Fri, 04 Jun 2010 08:45:28 +0000

what are the spread margin of banks in malaysia from year 2000-2010????????????? help me!!1

By: Peter Lim

Peter Lim — Wed, 05 May 2010 14:10:45 +0000

I’ve written an article about such so called “Mortgage Reduction Company” on my website : http://peterlim80.blogspot.com/2010/05/company-that-offers-ways-to-reduce-your.html

I personally think you can do without those company.

By: KCLau

KCLau — Wed, 24 Feb 2010 08:35:20 +0000

Hi Lina,

When you sell a house, you need to settle the loan. In this case, the buyer will get the money to settle your housing loan. That’s known as early settlement as well. So the lock-in period still applies.

By: Lina

Lina — Tue, 23 Feb 2010 06:07:07 +0000

Hi KC,
Just wondering in case you know after refinancing, can we sell the house before exit the lock-in period? Is the lock-in period apply to selling house also?

By: yus

yus — Tue, 09 Feb 2010 08:45:12 +0000

Hye Kc.
plz give me ur mobile no for help me to refinance my house.

By: housing advice

housing advice — Mon, 08 Feb 2010 11:02:26 +0000

Refinancing your mortgage is not a bad idea if is viable to accomplish can still afford the repayments on the mortgage. Some people have jump into doing this without fully thinking of what needs to be done and just assumed it’s a way out of a bad mortgage to a good one. When refinancing talk to a financial advisor and find a mortgage company ‘will’ offer a better interest rate as you don’t want to charge more than previously. Good article.

By: KCLau

KCLau — Tue, 12 Jan 2010 09:44:06 +0000

7% is high. You can refinance it. Talk to a mortgage officer to find out the option.

By: Lee sai kay

Lee sai kay — Tue, 29 Dec 2009 08:44:41 +0000

Hi ,

P/S : Now my loan from 3 year is 7 %

By: Lee sai kay

Lee sai kay — Tue, 29 Dec 2009 08:43:33 +0000

I have my house loan with eonbank still in lock in ( just paid in 3 years only . actual in 5 years ).
Can i refinance this loan with another bank ( please suggest which bank ) . How much is this possible for Eon bank charge penaty ? If they not agree , which way i should do to less my loan , Because i want to make the new loan for another house

By: KCLau

KCLau — Mon, 19 Oct 2009 05:37:01 +0000

Hi Amakash,

There are offers of BLR-2.0 or more for the whole tenure at this moment.
1. Try appeal again to get the offer compatible to other bank
2. You can also talk to mortgage officer from other banks to see what is the offer they can provide.