Comments on: Beware of the Lock-in Period of your Home Loan Offer Letter

By: KCLau

KCLau — Thu, 31 Mar 2011 07:16:12 +0000

I suggest that you discuss with the buyer to sort things out. If they are genuine buyers, why not make the deal easier?

By: Suthageran

Suthageran — Thu, 31 Mar 2011 00:45:07 +0000

Hi, Kc

Just recently we( myself& my wife) asked house agent to sell our house. later the agent got us a buyer, we sign an letter saying that we will sell the house to the buyer.They must sign S&P within 14 days working days. But they fail to sign, so we got the right to forfeit the deposit that they pay to us. But now the buyer blameing us that we delay the S&P. Pls advise

By: KCLau

KCLau — Fri, 07 May 2010 09:37:13 +0000

Hi Alfie,

I just called up a lawyer in Penang. He said that it can be done.
It can be done in Penang. But we are not sure if it is the same situation in other states.

By: alfie goh

alfie goh — Wed, 05 May 2010 08:41:42 +0000

KC,
My wife is a bumi and I am a Chinese, if my wife purchase a bumi lot property (5% discount for the bumi lot) under her name, can she transfer the bumi lot to me as love of affection? Is the property still under the bumi lot after the transfer to a non bumi person?

By: KCLau

KCLau — Tue, 04 May 2010 06:58:45 +0000

I finance my properties from different banks, due to the offer at the time of financing.
I think it depends on your need and also the package offered by banks, and also the timing.

By: alfie goh

alfie goh — Sat, 01 May 2010 09:33:40 +0000

KC Lau,
What is your opinion if you need to finance two apartments, is it good to go for one bank to finance the two apartments or two different banks to finance two different apartments.

By: Jude

Jude — Wed, 10 Feb 2010 05:12:08 +0000

KC,I need your opinion and insight. I applied for home loan- and now left with the choice between CIMB and Public Bank. The details are as follow:

House price=rm190k(apartment-completed-individual)
Loan amount is rm171k.

CIMB
-CONVENTIONAL
-90% LOAN
-35 YEARS REPAYMENT PERIOD
-monthly =~rm790(INCLUDE MRTA BUT I FORGOT TO ASK INSURANCE COVER HOW MANY YRS)
-BLR – 1.7
-5 YRS LOCK-IN PERIOD
-AP REDUCE ON PRINCIPLE

PUBLIC BANK
-90% LOAN
-37 YEARS REPAYMENT PERIOD
MONTHLY=RM768(+ INSURANCE THAT COVER FOR 30 YRS OF REPAYMENT PERIOD)
- BLR – 1.8
- AP REDUCE ON PRINCIPLE.

Please help – my main concern now is their T&C and how good their services will be..
Thank you very much..

By: KCLau

KCLau — Mon, 26 Oct 2009 04:02:18 +0000

HI Hani,

You can ask the bank to restructure your loan.
If they don’t want to do that, you can always refinance to other bank.

By: Hani

Hani — Wed, 21 Oct 2009 04:41:10 +0000

Hi KC

Great info for finance dummy like me. Need advice on how to consolidate all my debts: cc + homeloan. Hv been trying to settle all cc’s and had requested the bank to reduce monthly instalment instead of reducing the loan tenure. FYI, I bought a house few yrs back with a loan approved for 14 yrs repayment. The monthly repayment is too steep for me and after reducing the loan to almost half fr EPF withdrawal (after 3 yrs ), the bank reduced the number of years instead of the monthly installment amount as I hoped. Reason being of affordability & age factor. Question is, how come when the loan was approved, it was for 14 yrs repayment, but after rescheduling, the repayment period is not maintained (balance of years approved previously) but the repayment amount is maintained? I was trying to settle car loan + cc’s by trying to reduce the monthly home loan. I wd really appreciate any advice. Thank you.

By: KCLau

KCLau — Thu, 06 Aug 2009 04:14:45 +0000

@Visva,

Just try several banks and get the one you are comfortable with. There are package with 3 years lock-in period nowadays.

By: Visva

Visva — Mon, 27 Jul 2009 14:56:03 +0000

Hi KC,

I finished reading your book.Found it very useful.BTW,I try to nego for theLock-in period
with most of the ban ks and they dont seems to agree.How cam i go about?|
TQ

By: Chuan

Chuan — Fri, 19 Jun 2009 06:28:45 +0000

Hi,

I understand that the penalty for the early settlement for the Islamic home loan package is based on Cost of Fund (COF). How this works? Is it based on the highest difference of the COF & our rate? Is the difference is calculated in yearly basis or just once? Thanks.

By: Shasi Kala

Shasi Kala — Wed, 06 May 2009 03:28:08 +0000

Hi KC,

Such a great website! Keep it up!

By: Nasrul Jan

Nasrul Jan — Fri, 29 Aug 2008 13:08:53 +0000

Hi KC,
Good website and information on money. I planned to refinance my house which is still pending for OC. Current rate is very high BLR+0.5%.

Details:

Loan amount: RM 157000
Period: 30 year
1st year: RM623/month
2nd year: RM912/month
3rd – 30 years: BLR + 0.5%

1st loan payment: May’2007
Lock in period : 5 years @ 3%

Need your advise is it worth to refinance my loan with new bank that offer BLR- 1.5% (with 95% refinancing) and how much penalty that I need to pay and how much I need to top up.

Your advice is very much appreciated..

Regards
Nasrul

By: KCLau

KCLau — Thu, 10 Apr 2008 06:05:55 +0000

@Zaid,

Welcome to this website. Try the new forum for more information : forum.kclau.com

By: zaid

zaid — Wed, 09 Apr 2008 08:36:18 +0000

yes, thank you very much. those bank execs won’t tell these things.

By: Jalte

Jalte — Tue, 18 Dec 2007 03:52:22 +0000

Thanks for the info. Very informative.