Wednesday, October 8, 2014

CIMB HomeFlexi (Malaysia Housing Loan)

I get to know this CIMB HomeFlexi housing loan recently.

This is the general features of HomeFlexi published at CIMB website.

Just a few notes:
(1) There is a monthly service charge of RM 10 only. You can easily earn this back with the interest you have saved.

(2) You can park your money at the current account (just like saving account, NOT housing loan account) and save the interest. You can withdraw the money anytime without any service fees. Of course, your loan interest amount will be added back.

(3) Exactly how much do you save as compare to put the money in the fix deposit? Actually, it is just a mere saving of 1+%. I have one example below.

There are three scenarios here:
(1) You place RM 50,000 into the current account
(2) You place RM 100,000 into the current account
(2) You place RM 150,000 into the current account

Assuming, your property is completed and the full monthly installment kicks in.

When you make the monthly instalment of RM 3,461.25, RM 2,730.08 will go into the interest portion (that's the first month).

Hence, if you have placed RM 50,000 into the current account, the interest for that month actually reduced to RM 2,544.66. You are still paying RM 3,461.25, but your monthly principal actually increased (because you reduce the interest) , so you are actually paying RM 916.59 for monthly principal instead of RM 731.28 (this figure is for the first month as an example).

Same goes for RM 100,000, your monthly interest reduced from RM 2,730.08 to RM 2,359.24.

As for RM 150,000, your monthly interest reduced from RM 2,730.08 to RM 2173.83.

Assume you place this RM 50,000 , RM100,000 and RM150,000 respectively into Malaysia fix deposit for 24 months and the interest rate say 3.3%, you will find out, you rather put the money back to the current account.

You can actually save additional 1.1% P.A. Hence, you can actually get 4.4% interest instead of 3.3% from the fix deposit. The saving is nothing fantastic but you have the good saving with great flexibility.

As for the new launch residential purchase, your first 3 years is progressive payment. Hence, if you put an amount of RM 150,000 , your first year housing loan might be 0% interest. That is pretty cool eh ?

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