Access to the entire mortgage market.We will get back to you within 24 hours.
( Guaranteed Reply!!! )
Best Mortgage : ARE YOU LOOKING FOR HOME LOAN?
Sun, 25th July 2010
Are you buying the property as an investment? Or it is meant to be for occupation?
If you’re an investor with a short term horizon, look out for home-loan packages that allow you to pay interest only for the first five years. You can also opt for a step up loan (where the interest rates is lower at the beginning but increases gradually) or choose a loan with a short or no lock-in period. “ A shorter lock-in period matters to those who bought properties for investment only.
Some features may appeal to those who are owner-occupiers. For example, a step up-loan would be suitable would be suitable for newlyweds or those who have just started working. The instalment payment for the first few years are low, and it will be increased gradually. This wouldn’t be so taxing on their finances in the early years, plus they get to own their property earlier.
Refinancing anyone?
The whole objective of refinancing is to save money from lower interest rates. Be cautions against focusing solely on interest rates, though “ Sometimes, the cheapest rate come with lots of terms and conditions, like a long lock-in period. Also, if you don’t pay for at least consecutive months, the good rates will no longer apply. Look out for hidden charges and read the fine print carefully. Usually those who need a home loan of below RM300,000 would usually opt for the best interest rates, as opposed to flexi loans. This is because they don’t have additional savings to dump into the loan. They want to enjoy savings upfront.
Fixed rate, floating rate or hybrid?
When interest rates skyrocketed to double digits during 1997/98 Asian financial crisis, many house buyers who opted for BLR-pegged home loans struggled greatly in repaying their loans. A fixed rate home loan suits customers who are less tolerant of interest-rate fluctuation. They allow customers to lock in and prepare a fixed amount for the whole tenure. It helps them to plan their finances better.
Some people cannot live without certainty and they prefer to be disciplined with their money. They know that if they have access to money, they may not be able to control themselves. Some of our clients tell us that they don’t like debts. They want to know they’ve paid a certain amount of money every month, which moves them closer to their goal.
However, these loan takes will not benefit from any dips in the BLR. Fixed rates loans are less popular these days with an increasing number of people preferring floating rates instead.
Then there are hybrid loan, where the package will include a combination of fixed and floating rates. In hybrid loan, the interest rate is fixed for a certain number of years; Thereafter , it will be based on the BLR. For instances, from year one to year three, the interest rates may be fixed at 4.40%, Thereafter, the interest rate will be at BLR – 1.90% . Its popularity depends on customers’ perception of the economic conditions in the future. This is also known as hedging.
Do you need more information about home loan products?
Filled Under:
Latest Article/News, Uncategorized
Latest Article/News
Author :Melissa Lee
Gone are the good old days…
Today, we have to face and shoulder the hard facts that nationwide our sugar had increased 25 cents per kilogramme (kg), petrol and diesel increased 5 cents per litre and cooking gas (LPG) increased 10 cents. This means all our daily necessities had increased. As we all know sugar is our required ingredient in various food preparation. It also mean, your teh tarik, cakes, cendol, satay, drinks will be affected. Definitely, prices to all these food will be increased too by the Kedai Mamak, coffee-shops and restaurants, just to name a few.
Cooking gas increase will also affect prices in major food outlets as most restaurants and hawker operators are using cooking gas to cook their food.
I am relief that petrol was not increase tremendously like previously. 5 cents, I think is affordable and acceptable to most of us.
Two or three days ago, most banks base lending rates had increased from 6.05% to 6.30%. When base lending rates increased, it means our housing loan installment increase as well. Rationally, our expenses will be increased too. When we receive our monthly salary, the first thing we will settle our housing loan installment or any other rentals. Then follow by food expenses. Because, we need food to survive.
Maybe now, it’s time to save and cut back some expenditure. I do believe every dark cloud has a silver lining.
Sugar subsidy cut is a good sign. It will help to promote a healthier lifestyle. Less sugar consumption means less diabetics and less sugar related diseases and sickness.14.9% of Malaysians were diabetics and this was high compared to just 8% of the population in 1996. Even in China, only about 9% of its population suffered from diabetes. This is very serious and alarming. Therefore, everyone needs to start cutting back their sugar consumption especially food operators who also have responsibility to the public.
For petrol and diesel, maybe it’s high time everyone has to think seriously about car pooling and taking alternative transportation such as Putra LRT, Star LRT, monorail and commuter. Because, these can reduce traffic congestion and less smoke emission. Resulting in a cleaner and better environment.
The hike in base lending rates means fixed deposit (FD) rates will increase too. So, now is the time most of us can deposit our money in the banks in order to gain better interest.
From my personal view, I’m hoping that Base Lending Rates increased can influence rental increment. If rental increased is affected then it may help to lighten some of our financial burdens as investors.
However, increased rental collected by wage-earner may augment their meager monthly wage-earned. For tenant, this will be a burden to them.
So, is it right to increase rental when installment increase? I will let all my level-headed viewers to think and decide for themselves.
Lastly, price increasing in cooking gas…. It’s hard for me to think why it is so positive to increase in our cooking gas? I think the only thing will be, to encourage people to use electric cooking hob. This may help to reduce the possibility of cooking gas exploded in our home. Eh?
Electrical appliances have their short-comings too. They may cause short-circuit and set houses on fire. In addition, electricity is more expensive than gas.
Recollecting my visit to a booth selling electric cooking hob, they had shown me some articles about how cooking gas can easily explode and it’s like a time bomb in our house. It just need to be activated and an explosion will occur.
Or maybe another reason will be, since the price of food will increase in food-outlets. The government would like to encourage home cooking. As we know the healthiest and cleanest food is cooking at home.
So, what comes next to increase? Electricity? Water?
I do believe we are strong, well balanced and level- headed Malaysian and are able to survive and come out of it.
With the various subsidies cut enforcement on-slaught, we have to be frugal and learn to tighten our belts accordingly. Hopefully, with wise adjustments and correct steps taken by our administration, we as “ One Malaysia” would not like to see our beloved fellow “Rakyat” suffer untold miseries and hardship.
In conclusion, we would not want to be the next Greece.
Malaysia Boleh !
KWSP, Latest Article/News
Information Related To Withdrawals
Your EPF savings are a mandatory savings which have been enforced to help you during your retirement. This means that you may not withdraw your EPF savings until you retire. The EPF has provided various withdrawal facilities for you which can be divided into Pre-Retirement Withdrawal and Retirement Withdrawal.Pre-Retirement Withdrawal, on the one hand, allows you to withdraw a certain amount from your savings before you reach the retirement age. This is to help you make the necessary preparations for your retirement.
Retirement Withdrawal, on the other hand, allows you to withdraw all of your savings upon reaching your retirement age.
Apart from the withdrawal facilities aforementioned, the EPF too allows its members to make investment withdrawal when you have fulfilled the requirements
Withdrawal to Purchase a House
PURPOSE
- This withdrawal allows you to utilize your savings from Account 2 to partially finance your purchase of a house individually OR jointly with your spouse or close family members namely parents or siblings.
- Buying of a house with another individual who has no kinship is allowed provided that the other individual is a buyer and borrower.
- This withdrawal allows you to buy a house from a developer or an individual or through a public auction.
- EPF Withdrawal to purchase a second house is allowed after the first house purchased utilizing EPF has been sold or disposal of ownership of property has taken place. Disposal of ownership refers to ‘loss of ownership of the first house owned by you either due to auction, surrender of property by court order, transfer of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase’.
APPLICATION ELIGIBILITY
- (i) A Malaysian Citizen; OR
(ii) A Malaysian Citizen who has made Leaving The Country Withdrawal before 1 August 1995 and has opted to re-contribute to the EPF; OR
(iii) A Non-Malaysian Citizen who:
-
- Has became an EPF before 1 August 1998, OR
- Has obtained a Permanent Resident (PR) status.
- You have not reached the age 55 at the time the EPF receives your application; AND
- You have a minimum savings balance of RM500.00 in your Account 2.
Terms Of Withdrawal
You are eligible to apply if you:1. Buy a residential house (type: bungalow / terrace / semi-detached / condominium / apartment / studio apartment / service apartment / townhouse) or a shop lot with residential unit or a small office home office (SOHO) unit.
2. The purchase of the house is financed by:
(i) Housing loan from any of the following institutions:
• Financial Institutions licensed under the Banking and Financial Institutions Act 1989 (BAFIA);
• Central / State government or any other government financial agencies;
• Member’s employers;
• Cooperatives / Cooperative Companies with license (approved by Cooperative Development Department, Ministry of Entrepreneur and Co-operative Development)
• Licensed insurance companies as approved by the Central Bank of Malaysia;
• Loan providers as allowed by the EPF; OR
(ii) Cash.
3. The date of the Sale and Purchase agreement is not more than three (3) years at the time your application is received by the EPF.
4. You have never made a Housing Withdrawal; OR you have made a withdrawal to purchase your first house and have sold the house or disposal of ownership has taken place and now you intend to build your second house. Proof of sale / disposal of ownership of the first house must be submitted to the EPF.
5. You want to buy a house which has been acquired from a rental with a view of purchase agreement from a party authorised by the EPF.
6. You have bought a land and built a house on the same land simultaneously (dates of the agreement to purchase the land and the agreement to construct the house must be within 6 months).
You are not eligible to apply if you:
• Buy a land or a house lot only.
• Renovate, repair or do additional work to the existing house..
• Property ownership is not via sale & purchase transaction.
• Have taken an overdraft loan.
• Buy a third house.
• Buy a house in a foreign country.
Withdrawal Eligibility
The amount that you can withdraw is as follows:
HOUSE PURCHASE FROM AN INDIVIDUAL
JOINT PURCHASE WITH SPOUSE OR OTHER INDIVIDUAL
The difference between the house price and the loan amount plus an additional 10% of the house priceOR
All your savings in Account 2
(Whichever is lower but not less than RM500.00)
The difference between the house price and the loan amount plus an additional 10% of the house priceOR
All the savings in each purchaser’s Account 2 subject to maximum amount eligible for withdrawal
(Whichever is lower but not less than RM500.00)
100% HOUSING LOAN
CASH PURCHASE
10% of the house priceOR
All your savings in Account 2
(Whichever is lower but not less than RM500.00)
Price of the house with an additional 10% of the house priceOR
All your savings in Account 2
(Whichever is lower but not less than RM500.00)
- You may choose to decide on the amount to withdraw from your Account 2, subject to the maximum amount eligible by filling in the desired amount in the housing withdrawal Form 9C (AHL).
- You may have made a housing withdrawal before but have cancelled the purchase of the house and now you wish to make this withdrawal to purchase a house. In this situation, the amount withdrawn need not be returned to the EPF. The earlier withdrawn amount will be deducted from the current eligible amount subject to the balance eligible (if any).
Important Notice
Amount Withdrawn Not To Be Utilized For Other PurposesAn amount withdrawn shall be utilized solely for the purpose for which the withdrawal was authorized. Where all of the amount withdrawn or any part of the amount is not utilized for the purpose for which such withdrawal was authorized, the member shall return all the amount or the part which is not utilized to the EPF within six months from the date of withdrawal. Any member who contravenes this requirement shall be guilty of an offence.
Submission Of False Application
Any application received and found to contain false information or forged documents will be deemed to have committed an offence under Section 59 of the EPF Act and if found guilty shall be liable to imprisonment for a term not exceeding three years or to a fine not exceeding ten thousand ringgit or to both.
FAQ Withdrawal to Purchase a House
- What are the requirements for Withdrawal To Purchase A House?
Members must be:
- Malaysian citizens; OR
- Non-Malaysian citizens who have obtained Permanent Resident (PR) status; OR
- Malaysian Citizens who have made Leaving The Country Withdrawal before 1 August 1995 and have opted to re-contribute to the EPF; OR
- Non-Malaysian citizens who have became members before 1 August 1998;
- What is the amount entitlement under Withdrawal To Purchase A House?
Members can withdraw their savings according to the following, whichever is lower;
a) Individual Purchase – The difference between the house price and the loan amount plus an additional 10% of the house price; OR
All the savings in the applicants’ Account 2 subject to maximum amount eligible for withdrawal (whichever is lower)
b) Joint Purchase With Spouse, Family Member or Other Individuals
c) For housing loan of 100% – 10% from the cost of building the house; OR All savings in Account 2 (whichever is lower)
d) Cash purchase – house price with an additional 10% from the cost of building the house; OR All savings in Account 2 (whichever is lower)
- How is the payment made?
The payment for withdrawal will be credited directly to the bank account with the following conditions:
- Members own a bank account with the EPF elected panel banks.
- Members’ bank accounts are still active, and
- Members’ bank accounts types are individual savings/current accounts OR Individual Joint Account for withdrawal amount of more than RM100,000.00
- How do I submit the applications?
Applications can be submitted at any EPF Offices nearby, either at the counters or by post.
Enquiry
Should you have any enquiry, or require additional information regarding this withdrawal, kindly contact:· Any EPF Office nearest to you;
· The EPF Call Management Centre (CMC) at: 03-8922 6000
· Online Feedback: Enquiry
Please quote your EPF membership number or your Identity Card number and the type of withdrawal that you have applied for when you contact the EPF. You are encouraged to contact the EPF directly for assistance and advice. You may also read further in this website to obtain more information regarding all available EPF withdrawals and general guide to members.
source: www.kwsp.gov.my
Base Lending Rates (BLR), Latest Article/News
Dear All,
This is new Malaysia Base Lending Rates.
Malaysia Banking Institutions’ Base Lending Rate (BLR)
No.
Banking Institution
With Effect From
BLR (% p.a.)
1
Affin Bank Berhad
13/07/2010
6.30
2
Alliance Bank Malaysia Berhad
13/07/2010
6.30
3
AmBank (M) Berhad
13/07/2010
6.30
4
Bangkok Bank Berhad
14/07/2010
6.30
5
Bank of America Malaysia Berhad
13/07/2010
6.30
6
Bank of China (Malaysia) Berhad
14/07/2010
6.30
7
Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad
19/05/2010
5.75
8
CIMB Bank Berhad
13/07/2010
6.30
9
Citibank Berhad
13/07/2010
6.30
10
Deutsche Bank (Malaysia) Berhad
21/05/2010
6.05
11
EON Bank Berhad
14/07/2010
6.30
12
Hong Leong Bank Berhad
14/07/2010
6.30
13
HSBC Bank Malaysia Berhad
13/07/2010
6.30
14
J.P. Morgan Chase Bank Berhad
24/05/2010
5.95
15
Malayan Banking Berhad
13/07/2010
6.30
16
OCBC Bank (Malaysia) Berhad
13/07/2010
6.30
17
Public Bank Berhad
13/07/2010
6.30
18
RHB Bank Berhad
13/07/2010
6.30
19
Standard Chartered Bank Malaysia Berhad
13/07/2010
6.30
20
The Bank of Nova Scotia Berhad
14/07/2010
6.30
21
The Royal Bank of Scotland Berhad
19/05/2010
5.75
22
United Overseas Bank (Malaysia) Berhad
13/07/2010
6.30
Source: www.bankinginfo.com.my
Latest Article/News, Stamp Duty & Lawyer Fees
We did post an article about Property Gain Tax before, however, we would like to summarized the new RPGT features in a simplest way for our viewer.
Now, that issue on real property gain tax (RPGT) had resolve. Therefore, it is our chances now to take control and understand more on the situation. Let’s us clear the air for everybody on the RPGT issue. This will contribute to smoother buying and selling process in Malaysia.
The Budget 2010 presented last year October was a shocked to all of us. After few years of suspension, the RPGT was restored with a flat rates 5% for all disposals of real property, regardless of their holding period and their category (either individual or company).
The good news, government responded to the tremendously ensuing feedback and finally came up with some changes and exemptions.
The summary as follows:
1) ONLY CHARGE 5% FLAT RATE
From 1st January 2010, RPGT is impose at 5% flat rates for gains arising from property disposal. This is only applicable for property sold in Malaysia within 5 years of acquisition.
After this law put in place the actual calculation of RPGT can be very tedious and complicated. Please refer No. 5 for the simple example and calculation on RPGT.
2) ONE RATES FOR ALL
The flat rate of 5% is applicable to all persons- individuals, companies, residents, citizens, non citizens, non residents, trusts and so on.
3) NO TAX AFTER FIVE FOR ALL !
If the holding period exceed five years, there will be a blanket exemption. Compare to those old days, this definitely an act of improvement and thanks to the government.
It’s value highlighting that companies also qualify for this exemption. Beneath the old scheme, there was a perpetual 5% tax rate for disposals, even after five fulfilled years. As a result, this action represents a advantage for companies. Do bear in mind though that it must be five full years. So you mustn’t be short by even a day.
Example 1 :
If the property was purchase on 5th June 2005, ( as per sales and purchase agreement date), and you are selling on 5th June 2010, this mean, you are selling the property on sixth calendar year. Therefore, you are exempted from RPGT.
4) ONE RESIDENTIAL PROPERTY EXEMPTION
Previously, the once-in-a-lifetime exemption from RPGT is in regard of single residential property from each citizen or permanent resident. Beside, each spouse qualifies for the one-time exemption in his/her own right.
You ought to request for the exemption in writing and it is unchangeable, therefore be very careful. Make sure it’s the finest thing to act under the circumstances. Also, remember that the residential property possibly will be rented out or used as your own residence. As long as it is a property fit for residential purposes, it should eligible for this exemption. By the same token, shoplots, office premises, shophouse, warehouse, vacant land, factory and so on will not qualify. Clearly, companies do not eligible for this exemption.
5) EXEMPTION FOR INDIVIDUALS
This exemption only eligible for individuals, companies do not eligible for this . There is exemption of RM100,000 or 10% of the chargeable gain, whichever is higher.
6) ACQUIRER’S RESPONSIBILITY TO WITHOLD MONEY
The acquirer is compulsory to withhold 2% of the disposal consideration in cash and forward it to the inland Revenue Board (IRB) within 60 days of the date of disposal.
Example 2 :
The acquirer of a property sold for RM500,000 on July 1, 2010 must withhold RM10,000 (2%) and forward it to the IRB by Aug 29, 2010. If he fails to do so, he will be face a penalty. The reminder of RM490,000 may be released to the disposer as per the terms of the agreement.
7) FURNISH A RETURN TO IRB
Both the disposer and the acquirer are essential to provide the IRB with their respective RPGT returns, on the prescribed forms, within 60 days of the date of disposal. The forms are obtainable from the IRB.
8) INTEREST NO LONGER DEDUCTIBLE
Any interest charges incurred earlier to the problem of the certificate of fitness will no longer be deductible in arriving at the chargeable gain from the disposal.
9) LOSSESS
Any loss sustained in a disposal may perhaps be set off t against another profitable disposal by the same individual in the same year or may be carried forward to be set off against a subsequent profitable disposal. This provision has always been applicable but the computation of the amount to be set off is now different.
10) CONDITIONAL CONTRACT
Normally the date of the signing of the sale and purchase agreement ( S&P) is the date of disposal. However, an S&P is considered a conditional contract if it is contingents upon the approval from the government. The date of the approval is treated as the date of disposal.
Examples of approvals required those from the Securities Commission or the Foreign Investment Committee. It has been clarified by the authorities that approval needed from state governments for the transfer of certain properties (subject to conditions) will not been included in this category.
With knowledge of the RPGT provisions and some advance planning exposure to the tax may be reasonably contained or minimizes.
Bank Interest rates
BLR – 2.30% for 3 years
New home loan promotion for limited period only!
Only applicable for housing loan above RM300,000 .
Lockin for 3 years .
Subject to Terms and Conditions apply.
Bank Interest rates, Latest Article/News
4.40% FIXED RATES
FOR 3 YEARS!
Lockin 3 years from 1st drawdown.
Loan amount RM150,000 & above.
Terms and conditions apply.
Latest Article/News
Have you ever had pals ranting in regards to the poor service at their bank, however nonetheless proceed to deal with the identical establishment? Or perhaps they know they should change their investments to get higher returns, however they don’t do anything about it?
It might appear to be procrastination, but this is due to what entrepreneurs commonly call “customer laziness”, said to be fairly pervasive within the monetary services market. These prospects, while not totally happy with their present service supplier (bank, mobile community, fund management company), do nothing about it and proceed to put up with the poor service/higher costs/decrease returns. Transferring to another provider is just too much of a hassle.
In countries like the UK, the place utilities are deregulated, customers can select from a variety of suppliers and costs are sometimes highly competitive. However, despite the provision of comparability and switching websites, which do all the hard work of searching and switching, many consumers still follow their current providers as a result of they see it too much bother to change.
Customer laziness has been attributed to customer characteristic (they are not bothered to make the effort), behavior (familiarity together with your financial institution department or with the brand) and the truth that shoppers are usually extra reactive than proactive. Corporations like such passive clients, however in these tight monetary times when every cents counts, it doesn’t pay to be one. Sure, it takes time and effort to be an active client, however with better entry to market info nowadays, discovering the perfect deals has turn out to be much easier. It will be a disgrace to not do one thing with that knowledge, particularly when it could save you money and grief (within the type of dangerous customer service).
So, if you have not already accomplished so, instill self-discipline in your personal monetary management. Set timelines to commonly evaluation your investments/ finances, and get assist if crucial, whether or not from know-how within the type of a personal finance software or online funding tracking providers, or from a financial adviser. Get organized; give yourself deadlines to take action, and put up reminders. Make appointments: For instance, take a day off to visit the banks to arrange a new account and close a current one.
Customer laziness may also happen in several ways. In our busy lives, we are able to forget to pay or put off paying some bills, which in turn results in penalties and late charges. Automate to keep away from this; put your common bills onto your bank card, then arrange a standing order to have your credit card bills mechanically paid month-to-month from your financial institution account.
Pay attention to what I name potential “laziness traps”. These embrace auto-renewal mechanisms for monetary merchandise like normal insurance policies and credit cards that routinely roll your subscription over to following year. Designed to your convenience, they also eliminate the necessity to evaluation your continued use for the product. Additionally, be diligent when signing up for the offers like free on-line subscription trial intervals with your bank card or checking account details. Maintain in plain sight a listing of the expiry dates for subscriptions/provide periods, and set up reminders to cancel them earlier than the costs kick in.
As shoppers, we need to look out for ourselves by being energetic in looking for out the perfect deals and doing something about it. Do not let “customer laziness” get the better of you.
If you think your interest rates is high, refinance now !
Base Lending Rates (BLR), Latest Article/News
Maybank To Revise Deposit And BLR Rates
KUALA LUMPUR, July 9 (Bernama) — Malayan Banking Bhd (Maybank) will revise upwards deposit and base lending rates, effective July 13, in line with the increase in the Overnight Policy Rate (OPR) by 25 basis points.
Maybank said it would raise deposit rates by up to 25 basis points while the base lending rate (BLR) would be increased by 25 basis points to 6.30 per cent per annum.
The base financing rate (BFR) of Maybank Islamic Berhad will similarly be revised upwards by 25 basis points to 6.30 per cent.
Maybank last revised its BLR on May 18 to 6.05 per cent from 5.80 per cent per annum, previously.
source :BERNAMA
Base Lending Rates (BLR), Latest Article/News
Bank Islam Raises BFR To 6.3 Per Cent
KUALA LUMPUR, July 9 (Bernama) — Bank Islam Malaysia Bhd will revise its Base Financing Rate to 6.3 per cent per annum, effective July 13, from 6.05 per cent, at present.
Managing Director Datuk Seri Zukri Samat said in a statement Friday the revision was due to the 25 basis points hike in the overnight policy rate to 2.75 per cent on July 8.
Bank Islam last revised its BFR on May 18 to 6.05 per cent, from 5.80 per cent, previously.
Source : BERNAMA
Base Lending Rates (BLR), Latest Article/News
CIMB Bank And CIMB Islamic To Increase Lending And Financing Rates
KUALA LUMPUR, July 9 (Bernama) — CIMB Bank and CIMB Islamic Bank announced Friday that they will increase their base lending rate (BLR) and base financing rate (BFR) by 25 basis points.
The increase, from 6.05 per cent to 6.3 per cent, will take effect from July 13, 2010, CIMB Group said in a statement Friday.
Correspondingly, the rates on a range of savings and fixed deposit products will be increased by up to 25 basis points, the group said.
The change in rates followed Bank Negara Malaysia’s decision to increase the overnight policy rate (OPR) by 25 basis points to 2.75 per cent on July 8, 2010.
Source from : BERNAMA
Recent Posts
Best Mortgage : ARE YOU LOOKING FOR HOME LOAN?
Sun, 25th July 2010
Are you buying the property as an investment? Or it is meant to be for occupation?
If you’re an investor with a short term horizon, look out for home-loan packages that allow you to pay interest only for the first five years. You can also opt for a step up loan (where the interest rates is lower at the beginning but increases gradually) or choose a loan with a short or no lock-in period. “ A shorter lock-in period matters to those who bought properties for investment only.
Some features may appeal to those who are owner-occupiers. For example, a step up-loan would be suitable would be suitable for newlyweds or those who have just started working. The instalment payment for the first few years are low, and it will be increased gradually. This wouldn’t be so taxing on their finances in the early years, plus they get to own their property earlier.
Refinancing anyone?
The whole objective of refinancing is to save money from lower interest rates. Be cautions against focusing solely on interest rates, though “ Sometimes, the cheapest rate come with lots of terms and conditions, like a long lock-in period. Also, if you don’t pay for at least consecutive months, the good rates will no longer apply. Look out for hidden charges and read the fine print carefully. Usually those who need a home loan of below RM300,000 would usually opt for the best interest rates, as opposed to flexi loans. This is because they don’t have additional savings to dump into the loan. They want to enjoy savings upfront.
Fixed rate, floating rate or hybrid?
When interest rates skyrocketed to double digits during 1997/98 Asian financial crisis, many house buyers who opted for BLR-pegged home loans struggled greatly in repaying their loans. A fixed rate home loan suits customers who are less tolerant of interest-rate fluctuation. They allow customers to lock in and prepare a fixed amount for the whole tenure. It helps them to plan their finances better.
Some people cannot live without certainty and they prefer to be disciplined with their money. They know that if they have access to money, they may not be able to control themselves. Some of our clients tell us that they don’t like debts. They want to know they’ve paid a certain amount of money every month, which moves them closer to their goal.
However, these loan takes will not benefit from any dips in the BLR. Fixed rates loans are less popular these days with an increasing number of people preferring floating rates instead.
Then there are hybrid loan, where the package will include a combination of fixed and floating rates. In hybrid loan, the interest rate is fixed for a certain number of years; Thereafter , it will be based on the BLR. For instances, from year one to year three, the interest rates may be fixed at 4.40%, Thereafter, the interest rate will be at BLR – 1.90% . Its popularity depends on customers’ perception of the economic conditions in the future. This is also known as hedging.
Do you need more information about home loan products?
Latest Article/News
Author :Melissa Lee
Gone are the good old days…
Today, we have to face and shoulder the hard facts that nationwide our sugar had increased 25 cents per kilogramme (kg), petrol and diesel increased 5 cents per litre and cooking gas (LPG) increased 10 cents. This means all our daily necessities had increased. As we all know sugar is our required ingredient in various food preparation. It also mean, your teh tarik, cakes, cendol, satay, drinks will be affected. Definitely, prices to all these food will be increased too by the Kedai Mamak, coffee-shops and restaurants, just to name a few.
Cooking gas increase will also affect prices in major food outlets as most restaurants and hawker operators are using cooking gas to cook their food.
I am relief that petrol was not increase tremendously like previously. 5 cents, I think is affordable and acceptable to most of us.
Two or three days ago, most banks base lending rates had increased from 6.05% to 6.30%. When base lending rates increased, it means our housing loan installment increase as well. Rationally, our expenses will be increased too. When we receive our monthly salary, the first thing we will settle our housing loan installment or any other rentals. Then follow by food expenses. Because, we need food to survive.
Maybe now, it’s time to save and cut back some expenditure. I do believe every dark cloud has a silver lining.
Sugar subsidy cut is a good sign. It will help to promote a healthier lifestyle. Less sugar consumption means less diabetics and less sugar related diseases and sickness.14.9% of Malaysians were diabetics and this was high compared to just 8% of the population in 1996. Even in China, only about 9% of its population suffered from diabetes. This is very serious and alarming. Therefore, everyone needs to start cutting back their sugar consumption especially food operators who also have responsibility to the public.
For petrol and diesel, maybe it’s high time everyone has to think seriously about car pooling and taking alternative transportation such as Putra LRT, Star LRT, monorail and commuter. Because, these can reduce traffic congestion and less smoke emission. Resulting in a cleaner and better environment.
The hike in base lending rates means fixed deposit (FD) rates will increase too. So, now is the time most of us can deposit our money in the banks in order to gain better interest.
From my personal view, I’m hoping that Base Lending Rates increased can influence rental increment. If rental increased is affected then it may help to lighten some of our financial burdens as investors.
However, increased rental collected by wage-earner may augment their meager monthly wage-earned. For tenant, this will be a burden to them.
So, is it right to increase rental when installment increase? I will let all my level-headed viewers to think and decide for themselves.
Lastly, price increasing in cooking gas…. It’s hard for me to think why it is so positive to increase in our cooking gas? I think the only thing will be, to encourage people to use electric cooking hob. This may help to reduce the possibility of cooking gas exploded in our home. Eh?
Electrical appliances have their short-comings too. They may cause short-circuit and set houses on fire. In addition, electricity is more expensive than gas.
Recollecting my visit to a booth selling electric cooking hob, they had shown me some articles about how cooking gas can easily explode and it’s like a time bomb in our house. It just need to be activated and an explosion will occur.
Or maybe another reason will be, since the price of food will increase in food-outlets. The government would like to encourage home cooking. As we know the healthiest and cleanest food is cooking at home.
So, what comes next to increase? Electricity? Water?
I do believe we are strong, well balanced and level- headed Malaysian and are able to survive and come out of it.
With the various subsidies cut enforcement on-slaught, we have to be frugal and learn to tighten our belts accordingly. Hopefully, with wise adjustments and correct steps taken by our administration, we as “ One Malaysia” would not like to see our beloved fellow “Rakyat” suffer untold miseries and hardship.
In conclusion, we would not want to be the next Greece.
Malaysia Boleh !
KWSP, Latest Article/News
| Information Related To Withdrawals |
| Your EPF savings are a mandatory savings which have been enforced to help you during your retirement. This means that you may not withdraw your EPF savings until you retire. The EPF has provided various withdrawal facilities for you which can be divided into Pre-Retirement Withdrawal and Retirement Withdrawal.Pre-Retirement Withdrawal, on the one hand, allows you to withdraw a certain amount from your savings before you reach the retirement age. This is to help you make the necessary preparations for your retirement.
Retirement Withdrawal, on the other hand, allows you to withdraw all of your savings upon reaching your retirement age. Apart from the withdrawal facilities aforementioned, the EPF too allows its members to make investment withdrawal when you have fulfilled the requirements |
| Withdrawal to Purchase a House | |
|
| Terms Of Withdrawal | |
|
| Withdrawal Eligibility | |||||||||
|
|||||||||
| Important Notice | |||||||||
|
| FAQ Withdrawal to Purchase a House | |
|
| Enquiry | |
|
source: www.kwsp.gov.my
Base Lending Rates (BLR), Latest Article/News
Dear All,
This is new Malaysia Base Lending Rates.
Malaysia Banking Institutions’ Base Lending Rate (BLR)
| No. | Banking Institution | With Effect From | BLR (% p.a.) |
| 1 | Affin Bank Berhad | 13/07/2010 | 6.30 |
| 2 | Alliance Bank Malaysia Berhad | 13/07/2010 | 6.30 |
| 3 | AmBank (M) Berhad | 13/07/2010 | 6.30 |
| 4 | Bangkok Bank Berhad | 14/07/2010 | 6.30 |
| 5 | Bank of America Malaysia Berhad | 13/07/2010 | 6.30 |
| 6 | Bank of China (Malaysia) Berhad | 14/07/2010 | 6.30 |
| 7 | Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad | 19/05/2010 | 5.75 |
| 8 | CIMB Bank Berhad | 13/07/2010 | 6.30 |
| 9 | Citibank Berhad | 13/07/2010 | 6.30 |
| 10 | Deutsche Bank (Malaysia) Berhad | 21/05/2010 | 6.05 |
| 11 | EON Bank Berhad | 14/07/2010 | 6.30 |
| 12 | Hong Leong Bank Berhad | 14/07/2010 | 6.30 |
| 13 | HSBC Bank Malaysia Berhad | 13/07/2010 | 6.30 |
| 14 | J.P. Morgan Chase Bank Berhad | 24/05/2010 | 5.95 |
| 15 | Malayan Banking Berhad | 13/07/2010 | 6.30 |
| 16 | OCBC Bank (Malaysia) Berhad | 13/07/2010 | 6.30 |
| 17 | Public Bank Berhad | 13/07/2010 | 6.30 |
| 18 | RHB Bank Berhad | 13/07/2010 | 6.30 |
| 19 | Standard Chartered Bank Malaysia Berhad | 13/07/2010 | 6.30 |
| 20 | The Bank of Nova Scotia Berhad | 14/07/2010 | 6.30 |
| 21 | The Royal Bank of Scotland Berhad | 19/05/2010 | 5.75 |
| 22 | United Overseas Bank (Malaysia) Berhad | 13/07/2010 | 6.30 |
Source: www.bankinginfo.com.my
Latest Article/News, Stamp Duty & Lawyer Fees
We did post an article about Property Gain Tax before, however, we would like to summarized the new RPGT features in a simplest way for our viewer.
Now, that issue on real property gain tax (RPGT) had resolve. Therefore, it is our chances now to take control and understand more on the situation. Let’s us clear the air for everybody on the RPGT issue. This will contribute to smoother buying and selling process in Malaysia.
The Budget 2010 presented last year October was a shocked to all of us. After few years of suspension, the RPGT was restored with a flat rates 5% for all disposals of real property, regardless of their holding period and their category (either individual or company).
The good news, government responded to the tremendously ensuing feedback and finally came up with some changes and exemptions.
The summary as follows:
1) ONLY CHARGE 5% FLAT RATE
From 1st January 2010, RPGT is impose at 5% flat rates for gains arising from property disposal. This is only applicable for property sold in Malaysia within 5 years of acquisition.
After this law put in place the actual calculation of RPGT can be very tedious and complicated. Please refer No. 5 for the simple example and calculation on RPGT.
2) ONE RATES FOR ALL
The flat rate of 5% is applicable to all persons- individuals, companies, residents, citizens, non citizens, non residents, trusts and so on.
3) NO TAX AFTER FIVE FOR ALL !
If the holding period exceed five years, there will be a blanket exemption. Compare to those old days, this definitely an act of improvement and thanks to the government.
It’s value highlighting that companies also qualify for this exemption. Beneath the old scheme, there was a perpetual 5% tax rate for disposals, even after five fulfilled years. As a result, this action represents a advantage for companies. Do bear in mind though that it must be five full years. So you mustn’t be short by even a day.
Example 1 :
If the property was purchase on 5th June 2005, ( as per sales and purchase agreement date), and you are selling on 5th June 2010, this mean, you are selling the property on sixth calendar year. Therefore, you are exempted from RPGT.
4) ONE RESIDENTIAL PROPERTY EXEMPTION
Previously, the once-in-a-lifetime exemption from RPGT is in regard of single residential property from each citizen or permanent resident. Beside, each spouse qualifies for the one-time exemption in his/her own right.
You ought to request for the exemption in writing and it is unchangeable, therefore be very careful. Make sure it’s the finest thing to act under the circumstances. Also, remember that the residential property possibly will be rented out or used as your own residence. As long as it is a property fit for residential purposes, it should eligible for this exemption. By the same token, shoplots, office premises, shophouse, warehouse, vacant land, factory and so on will not qualify. Clearly, companies do not eligible for this exemption.
5) EXEMPTION FOR INDIVIDUALS
This exemption only eligible for individuals, companies do not eligible for this . There is exemption of RM100,000 or 10% of the chargeable gain, whichever is higher.
6) ACQUIRER’S RESPONSIBILITY TO WITHOLD MONEY
The acquirer is compulsory to withhold 2% of the disposal consideration in cash and forward it to the inland Revenue Board (IRB) within 60 days of the date of disposal.
Example 2 :
The acquirer of a property sold for RM500,000 on July 1, 2010 must withhold RM10,000 (2%) and forward it to the IRB by Aug 29, 2010. If he fails to do so, he will be face a penalty. The reminder of RM490,000 may be released to the disposer as per the terms of the agreement.
7) FURNISH A RETURN TO IRB
Both the disposer and the acquirer are essential to provide the IRB with their respective RPGT returns, on the prescribed forms, within 60 days of the date of disposal. The forms are obtainable from the IRB.
8) INTEREST NO LONGER DEDUCTIBLE
Any interest charges incurred earlier to the problem of the certificate of fitness will no longer be deductible in arriving at the chargeable gain from the disposal.
9) LOSSESS
Any loss sustained in a disposal may perhaps be set off t against another profitable disposal by the same individual in the same year or may be carried forward to be set off against a subsequent profitable disposal. This provision has always been applicable but the computation of the amount to be set off is now different.
10) CONDITIONAL CONTRACT
Normally the date of the signing of the sale and purchase agreement ( S&P) is the date of disposal. However, an S&P is considered a conditional contract if it is contingents upon the approval from the government. The date of the approval is treated as the date of disposal.
Examples of approvals required those from the Securities Commission or the Foreign Investment Committee. It has been clarified by the authorities that approval needed from state governments for the transfer of certain properties (subject to conditions) will not been included in this category.
With knowledge of the RPGT provisions and some advance planning exposure to the tax may be reasonably contained or minimizes.
Bank Interest rates
BLR – 2.30% for 3 years
New home loan promotion for limited period only!
Only applicable for housing loan above RM300,000 .
Lockin for 3 years .
Subject to Terms and Conditions apply.
Bank Interest rates, Latest Article/News
4.40% FIXED RATES
FOR 3 YEARS!
Lockin 3 years from 1st drawdown.
Loan amount RM150,000 & above.
Terms and conditions apply.
Latest Article/News
Have you ever had pals ranting in regards to the poor service at their bank, however nonetheless proceed to deal with the identical establishment? Or perhaps they know they should change their investments to get higher returns, however they don’t do anything about it?
It might appear to be procrastination, but this is due to what entrepreneurs commonly call “customer laziness”, said to be fairly pervasive within the monetary services market. These prospects, while not totally happy with their present service supplier (bank, mobile community, fund management company), do nothing about it and proceed to put up with the poor service/higher costs/decrease returns. Transferring to another provider is just too much of a hassle.
In countries like the UK, the place utilities are deregulated, customers can select from a variety of suppliers and costs are sometimes highly competitive. However, despite the provision of comparability and switching websites, which do all the hard work of searching and switching, many consumers still follow their current providers as a result of they see it too much bother to change.
Customer laziness has been attributed to customer characteristic (they are not bothered to make the effort), behavior (familiarity together with your financial institution department or with the brand) and the truth that shoppers are usually extra reactive than proactive. Corporations like such passive clients, however in these tight monetary times when every cents counts, it doesn’t pay to be one. Sure, it takes time and effort to be an active client, however with better entry to market info nowadays, discovering the perfect deals has turn out to be much easier. It will be a disgrace to not do one thing with that knowledge, particularly when it could save you money and grief (within the type of dangerous customer service).
So, if you have not already accomplished so, instill self-discipline in your personal monetary management. Set timelines to commonly evaluation your investments/ finances, and get assist if crucial, whether or not from know-how within the type of a personal finance software or online funding tracking providers, or from a financial adviser. Get organized; give yourself deadlines to take action, and put up reminders. Make appointments: For instance, take a day off to visit the banks to arrange a new account and close a current one.
Customer laziness may also happen in several ways. In our busy lives, we are able to forget to pay or put off paying some bills, which in turn results in penalties and late charges. Automate to keep away from this; put your common bills onto your bank card, then arrange a standing order to have your credit card bills mechanically paid month-to-month from your financial institution account.
Pay attention to what I name potential “laziness traps”. These embrace auto-renewal mechanisms for monetary merchandise like normal insurance policies and credit cards that routinely roll your subscription over to following year. Designed to your convenience, they also eliminate the necessity to evaluation your continued use for the product. Additionally, be diligent when signing up for the offers like free on-line subscription trial intervals with your bank card or checking account details. Maintain in plain sight a listing of the expiry dates for subscriptions/provide periods, and set up reminders to cancel them earlier than the costs kick in.
As shoppers, we need to look out for ourselves by being energetic in looking for out the perfect deals and doing something about it. Do not let “customer laziness” get the better of you.
If you think your interest rates is high, refinance now !
Base Lending Rates (BLR), Latest Article/News
Maybank To Revise Deposit And BLR Rates
KUALA LUMPUR, July 9 (Bernama) — Malayan Banking Bhd (Maybank) will revise upwards deposit and base lending rates, effective July 13, in line with the increase in the Overnight Policy Rate (OPR) by 25 basis points.
Maybank said it would raise deposit rates by up to 25 basis points while the base lending rate (BLR) would be increased by 25 basis points to 6.30 per cent per annum.
The base financing rate (BFR) of Maybank Islamic Berhad will similarly be revised upwards by 25 basis points to 6.30 per cent.
Maybank last revised its BLR on May 18 to 6.05 per cent from 5.80 per cent per annum, previously.
source :BERNAMA
Base Lending Rates (BLR), Latest Article/News
Bank Islam Raises BFR To 6.3 Per Cent
KUALA LUMPUR, July 9 (Bernama) — Bank Islam Malaysia Bhd will revise its Base Financing Rate to 6.3 per cent per annum, effective July 13, from 6.05 per cent, at present.
Managing Director Datuk Seri Zukri Samat said in a statement Friday the revision was due to the 25 basis points hike in the overnight policy rate to 2.75 per cent on July 8.
Bank Islam last revised its BFR on May 18 to 6.05 per cent, from 5.80 per cent, previously.
Source : BERNAMA
Base Lending Rates (BLR), Latest Article/News
CIMB Bank And CIMB Islamic To Increase Lending And Financing Rates
KUALA LUMPUR, July 9 (Bernama) — CIMB Bank and CIMB Islamic Bank announced Friday that they will increase their base lending rate (BLR) and base financing rate (BFR) by 25 basis points.
The increase, from 6.05 per cent to 6.3 per cent, will take effect from July 13, 2010, CIMB Group said in a statement Friday.
Correspondingly, the rates on a range of savings and fixed deposit products will be increased by up to 25 basis points, the group said.
The change in rates followed Bank Negara Malaysia’s decision to increase the overnight policy rate (OPR) by 25 basis points to 2.75 per cent on July 8, 2010.
Source from : BERNAMA