Are you paying RM15,000 penalty fees for your home loan?
Hey guys, I’m Melissa. I’m from malaysiahousingloan.net.
Every day we received a lot of questions regarding housing loan.
We think is a good idea to share those question on a series in the short video like this.
So, today question is.
Where can I check my home loan lock-in period?
So, what is lock-in period?
Lock-in period is a length of time which will incur a penalty in the event of you fully settled your home loan in full.
And there are two ways to check your lock-in period.
No. 1, you can refer to bank letter offer.
It’s usually will be stated on the full settlement*, full redemption or even prepayment column.
The bank will indicate, something like this.
“A prepayment penalty charge of 3% on the approved loan amount will be imposed if the loan account is closed following a full settlement of loan during the lock-in period of 5 anniversary years from the date of the first drawdown.”
So, some banks will charge 2-3% penalty fees. But, some banks are not charging too.
The approved loan amount is the total original loan amount. And the lock-in period is varied from 3 to 5 years, you can refer to your letter offer.
Some letter offer will state the first disbursement and some will state full disbursement. So, if stated full disbursement it just means that the client (borrower) has to stay with the bank longer.
So, how to calculate the lock-in period penalty fee?
If your loan amount is RM500,000, and the penalty rate is 3%, that’s actually equal to RM15,000 penalty fees amount.
And I call that a massive unnecessary cost to bear.
If you’re looking for refinancing or sell your house, you have to make sure is after the lock-in period.
So, not everyone actually keeps tracking their first disbursement date; you will need that date to calculate the lock-in period. And if you don’t have that, that’s where the option two comes in.
No. 2 Check With Your Bank.
Your bank will have the exact due date of the lock-in period in their system, you can call up the bank customer service to check your lock-in period.
So, while you are there try to check your first disbursement date and also your penalty fees.
After that, it’s easier for you to plan for your refinancing, selling your house or even when to make the full settlement.
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