Basically there are 2 type of flexi mortgage loan.
The first type is the one that combine it with a current account. A few banks that has this package are Alliance, Standard Chartered and Hong Leong. Therefore they house owner will transfer all his current account from other bank to this bank eg Bank A. If the mortgage loan is RM200k, but he has RM20K in the current account, automatic the mortgage loan will be reduced to RM180. Therefore the mortgage loan amount changes according to how much the investor put in or take out from the current account. Please take note, if the money put into saving account or fixed deposit only gives you 2-4% but if put into this current account will saved you about 5% (eg BLR 6.57-1.75%). Remember one dollar saved is actually 1 dollar earned :)
The second type of flexi account means that you has the flexibility to do prepayment (meaning to pay more in order to settle the debt earlier) without having to give notice to the bank. Banks that has this package are Public Bank and OCBC.
You might be confuse when you see the second product coz hey my dad is already paying more everymonth for his installment. Hehehehe please read ur t&c carefully, the older mortgage product do not allow prepayment unless notify or request from the bank. Therefore any dollar you paid earlier is only stand by for the next month's installment and no interest given!
Both product above subject to a 5 years lock in (some 3 years depending on banks).
Good luck and happy investing.
The first type is the one that combine it with a current account. A few banks that has this package are Alliance, Standard Chartered and Hong Leong. Therefore they house owner will transfer all his current account from other bank to this bank eg Bank A. If the mortgage loan is RM200k, but he has RM20K in the current account, automatic the mortgage loan will be reduced to RM180. Therefore the mortgage loan amount changes according to how much the investor put in or take out from the current account. Please take note, if the money put into saving account or fixed deposit only gives you 2-4% but if put into this current account will saved you about 5% (eg BLR 6.57-1.75%). Remember one dollar saved is actually 1 dollar earned :)
The second type of flexi account means that you has the flexibility to do prepayment (meaning to pay more in order to settle the debt earlier) without having to give notice to the bank. Banks that has this package are Public Bank and OCBC.
You might be confuse when you see the second product coz hey my dad is already paying more everymonth for his installment. Hehehehe please read ur t&c carefully, the older mortgage product do not allow prepayment unless notify or request from the bank. Therefore any dollar you paid earlier is only stand by for the next month's installment and no interest given!
Both product above subject to a 5 years lock in (some 3 years depending on banks).
Good luck and happy investing.
