Who would have known that we could actually make money with money? Anyway during cigarette break just now, I asked my boss about home loan since I would be purchasing one. For me, it is better to know more from him because he has many experiences in purchasing property.
He shared with me on home loans and covered the basics. Some basics are BLR-2.1% is considered acceptable and use a mortgage loan. Now for readers who will be buying property for the first time let me explain more in detail about these because I don’t know myself until I asked.
BLR = Government announced interest rate
Therefore, the higher the number the better it is. For example, BLR minus 2.1% = 2010 BLR for Malaysia is about 6%. Therefore your interested is 6-2.1= about 4%. If the bank offer higher BLR minus package, the better it is for purchasers.
Mortgage loan = Put more money, less interest payable amount but could be withdrawn when needed. Committed amount (monthly installments) will be deducted and could not be withdrawn.
My boss shared that the mortgage loan could help to safe money. Take a look at the current fixed deposit percentage in Malaysia is at about 3%. But after deducting the BLR, we actually could save about 1% of interest ( (BLR 6%- 2%) – fixed deposit 3%). So if you have extra money, place it in the loan to reduce the interest rate and save 1%.
Another tip he shared is if you relatives don’t mind to place the money in your loan, you can put more money in the mortgage loan and free yourself from interest. The money could be taken back anytime, so its better than fixed deposit. The interest growth you can pay them at 3% and from there you save 1% interest. Usually bank will earn the 1% now why not you earn it. The problem is every month you have to calculate the 3% interest and pay back to the owner.
Well the conversation enlightens me about how rich people got richer. They think a lot about all the loop holes to make money or reduce paying. With this, I learned that I should understand more about money and brush up my skills at calculations. Well I think that’s what I should do
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Showing future married men what their future holds for them
Posted by
Kenny
Dear Readers, The purpose i wrote is blog is to share with all you bachelors out there to show what life will be when you are married. Here i will let you have an idea of how life is when you are married so that you can prepare for it. You will see some lifestyle and many other more and of course of everything i know... I may not be an expert blogger but hack hope you like my postings.
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1 comments:
Just for sharing:
Whatever that have been shared by your boss is not a definate answer. Different bank having different approach in dealing with bank loan . Please don't mind to ask each and every single details. Dont simply assume.
eg: what is the charges when you want to withdraw the extra money that you place in the loan account?
what is the duration that you need to wait in order to withdraw the money? what is the hidden cost that you need to bare!
although different bank looks like offering same package... but somehow... there a different procedures would be... just be more alert...
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