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Optimizing Your Housing Loans - 31 May 2008
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Optimizing Your Housing Loans - 31 May 2008

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31st May 2008 Training by Peter Lim

31st May 2008 Training by Peter Lim

Published in: Economy & Finance, Business

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  • 1. Optimize your Housing Loans
  • 2. Mistakes in Comparing Loans
    • Loan Package 1
      • RM 100,000 Loan
      • 30 Years
      • 6%
      • Monthly Inst = RM 600
      • Total = RM 216,000
    • Loan Package 2
      • RM 100,000 Loan
      • 15 Years
      • 7%
      • Monthly Inst = RM 899
      • Total = RM 161,820
    Which Loan Package is better ?
  • 3. Computation of Interest Charged
    • Know the interest rates charged.
    • Eg. 6% per year .
    • Know the outstanding balance.
    • Eg. RM 100,000
    • Find out whether it’s Daily Rest / Monthly Rest
    • Eg. Monthly Rest
    • Find out the Monthly Installment Amount
    • Eg. RM 800 / Month.
  • 4. Calculation of Interest
    • Monthly Rest
    • Interest / Month
    • = $ 100,000*6%/12
    • = $ 500 / Month
    • Installment = RM 800
      • Interest = RM 500
      • Principal = RM 300
    • Daily Rest
    • Interest / Day
    • = $ 100,000*6%/365
    • = $ 16.44 / Day
    • Installment = RM 800
      • Interest = RM 493.2 (30 days)
      • Principal = RM 306.80
  • 5. Rates offered by Public Bank
    • Loan Amount
    • Above RM 150k BLR – 2.0%
    • Between 100k to 150k BLR – 1.9%
    • Less than 100k BLR – 1.8%
    • For latest rates, please check with any Public Bank Staff, or
    • Melissa at 012-4256930
  • 6. Benefits
    • To Clients
    • Better Rates
    • Savings can be channeled to Unit Trust
    • Optional MRTA
    • To Agents
    • Referral Fee of 0.1% of Loan Amount
    • More Unit Trust Sales
    • Personal Satisfaction
  • 7. Real Case Study: Mr. Peter (Age 28)
    • Current Loan Balance = RM 182,000
    • Interest Rate Charged = 5.89% per year.
    • No. of Years Left = 28 Years
    • Monthly Installment = RM 1,108
    • Penalty if refinance : 3% of outstanding balance. No penalty for early settlement.
  • 8. When Re-finance to Public Bank
    • Current Loan Balance = RM 225,000
    • Interest Rate Charged = 4.75% per year.
            • BLR – 2%
    • No. of Years Left = 40 Years
    • Monthly Installment = RM 1,048
    • By Refinancing, Mr. Peter will be able to cash-out RM 43,000 Lump Sum , and save RM 60 every month .
  • 9. Continuation from Case Study
    • RM 43,000 Lump Sum with RM 60 Monthly, invested for 28 years (at 10% per year), would become RM 808,800 at the end of 28 years.
    • With 808,800 Invested at 10%, it would give an annual interest of RM 80,880.
    • Much more than enough to pay for the leftover monthly installment of RM 1,048 per month.
  • 10.
    • Questions
    • &
    • Answers