Loan and Financing


Mortgage

If you plan to buy a house, you’ll most probably need a home loan.  However, getting a good home loan is actually pretty challenging.  You’ll need to determine the kind of loan you need, and you’ll have to find out the interest rates so you can make comparison.  Traditionally, that means visiting or calling up all the banks.

In Malaysia, there are generally two types of home loan – flexi, and non-flexi (or “conventional”).  Flexi loans give you the freedom to reduce your loan interest with additional income, whilst non-flexi loans are more rigid and have the same repayment instalment throughout the loan period.  Depending on what you need, you can opt for either.  Personally, I believe flexi loan to be more beneficial.

In 2013, Bank Negara introduced a new regulation, which limits home loan period in Malaysia to a maximum of 35 years. If you are planning to purchase a more expensive home by stretching your loan period to 45 years or beyond, you should take note that you can’t do that now.

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Pound SterlingMany of us face the dreaded mid-month cash crisis. You struggle to borrow even just a small amount of money to meet your urgent needs when your payday is not around. Now there is no need to struggle a lot, Payday loans are there to help you out. You can easily borrow these loans to pay off for your urgent needs quickly.

These short term loans can be used to meet any of your needs instantly. You can use them to pay off your car repairs, medical bills, electricity bills and other monthly bills. The funds borrowed from payday loan lenders can be repaid in a period of 14 to 31 days. You can adjust the loan repayment date to your payday.

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Loan

If you are Australian resident and would like to obtain fast cash, you can’t go wrong with Cashfirst. Cashfirst will provide cash loans in between $1000 and $5000 to meet your unexpected expenses such as an emergency car breakdown.

Guess what! If you are in dire need for fast cash, you can obtain from Cashfirst in no time. Approval process is extremely fast. Normally, it takes place within 60 seconds, and the cash will be in your bank account within 24 hours of approval. That’s what we call fast!

Cashfist is also well-known for their excellent customer service and turned any complicated ordeal, into a simple and easy process. They always treat the customers with respect that they deserve.

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The calculation for monthly home loan repayment is different than the hire purchase or personal loans. It is based on principle loan balance (reducing balance) instead of total loan, which normally used in hire purchase or personal loan.

The advantage of principal loan balance over total loan is the total interest (profit) paid to the bank getting lesser as times go by.

For those who like to calculate the monthly home loan repayment on your own, you may use the following formula,

Alternatively, you may want to use an online home loan calculator.

Formula for Monthly Repayment

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BNM

On the 18th November 2011, Bank Negara Malaysia (BNM) unveiled new financial guidelines to the financial institutions aimed at promoting prudent, responsible and transparent retail financing practices. The guidelines will take effect starting from 1st January 2012.

The guidelines would be applicable to home and vehicle financing, credit and charge cards, personal financing including overdraft facility and financing for the purchase of securities with an exception for share margin financing, which comes under stock exchange rules.

BNM requires all financial institutions to make assessments of a borrower’s ability to afford financing facilities based on a prudent debt service ratio.

The table below is the summary of the guidelines.

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