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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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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The FBM KLCI is a tradable index comprises of the 30 largest companies in the Bursa Malaysia by market capitalization. The index’s component stocks are due for second 2011 revision on 8th December.
Based on the recent data, PLUS and Gamuda are expected to drop from FBM KLCI components. PLUS will be dropped due to privatization.
On the other hand, Gamuda will be dropped because it is now the 37th largest company by market capitalization. This is because as per FTSE regulations, if the counter no longer in the top 35th, it should be dropped from the FBM KLCI.
Based on the table below, to replace PLUS and Gamuda, 3 most likely candidates are Nestle, AirAsia and Bumi Armada.
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Pavilion REIT (Real Estate Investment Trust) is scheduled to be listed in Main Market of Bursa Malaysia on the 7th December 2011. The Initial Public Offering (IPO) consists of 790 million units at an IPO price of RM0.88 per unit.
Out of these, 755 million units are offered to Malaysian and foreign institutional and selected investors and a retail offering of 35 million units to the Malaysian public, eligible tenants and directors of the Manager and its eligible employees, Urusharta Cemerlang Sdn Bhd, Capital Flagship Sdn Bhd and Kuala Lumpur Pavilion Sdn Bhd.
The institutional price will be determined by way of book building while for the retail application, it is payable at RM0.88 upon application. If the final retail price is lower, the difference will be refunded.
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Kuwait Finance House (KFH) has a very competitive personal loan package with profit rate (interest rate) as low as 4.99% per annum.
Unfortunately, the loan package is only for government staff and government agency, which have salary deduction via Coshare Holding Berhad’s (Coshare) / i.destinasi sdn bhd deduction.
Another benefit of personal loan from KFH is fast approval and 100% payout.
The table below is the features of the loan package.
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