Have you ever come across with a home loan offer that
Purchase Price by the bank is RM733,500 ( loan amount)
Selling Price By The Bank is RM3,165,108.84 ( interest + principal, calculated based on maximum capped profit rate)

In this case, the capped rate is 10% p.a

Tenure 504 months @ 42 years
Instalment : RM2736

For some of us, we might freak out to see such a huge amount! I know I do.

Usually, this only happens in Islamic Loan packages where a bank will state the maximum profit they are allowed to profit from this particular home loan.

Most of the time, the bank might not charge borrower that much, usually a bank will base on the current interest rate to calculate instalment and interest.

Even, RM2736 x 504 months = RM1,378,944. Not even close to RM3mio.

However, you’ll need to understand that a bank has every right to increase the interest rate up to 10% p.a. or up to their maximum capped rate. When they do, the Selling Price By The Bank will be way higher.

I think it’s good to know upfront before signing the home loan contract for 30-40 years.

If you love this tip, it’s one I hope you share far and wide, with everyone you know.

With enormous love and appreciation,

For more Home Loan information and enquiry, please call/ Whatsapp us at +6012-6946746 or visit our website www.malaysiahousingloan.com