Borrow RM733,500 and Pay RM3,165,108.84!! (4x times more from original loan)
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
Hi, I'm Melissa. The co-founder of the website, cum the editor. I want to thank you for checking out our article. If you're looking to buy a new house, refinancing, applying for a home loan or looking to transfer your property, you are at the right place. We can help you. We have more than 15 years of experience in the industry. So, why not let the expert like us handle it for you? Or at least talk to us first. You can reach our consultant, Mr. David, at +6012-6946746. Hope to hear from you soon.
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