In the past, there are 2 types of Home Loans – the Convention home loan and Flexi Home Loan. The Convention Home Loan is no longer offer by most of the banks, due to the interest that payable is very much higher than the Flexi Home Loan. With Flexi Home Loan,you pay off your home loan faster, as well as reduce the interest payable.
How Flexi Home Loan work:
When you apply for a Flexi Home Loan, a home financing account will be opened by the bank. It is a current account and you can request for cheque book, ATM, and use it as a normal current account. The only different is, there will be a monthly bank charges for this account and no interest at all for whatever amount you have deposited. But, the money that you saved in the account, will help you to pay for your home loan installment, as well as to offset the principal amount!
For Example, your loan is RM100,000 . And in your account, you have deposited RM20,000 without withdraw it. So, the interest for your total home loan will be RM100,000 – RM20,000 = RM80,000 . Your interest will be calculated based on RM80,000 instead of RM100,000! That’s mean, you are saving RM20,000 interest every month! (Home loan interest is based on BLR rate , which is different from Personal Loan)
What if you want to withdraw some money from account, say RM5,000? Well, just go ahead for withdrawing. So now, your account left RM15,000. And this is the amount that will be used to offset the loan interest. In another words, you saved RM15,000 loan interest now.
Below are the banks that offer Flexi Home Loan:
- Affin Bank Berhad (www.affinbank.com.my)
- AmBank (M) Berhad (www.ambg.com.my)
- OCBC Bank (Malaysia) Berhad (www.ocbc.com.my)
- Public Bank Berhad (www.pbebank.com)
- Alliance Bank Malaysia Berhad (www.alliancebank.com.my)
- CIMB Bank Berhad (www.cimbbank.com.my)
- Citibank Berhad (www.citibank.com.my)
- EON Bank Berhad (www.eonbank.com.my)
- Hong Leong Bank Berhad (www.hlb.com.my)
- HSBC Bank Malaysia Berhad (www.hsbc.com.my)
- Malayan Banking Berhad (www.maybank2u.com.my)
- RHB Bank Berhad (www.rhb.com.my)
- Standard Chartered Bank Malaysia Berhad (www.standardchartered.com.my)
- United Overseas Bank (Malaysia) Bhd (www.uob.com.my)
