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Housing Loan Jack is a 30 years old officer and he earns RM 6,500 per month.

Recently, he plans to buy a new double-storey house with MRTA house insurance. After searching for a while, Jack found a suitable house at Sungai Buloh, Kuala Lumpur which will costs him RM 180,000. Currently, Jack has a saving of RM 22,000 in his bank account. He decided to apply for a housing loan and pays RM 20,000 as a down payment for the doublestorey house. The loan period he intends to take is 25 years. As there are a lot of different banks offering variety housing loan packages, Jack is not sure about which bank should he choose to apply for the housing loan. After that, he decides and goes to two different banks, which are Public bank and Maybank to collect the information he wanted. The details of both housing loan interest rates are shown in the table below: Bank Public Bank Maybank Margin of Financing 100% 90% Interest Rate 3.80%(1st year) -1.70% (each year for 24 years) 2.60% (1st year) -2.20% (each year for 24 years)

Public bank Price of house Down payment Loan Amount Loan Period Loan Interest Rate : RM 180,000 : RM 20,000 : RM 160,000 : 25 years : 1st year - 3.80%

Loan amount

: RM 180,000-RM 20,000=RM 160,000

First year housing loan interest: RM160,000 X 1.75%=RM 2,800 1 year housing loan interest : RM 160,000 X 3.85%= RM 6,610

24 years housing loan interest: RM 6,610 X 24=RM 147,840 Total amount Yearly payment Total housing loan interest : RM 160,000+RM 2,800+RM 147,840=RM 310,640 : RM 310,640 25=RM 12425.60 :

Maybank Price of house Down payment Loan Amount Loan Period Loan Interest Rate : RM 180,000 : RM 20,000 : RM 160,000 : 25 years : 1st year 2.60%

Loan amount

: RM 180,000 RM 20,000 = RM 160,000

First year housing loan interest: RM 160,000 x 2.95% = RM 4,720 1 year housing loan interest : RM 160,000 x 3.35% = RM 5,360

24 years housing loan interest : RM 5,360 x 24 = RM 128,640 Total amount of payment: RM 160,000 + RM 4,720 + RM 128,640 = RM 293,360 Yearly payment Total housing loan interest : RM 293,360 25 = RM 11,734.40 :

As a conclusion, xxx bank offers a lower interest rate than xxx bank.

Financing purchases

Maybank under construction or completed properties construction of bungalow sub-sale redraw re-mortgage and refinancing from other financial institutions

Public bank Completed and uncompleted properties Overdraft up to 70% of the combined loan amount Daily rest interest calculation Redraw Facility available (for new Conventional Housing Loans with an approved amount of RM 100,000 and above)

Minimum loan amount

RM 100,000 (include of MRTA for ZEC) RM 150,000 (for ZEC/EPA loans) Loan tenure Age 60 for 30 years Professional and graduates Age 65 for 40 years Loan Tenure Extended repayment period up to 40 years or age 70 Zero payment

Payment during construction period Other benefits

Zero payment

Deferred instalment payment for up to 5 years Balloon payment schemes

Credit cards with Exclusive Annual Fee Waiver for the entire loan tenure for eligible customer. Free RM 10,000 personal accident coverage for one year LCD TV Gift Draw for customer who takes up MRTA (Campaign is from 1 February 2009 to 31 December 2009)

5. MOA up to 90% of property value.

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