Archive for the ‘Home Loan Tips’ Category
Wisen Up About Home Loans
Monday, December 28th, 2009
Wisen up about home loans
Use these tools to breeze through the home loan process
Just when you thought the search for your dream home is finally over, the real work, in fact, has just only begun. Now, you have to sift through all the information to find the best home loan package to pay for your new house-an extremely daunting task for a buyer, especially considering that there are over 450 home loan packages offered by 26 different financial institutions.
Why should you bother to make the effort in looking through all the home loan packages? For starters, a home loan is the biggest financial commitment most people will make in their lifetime. Home loans will affect an individual long after they are taken-it is a constant burden that will consume a portion of your monthly income for a period up to a few decades. Choosing a package ill-suited to your situation can be a big mistake that will cost you many thousands of ringgit in the long run.
Also, depending on whether you are a property investor, an expatriate, an entrepreneur, a high net-worth individual or simply a first-time house buyer, the offer you choose should be very different. It is not as simple as simply getting the loan with the lowest interest rate-you have to consider many other factors that will complement your financial needs and situation throughout the loan tenure.
But how exactly do you look for information on all those different packages? Before you pull out those leaflets, consult those banks or visit those websites, know that your problems and frustrations have not gone unnoticed.
Recognizing the need for an accessible and affordable way for home buyers to find information on local home loans, Fiscal WISE Sdn Bhd has developed their Home Loan Calculators-a series of convenient web-based financial tools designed to optimize your home loan, available to the general public (at www.fiscal-wise.com.my) for absolutely free!
Here is a walkthrough of all the powerful tools on WISE’s site-any one of these can either help you avoid lots of trouble or save thousands of ringgit-or both.
Just fill in the details and click Search….
…to find the 10 best packages for you!
Home Loans Made Easy-Top 10 Home Loan Packages
Of all the Home Loan Calculators developed by WISE, the most attractive to loan-seekers has to be the WISE Loan Search Wizard. This application is an online-based search engine that holds all the essential information on all the loan packages offered by all the banks in Malaysia, enabling you to find your perfect package at the click of a button.
Extremely easy to use, the powerful WISE Loan Search Wizard will provide you with all the information you need in just a few moments. After inputting the search criteria (Do you want loans with the lowest interest? Lowest fixed rate or the longest Loan Tenure?) and loan details ( such as preferred loan tenure, property value), the WISE Loan Search Wizard will filter through all the packages available and present the top ten packages best suited to your needs in a neat list.
The tool goes further by breaking down the information submitted and calculating it to present you with the details related to all the presented home loans such as the monthly repayment expected, the average interest rate and total interest. Just click on “More Details” to find the helpful information. For those who have located what they want, the tool also allows you to apply online immediately.
Refinancing in a click
Even if you already have an existing home loan, you may be able to find help from WISE in the form of the Refinance Calculator. Why refinance? Refinancing a mortgage does cost money, but in many cases, refinancing can be a wise option that will save thousands of ringgit in the end. Other than lowering your interest rate or monthly repayments, refinancing a loan can also free the money trapped in your home equity for other uses, such as investments and paying off other debts that have a higher interest.
Despite the usefulness of refinancing, it’s difficult for many people to know when it is a good time to refinance. This is where this tool comes in-the WISE Refinance Calculator will provide you with all the refinancing options available and even calculate the amount saved with each option, giving you a good idea whether to refinance that home loan you’re having. The process of refinancing is made worry-free as the calculator takes care of all those pesky details for you.
Cost of Property Purchase Calculator–know the total amount you have to pay
Making sense of all those numbers
More often than not, a buyer has to pay for various fees to purchase a property, adding an unanticipated amount to the overall cost. To avoid any surprises, use the Cost of Property Purchase and the Purchase and Loan Agreement Calculator tool to calculate all the legal fees pertaining to loan agreement, such as the scale legal fees, stamp duties, caveat, disbursement fees, search, travelling expenses, and others.
Can you afford that property or that loan? If you have ever asked yourself that question, another tool that can help you is the Max Loan Estimator. Just input details such as your monthly income, age, interest rate and other loans, and the tool will immediately estimate the maximum amount you can borrow as well as the maximum property price you can purchase.
For those who want to keep track of their loans, the Loan Repayment Calculator and the Loan Balance Calculator will help you find out the monthly repayments you have to make and your outstanding loan balance respectively.
What now?
Other than the online financial tools, the Fiscal Wise website also offers other services such as home loan consultation, property listing and loan guide, providing a comprehensive package for you to find your dream home at the lowest cost. Find the Home Loan Calculators or further information on home loans by logging in to www.fiscal-wise.com.my.
Fiscal WISE Sdn. Bhd. is a pioneer in the Financial Services & Advisory business. Over the last 4 years it has developed a strong reputation of being a truly independent, professional, innovative and effective player in the market. Fiscal WISE’s proven system and method enables its consultants to write 3 times more business than the market average and is a model for future financial service providers. The vision of WISE is to emerge as a one-stop professional financial service hub entrusted by customers, agents and partners to create value-add in the financial services market.
How You Can Save by Refinancing Your Home Loan in Malaysia
Wednesday, April 1st, 2009
In this home loan case study, assumed a home loan with an initial loan amount of RM270, 000 and calculated using a 6% interest over a period of 360 months. The total money that is paid to settle the home loan amount plus interest is equivalence to a whopping total of RM568, 000 whereby the interest paid is RM298, 000 on top of the RM270, 000 loan amount.
Home Loan Refinancing Case Study
There are two methods that you could save by refinancing your home loan. Both methods are able to help you save a lot on the interests paid for the home loan. Beside that, another purpose of refinancing can be used to reduce your personal loan or credit card.
First Method: By reducing monthly installment.
Example 1: Initial Loan Amount RM270K, Term = 30 years, Monthly Installment =RM1,618
Using the case study home loan package, after paying the installments for 5 years, the outstanding loan amount is estimated to be RM250,000.00 and estimated interest remaining of RM224, 737.60 based on the monthly installment of RM1,618.00
By refinancing the home loan, assuming the new interest rate is whole tenure 3.55% , the monthly installment has been reduced to RM1,258.00 per month for the remaining 25 years. With the new interest rate, now the total interest that is needed to pay for the home loan is reduced to RM120, 364.27. Do you notice the total interest amount?
That is a total savings of RM100,374.33 by just refinancing your home loan and monthly installment save RM360 (Calculated how much you can save with our Refinance Calculator)
Second Method: By maintaining the monthly installment.
Example 2: Initial Loan Amount RM270K, Term = 30 years, Monthly Installment =RM1,618
Using the same case study home loan package, after paying the installments for 5 years, the outstanding loan amount is estimated to be RM250,000.00 and estimated interest remaining of RM224,737.60 based on the monthly installment of RM1618.00.
This method of refinancing is by maintaining the same monthly installment of RM1618.00, while refinancing the home loan using the new interest rate whole tenure 3.55%.With this new rate, you will not only save more on interest paid, the loan term has also been reduced to a total 208 month remaining. Not only that your home loan is settled earlier, with the shorter loan term, the interest amount that is paid for the remaining home loan is RM83,780.06. That is a huge total savings of RM140,957.54.
YES! That is a total saving of RM140,957.54 by refinancing your home loan and you are able to shorten the tenure up to 89 months. (Calculated how much you can save with our Refinance Calculator)
Third Method: Refinance and Maximize Your Cash Withdrawal.
Example 3: Initial Loan Amount RM270K, Term = 30 years, Monthly Installment =RM1,618
By refinancing the home loan, assuming the new interest rate is whole tenure 3.55% compare to any personal loan or credit card may charge you 9% to 18% per annual you already save 9% - 3.55% = 5,45% per annual. Let assume you got an outstanding loan of personal loan RM110K. With the new interest rate, 1st year you already can save 5.45% x 110K = RM5995 and you only need to extra RM193 per month.
Get to know more about Refinancing your home loan? Use our Refinance calculator ..
Chat with our live consultant now to get more experts view on your loan. Secure your future.
Benefits of MRTA and MLTA in Malayisa
Monday, March 30th, 2009
Protect your properties for your love ones by getting your home loan protection scheme.
MRTA = Mortgage Reducing Term Assurance
MLTA = Mortgage Level Term Assurance
Buying a house is one of life’s achievements, which is a visible legacy for your present and future. However, unexpected events may lead to loss of income or a decreased ability to fulfill loan obligations. An Mortgage Reducing Term Assurance (MRTA) or Mortgage Level Term Assurance (MLTA) safeguard your home for you and your family.
Mortgage Reducing / Level Term Assurance Plan (MRTA/MLTA)
MLTA or MRTA plan will ensure repayment of your outstanding mortgage in the event of Total Permanent Disability (TPD) or loss of life.
The Insurance will take care of your loved ones with these affordable protection plans for your home loan. Rest assured that your ongoing loan repayments will not financially “burden” your loved ones.
MRTA Explained
Example:
- Loan Amount: RM 300,000.00
- Loan Tenure: 30 years
- Outstanding loan amount (at point of death / TPD): RM250,000.00
For the chart above, the coverage of the insurance will reduce annually from RM300,000 to zero at the end of the loan tenure. This mean that if anything happened in this period the insurance company only payout the claim according to that year coverage. Example, for the above cases, when the Insured passed away or TPD at 9th year with a outstanding of RM250K, the insurance company will payout RM250k to the lender/bank and the remaining RM3k if any to the nominee (s) of the Insured (Assumed that the coverage is RM253k that time). Noted: (Different Insurance company will have a different schedule of TPD claim payment).
MLTA
Example:
- Loan Amount: RM 300,000.00
- Loan Tenure: 30 years
- Outstanding loan amount (at point of death / TPD): RM250,000.00
For the chart above, the coverage of the insurance remain at RM300,000 until end of the loan tenure. This mean that if anything happened in this period a amount of RM300k will payout by the insurance company. For the above cases, when the Insured passed away or TPD at 9th year with a outstanding of RM250K, the insurance company will payout RM250k to the lender/bank and the remaining RM50k to the nominee (s) of the Insured. Noted: (Different Insurance company will have a different schedule of TPD claim payment).
Get to know more about MRTA premium cost for your home loan? Use our MRTA calculator ..
Chat with our live consultant now to get more experts view on your loan. Secure your future.
Not only home loan calculator but personal budget calculations
Monday, February 2nd, 2009
Calculating your home loan budget with the home loan calculator wouldn’t just give you the cut, but also personal loans – But what’s better, you can even put your personal budget together with these guidelines and home loan calculator.
WISE proved better over their competitors once again by offering not only an intelligent home loan calculator but also calculators/wizards to help you plan your personal budget and savings. There are various calculators available in their Tool section in their site, and it’ll be definitely worth your time checking it out.
Maintaining a budget (proper cash-flow) within your means is sometimes hard enough. Most people have a vague idea of where their money usually goes – And for many times, the outcome isn’t as what they think it is. Creating a monetary system is recommended – Itemized income and expenses. The more closely you monitor the cash-flow, the better optimized your financial budget is. Among the seven (7) simple steps are:
- Choosing a financial system
The best way to stay on track with your income and expenses is to actually track it. Banking online will be great help, but for more control and review over your expenditures and income, try financial software like Microsoft Money. - Determine your income(s)
A more accurate way to estimate your budget is to calculate earnings over a long period of time. Always include all of your income sources: Wages, bonuses, dividends, pensions, interests, tax refunds and so forth. Be sure that you’ll receive that income; if not, put that in your ‘Pending’ pay-book note or in another file. - Determine your expenses
Take into account your “Variable”, “Fixed” and “Discretionary” costs. Variable expenses are defined as committed ‘changeable’ expenses such as groceries, credit card and medical bills; Fixed costs are expenses defined as a committed fixed rate to pay such as taxes, home loans, education savings and so forth; Discretionary costs are expenses defined as ‘extra spending’. For example, magazines, dining out, movies, concerts and football matches. - Compare income and expenses
If your expenses are higher than your income(s), rectify this problem first. Always look at your financial statuses over a period of months, then evaluate your spending by thrashing out extras to pay off high interest debts first (credit cards). Borrowing money for personal use is never the way to go – Only buy what you can afford. - Determine your goals
Set your goals – Whether you’re saving for children’s education, retirement, or paying off someone else’s debts. If you need to reduce your Discretionary expenses, make it clear: Reduce the number of eat-outs from 3 times a week to 2, go for a movie twice a month rather than 4 times a month. - Improving and improvising
After setting your goals, you need to detail your budget and find solutions to clear the situation at hand. The best way to improve the situation is to ask yourself a few questions: Are some items actually my needs or is it disguised as a need? Did I spend more on beers or cigarettes this month? Am I not claiming taxes that I can? Ask yourself this question and rectify the problem immediately. Don’t delay or you’ll see a huge loss figure at the end of your ‘evaluation’ period. - Monitor and evaluate
Stay on track with point 1-6 and justify the value of your financial status. Should there be any extra problems, run through steps 1-6 again. Adjust your budget(s) efficiently so that you can have enough for future investments.
Use our home loan calculator to optimise your budget.
Malaysia Home Loan – Improving approval chances
Tuesday, December 30th, 2008
Malaysia home loans are easily acquired, provided that you service your debts in a timely fashion and in good will. This is what you call the debt service ratio (DSR). Your DSR is an estimated ratio of debt payments to disposable personal income, which also represents your ability to handle your current debt(s) accordingly. Debt payments consist of estimated required payments on outstanding mortgage and consumer debt. So the lower your DSR percentage is, the better your chances are at getting home loan approvals.
An average of 40% DSR is what majority financial institutions would accept, some up to 60% and some as high as 30% for Malaysia home loans. Factors affecting DSR percentage includes credit repayment track record and favourability of the collateral. Among the ways to improve chances of getting a Malaysia home loan approved are: (more…)