Here are some compelling reasons why you should go Flexi
For most people, the process of purchasing a home can be a complex and daunting undertaking. There sometimes appears to be many separate components that are working simultaneously to make it happen, and making the right choice for each of them can be quite scary when you consider the cost and amounts that are at play.
A key component of the entire process is selecting the right loan provider and more specifically the right loan type for your dream home. In this article, we argue the five benefits of selecting a Flexi Home Loan when purchasing your home.
1.Flexibility in deposit and withdrawal of their fund
A flexi home loan offers you upsides on both good and rainy days. On good days, when you have excess funds, you can deposit it into your Flexi Home Loan to lower your interest cost, while if you encounter ‘rainy’ days and desperately need some funds to tie you over, you can also withdraw from the money you’ve deposited before, should you need it. Fixed home loans would not offer you this flexibility.
2. Potentially lower interest rates over a period
The economy can be unpredictable and uncertain in these times. A Flexi Home Loan can offer you some silver linings in these times. For one, with central banks slashing interest rates to encourage overall spending among people, a Flexi Home Loan account will adjust their interest rates based on what is the interest rate determined by the central bank at any given moment. This means you could enjoy lower interest rates and reduced instalment rates when this happens. A fixed-term home loan will not adjust its rates like this.
3. Interest can be reduced with higher deposits in Flexi Current Account
There are benefits of depositing any additional cash you have into your Flexi Home Loan on those ‘good’ days. Mainly this is done by depositing additional cash above your monthly instalments into a current account that is linked to your loan account, that’s how you can reduce the loan interest.
Meaning if you took a Flexi Home Loan for RM 700k and you parked RM 500k into the current account that is linked to your loan account, interest calculations done will be based on the net loan balance amount of RM 200k. This will help the borrower save interest costs.
And as we’ve already mentioned, you could still withdraw from the RM 500k you deposited should you need it. It’s as close as you will ever get to ‘having your cake and eating it too’, as far as housing loans go.
4. It is really simple and hassle-free to withdraw from your loan account
There may be an impression that trying to withdraw from a loan account may be cumbersome and possibly will take a long time to process before you see the actual money. The truth is, with Flexi Home Loan accounts, it’s just as easy as handling a savings account. You can transfer and move funds through common platforms such as online banking and ATM. It’s really that easy. You won’t have to fill up a pile of forms, go through a rigorous approval process just to access your money.
5. Attractive housing loan rates
A lot of banks are introducing very enticing rates to attract customers to take up a Flexi Home Loan with them. This is something you can factor into your decision on what type of home loan to take. For example, at the competitive rates they are offering now, Bank of China Malaysia (BOCM) would be a good place to start.
In conjunction with the recent launch of their Flexi Home Loan product, BOCM is running a campaign until 30 June this year offering an attractive housing loan rate of 3.55% p.a. for the first 2 years, with the subsequent year being 3.75% p.a. Given the amount usually involved with a housing loan, this would translate to the savings you can spend on other parts of your home.
The product is also tailored to be suitable for individual customers here in Malaysia. For more information on who is eligible and what you would need to kickstart the process, visit Bank of China Malaysia Website.
If you have questions and need certain things clarified, call 03-23878232/03-23878815 or visit any of their branches nationwide.