Malaysia Mortgage Loan: What is Flexible Mortgage Loan?

Flexible Mortgage Loan bringing together your mortgage, current account, savings into single account that can help you make your money work harder and reduce the amount of interest you pay on your borrowing. It’s very simple, but the effect it can have on your borrowing can be amazing if you done it correctly.

Reduce the interest you pay on your mortgage
Just by deposited your income and savings into the same account as your mortgage loan, you’re reducing your mortgage balance, as result, you only pay interest on the lower amount of your outstanding of your mortgage. This could save you a fortune over time and help cut years off your mortgage. And as the flexible home loan account is like a normal current account, you can get hold of your cash anytime you like. It’s the same with your savings – when you need them, they’re there.

Repaying your mortgage early
When you take out a mortgage, it’s not the rate you pay that’s important. What matters is the total amount of interest you pay over the time you’re borrowing. With the flexible mortgage loan, you use your income and savings to reduce your borrowings and minimize your interest payments. This means more of your money each month goes towards repaying the money you owe, helping you repay your mortgage years earlier and save thousands of dollars in interest costs.

Get complete flexibility in managing your finances
Because the mortgage loan account is so flexible, you can overpay to clear your mortgage quicker, or underpay or even take a break from your payments if you need to to do – without having to juggle your finances or leave yourself short. Plus some of flexible home loan even give you an agreed borrowing limit (your ‘facility’) that you can withdraw up to at any time, just like a pre-agreed overdraft. As long as you repay your mortgage by the time you retire and stay within your borrowing limit, how you run your account is up to you.

Source: BLR