Purchase of House 2

I went to Kampung Jawa Public Bank to sign my loan offer letter just now. This week will be my end of 14-day period as stated in my contract with the house owner whereby he cannot sell his house to third party within this period without any penalty.

Since Bank Negara Malaysia (BNM) announced that the Base Rate (BR) is reduced by 0.25% last month, so Public Bank starts this reduction in February 2020. Thus, my mortgage loan interest rate will be BR+0.7%. 

Today was Ms Lim who serves me. She was good and patient as she explained all the terms and conditions with me. I told her that their rate was not the lowest yet as Maybank offered me 4.3% without MRTA and 3.8% with MRTA. This was the rate last month, thus now should be lesser. Furthermore, their MRTA just costs about RM500 instead of RM5,000 as stated in Public Bank. She was shocked.

Thereupon, my instalment will be RM890 per month instead of RM920 monthly as stated previously. However, this rate will increase if the BR changes again. If BR has increased by 1%, then my loan instalment will be RM1010 per month. 

Last time, the BR of Public Bank was 3.52% but now due to the reduction, it's 3.27%. Therefore, I am enjoying the rate of 3.97% now but it is subjected to change. My MRTA just about RM750+. I'll buy the MRTA from them to enjoy lesser interest rate. However, I still need to submit my apartment's fire insurance from my apartment's committee to them yearly. 

My house's valuation fee is waived since the house owner also took the loan from Public Bank but the processing fee of RM200 for those loan above RM100,000 cannot not be waived since my loan was RM200,000. I cannot make full early settlement in three years without any penalty but I can dump in some money. I can withdraw the dumped in money from the bank next round with minimum of RM5,000 per time. Each withdrawal will cost RM50. I need to apply for Public Bank credit card too. Thereupon, I asked for cashback credit card offer. Now I'm just waiting for the offer.

So I had signed the offer letter, hopefully everything runs smoothly now and I can get my home by this month. Hopefully the lawyer will call me for appointment with the house owner this week in his office.