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Hong Leong Flexi Mortgage

With the new Hong Leong Flexi Mortgage, you can now qualify for a bigger loan amount of up to 15% more. Thus, allowing you to own a bigger home at a better location today. Best of all, you can enjoy smaller monthly instalment, thanks to its bullet payment feature.

  1. What is Hong Leong Flexi Mortgage?
    Hong Leong Flexi Mortgage is a conventional term loan that comes with a bullet payment feature at the end of the loan tenure.
     
  2. What is a bullet payment?
    A bullet payment feature allows a portion of the principal to be paid at the end of the loan tenure.
     
  3. How does the bullet payment feature works?
    A portion of the principal repayments are deferred (up to 35% of the loan amount) to the end of the loan tenure in the form of a final instalment.
     
  4. What are the main benefits of Hong Leong Flexi Mortgage?
    • Enable homebuyers to own a better home today
    • Allow homebuyers to take up a bigger loan amount and subsequently a bigger home
    • Allow homebuyers to enjoy a smaller monthly instalment and lesser burden to the customer.
       
  5. Can you clarify how do you get a bigger home and smaller instalment?
    The bullet payment feature with principal deferment in the monthly instalment will result in smaller monthly instalment and enable you to take a higher loan amount and thus, allowing you to afford a bigger home;

    Example 1
     
    Conventional Term Loan
    Hong Leong Flexi Mortgage
    Loan Amount (RM)
    250,000
    270,000
    Monthly Instalment
    1,483
    1,361
    Bullet Payment
    -
    96,317

    *Based on BLR-1.80% interest rate, 20 years loan tenure and BLR at 5.55%

    Example 2
     
    Conventional Term Loan
    Hong Leong Flexi Mortgage
    Loan Amount (RM)
    250,000
    294,000
    Monthly Instalment
    1,483
    1,483
    Bullet Payment
    -
    94,306

    *Based on BLR-1.80% interest rate, 20 years loan tenure and BLR at 5.55%

    Example 3
     
    Conventional Term Loan
    Hong Leong Flexi Mortgage
    Loan Amount (RM)
    300,000
    353,000
    Monthly Instalment
    1,779
    1,779
    Bullet Payment
    -
    113,376

    *Based on BLR-1.80% interest rate, 20 years loan tenure and BLR at 5.55%
     
  1. How do I calculate the bullet payment?
    Using the Flexi Mortgage calculator, our Personal Financial Consultant will be able to guide and advise you the bullet payment amount depending on the information provided i.e. loan amount, loan tenure etc.
     
  2. Does this mean there is no interest charged on the bullet payment?
    No, interest is still being charged on the full loan amount, similar to any conventional term loan.
     
  3. What is the interest rate charged?
    The interest rate charged is as per our current board rate which will be revised from time to time.
     
  4. Is interest calculated on monthly basis or daily basis?
    Interest is calculated on daily basis.
     
  5. Does this mean I can get 100% financing for my home loan?
    No, the standard financing guidelines of up to maximum margin of 90% + 5% (MRTT/MDTA/Legal Fee/Valuation fee) apply.
     
  6. What is the maximum loan tenure?
    A maximum of 20 years loan tenure or age of 60 whichever is lower.
     
  7. What is the minimum loan tenure?
    Minimum loan tenure must be 5 years.
     
  8. Is there a minimum loan amount?
    A minimum loan amount of RM100,000 and property value must be more than RM200,000.
     
  9. Is this package applicable to commercial property?
    No this package is applicable only to Residential Property.
     
  10. Why is this not available for Non-Residential properties?
    This product is designed for homebuyers, as we believe they will be benefit the most from this product.
     
  11. Is there any additional Terms and Conditions, Fees, Penalties etc for this product?
    No.
     
  12. What is the holding period?
    There is no change to the 5 years holding period and penalty of 3%; customer can settle the loan after the holding period.
     
  13. Is this product available for Islamic Financing?
    No, as of December 2009, this product only applies to conventional loan.
     
  14. Can an existing customer convert his loan to Hong Leong Flexi Mortgage?
    No, this feature is currently not available.
     
  15. What is the difference between taking a 20-years bullet payment vs. a 30-years conventional term loan?

     
    Conventional Term Loan
    Hong Leong Flexi Mortgage
    Loan Amount (RM)
    250,000
    250,000
    Monthly Instalment
    1,158
    1,260
    Bullet Payment
    -
    80,264
    Total Instalment
    416,880
    382,664

    *Based on BLR-1.80% interest rate; 20 years loan tenure for bullet payment; 30 years for conventional and BLR at 5.55%

     
  16. If I decide to pay more than the instalment determined, can I do so ?
    Yes you can. Any amount above the monthly instalment will be treated as advance payment, similar to a conventional term loan.
     
  17. Will my additional payment in the advance payment reduce the interest payment?
    Yes it will be. Any amount in advance payment will be used to reduce interest charged on daily basis.
     
  18. Can I perform a prepayment?
    Yes, you can subject to one (1) month notice to the bank.
     
  19. What will happen if I cannot afford to settle the bullet payment upon maturity?
    You may choose to restructure and convert your loan to a conventional loan upon maturity but it will be subject to credit policies.
     

 

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