Q: What is Hong Leong MortgagePlus(HL MortgagePlus)?
A:Hong Leong MortgagePlus is a mortgage product that combines a term loan with transactional freedom of a current account.
Q: Does it mean that I have to open two types of accounts for HL MortgagePlus?
A: Yes. For every HL MortgagePlus account, you shall open /maintain the following accounts with HLB:-
(I) a HL MortgagePlus loan account (term loan)
(II) a non-interest bearing current account which is linked to (I) above.
Q:. How does Hong Leong MortgagePlus works?
A: Hong Leong MortgagePlus link your loan account directly to your MortgagePlus current account, whereby the credit balance in your current account will automatically help to give you greater savings on interest.
Q: Please show me how interest is computed and the difference between a conventional term loan to HL MortgagePlus?
A: A simple illustration
Based on the following assumption:-
- Loan outstanding balance: RM500,000 (debit)
- Current account available balance: RM80,000 (credit)
- Interest rate: 6.75% p.a.
- Daily rest basis
- No change to the loan & current account position for 30 days (a month)
Workings on Interest computed for 30 days:-
Q: How much do I save when comparing a traditional / conventional loan type to a HL MortgagePlus type? Show me.
A: As per above illustration:-
RM2,465.75 less RM2,071.23 = RM443.84 / a month
Q: What are the key benefits of Hong Leong MortgagePlus?
Cost savings on interest - With the concept in (3) and as illustrated in (4) above, whenever you deposit or save into your current account, your loan interest will be reduced.
Ability to pay-off loan faster - With lower interest cost payable, the loan tenure will be shorten, thus allowing you to own your home sooner.
Flexibility - Make extra payments and withdraw from your current account without having to apply or worry on unnecessary charges or penalties.
Accessibility - Easy access to funds in your current account via branch, cheque book, ATM and internet banking
Convenience - Manage all your banking transactional needs and at the same time optimize on interest savings when you consolidate your funds into one account
Q: Other than the cost savings on interest, how else do I benefit from HL MortgagePlus? Will the loan tenure be affected?
A: When you pay less interest for an instalment, more of your loan principal will be paid off. This will result in your loan tenure shorten.
Q: Will it be more beneficial to leave my savings in FD to earn interest or transfer the amount to MortgagePlus current account?
A: With HL MortgagePlus loan, you'll be savings on higher rate if the rate chargeable on loan is higher than FD rates.
Please see illustration* below:-
- Traditional housing loan:
Housing loan RM500,000 x 6.75% p.a. = RM 33,750
Fixed deposit RM 80,000 x 3.70% p.a. = RM 2,960
Net annual interest payable = RM 30,790
MortgagePlus account RM500,000
Current account bal account RM 80,000
Integrated bal for
Interest computation RM420,000
Net annual interest payable = RM420,000 x 6.75%
Difference (annual interest payable) =RM 30,790 - RM28,350
(*Note: Above workings are for illustration purpose only. Workings are built on simple assumption of loan amt of RM500,000 calculated at loan rate of 6.75% while FD rate is on 3.70%)
Q: Who is eligible to apply for HL MortgagePlus?
Q: What about sole-proprietor, partnership & corporates? Can these entities apply for HL MortgagePlus?
A: No, as HL MortgagePlus applies to individuals only.
Q: Will I be assigned with two different account numbers and how do I repay the loan?
A: Yes. You will be assigned with two different account reference. One for your MortgagePlus loan and the other for your MortgagePlus current account.
For repayment of loan, you have to sign up Standing Instructions on your current account to automate the transfer of interest / instalment / maintenance fee from you current account to your loan account.
Q: What is my initial opening amount for the current account?
A: Initial amount for opening of account is RM500.
Q: Will I be given a cheque book for the current account?
A: Yes, you will be given a cheque book.
Q: Can I use my existing current account for HL MortgagePlus?
A: Yes, provided the current account is a non-interest bearing type with no existing facility. It can be converted to MortgagePlus current account type.
Q: If I have spare cash deposited in my Savings or FD, will the amount be taken in for purpose of daily interest computation ?
A: No, the link is only to the designated MortgagePlus current account.
Q: Do I have to withdraw and transfer the Savings / FD amount into my MortgagePlus current account to enjoy savings on my loan interest if I want to ?
A: Yes, if you want to maximize on interest savings.
Q: When do I need to open the HL MortgagePlus current account ?
A: Upon acceptance of Letter of Offer.
Q: How do I repay my loan? What mode?
A: With the Standing Instruction which you have signed up on your current account, your repayment will be automated so long as you continue to maintain sufficient funds in your current account. However, if you have insufficient funds in your current account and depending on situations, you may be advised by HLB to pay directly into your MortgagePlus loan account.
Other hassle free payment with:
- MEPS IBG/Internet Banking (e.g. www.hongleongconnect.my)
Alternative payment methods are:
- ATM transfer to your loan account
- Bank in to your loan account via Cash Deposit Machine
- Cheque deposit at the Cheque Deposit Machine*
- Make your payment at the nearest branch*
* Important: From 2 Jan 2015, RM0.50 processing fee will be charged per cheque issued
Q: What is the minimum loan amount allowed for HL MortgagePlus?
Q: Does HL MortgagePlus apply to construction or completed or BOTH types of property financing?
A: Applicable to construction or completed residential and non-residential properties.
Q: What type of Statements will I be receiving?
A: Two different statements i.e. Monthly statement on MortgagePlus Current account and Half-yearly loan statement for MortgagePlus loan account.
Q: Can I switch my housing loan account from another bank to HLB?
Q: If I have an existing housing loan (not HL MortgagePlus), can I apply for a HL MortgagePlus for my next purchase of property?
A: Yes, you may, provided your financing terms meet HLB's criteria.
Q: Where can I apply for HL MortgagePlus, if I am interested?
A: You may visit the nearest Hong Leong Bank branches or call our Call Centre to speak to our Customer Relationship Officer at 1-800-38-8888.Alternatively, you may apply on-line through www.hlb.com.my.
Q: What are the documents to sign?
A: As per current practise i.e. application form, Letter of Offer, Facility Agreeement & etc.
Q: Can I take up MortgagePlus to finance purchase for bungalow land or land?
Q: Is the MortgagePlus current account subject to DCHEQS guidelines?
A: Yes, the customer's current account will be closed if he / she incur 3X bad cheque offence.
Q: What happens when MortgagePlus current account is closed due to reason of the customer's current account will be closed if he / she incur 3X bad cheque offence.
A: Upon closure of account, customers will not enjoy the benefits on integration of balances as stated in Q3 above.
Q: What are the other "PLUS POINTS" on HL MortgagePlus?
A: HL MortgagePlus provides:-
- Attractive Rates