Blog 2020

11 Soalan lazim mengenai penangguhan bayaran balik pinjaman oleh BNM

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Written by Miichael Yeoh for iProperty

 

*Artikel ini telah dikemaskini pada 8 Mei 2020.

Berikutan wabak COVID-19, Bank Negara Malaysia (BNM) telah memulakan program penangguhan pembayaran pinjaman bagi membantu para peminjam. Artikel ini membantu anda memilih penyelesaian yang sesuai untuk selepas tamatnya moratorium 6 bulan ini.

© miodrag ignjatovic | Getty Images

Baru-baru ini Perdana Menteri Tan Sri Muhyiddin Yassin mengumumkan peminjam individu dan SME akan menikmati moratorium pinjaman automatik selama enam bulan bermula 1 April 2020. Langkah ini dipuji sebagai wajar memandangkan ramai rakyat Malaysia kini hilang pekerjaan, diarah mengambil cuti tanpa gaji atau dipotong gaji, manakala banyak SME pula terpaksa gulung tikar. Sesungguhnya cuti pinjaman ini amat membantu mereka yang berdepan masalah kewangan akibat kehilangan punca pendapatan. Wang yang dapat dijimatkan boleh digunakan untuk membeli keperluan seperti makanan dan barang keperluan ruma

Kemaskini terbaru setakat 6 Mei 2020 – Untuk pinjaman sewa beli (konventional & pembiayaan Islam berkadar tetap)

Berita terbaru yang kami terima – peminjam yang membuat pinjaman sewa beli TIDAK perlu membayar faedah tambahan semasa tempoh moratorium enam bulan, berdasarkan pengumuman terbaru daripada Kementerian Kewangan pada 6 Mei. Ini bermakna tidak akan ada sebarang perubahan pada pembayaran ansuran selepas tempoh moratorium tamat dan hanya tempoh pembayaran semula akan dilanjutkan selama enam bulan.

© Ministry of Finance

Pengumuman terbaru ini merupakan satu perubahan pada pengumuman oleh Bank Negara Malaysia (BNM) pada 30 April yang menyatakan faedah pinjaman bagi sewa beli dan pembiayaan Islam berkadar tetap akan terakru dan terkumpul semasa tempoh moratorium enam bulan. Menurut satu contoh pengiraan yang disediakan oleh BNM, faedah terakru ini akan menghasilkan kenaikan 2% dalam ansuran bulanan bermula Oktober 2020 dan seterusnya. Mujurlah bagi peminjam, perkara ini kini tidak lagi akan berlaku.

Kami faham jika anda sedikit keliru akibat bolak-balik dalam hal ini sepanjang beberapa minggu lepas – sila rujuk Q6 dan Q7 untuk maklumat terkini.

1. Apa itu moratorium automatik?

Secara ringkasnya, moratorium automatik boleh dikira sebagai penangguhan pinjaman. Menurut kamus, moratorium adalah kebenaran yang diberi, biasanya melalui undang-undang yang diluluskan semasa darurat, untuk menangguhkan pembayaran wang oleh bank atau negara penghutang.

Dalam hal ini, pembayaran pinjaman oleh seseorang (yang mencakupi prinsipal dan faedah) ditangguh selama 6 bulan seperti yang diumumkan Bank Negara Malaysia. Peminjam tidak perlu mengambil sebarang tindakan kerana moratorium ini akan diberi secara automatik. Walau bagaimanapun, jika peminjam memilih untuk membayar ansuran seperti sediakala, mereka boleh berbuat demikian dengan memaklumkan bank. Ambil perhatian bahawa pinjaman yang telahpun mungkir selama lebih 3 bulan tidak layak untuk mendapat penangguhan ini.

2. Siapakah yang layak dan boleh memohon?

Semua rakyat Malaysia individu dan SME layak secara automatik. Moratorium ini mencakupi kesemua jenis pinjaman, daripada sewa beli kepada pinjaman peribadi dan perumahan dan sebagainya. Pengecualian diberi kepada kad kredit yang diberi layanan berbeza.

3. Bagaimana dengan pinjaman yang diperolehi daripada pemberi pinjaman wang berlesen?

Untuk layak mendapat moratorium, institusi kewangan terbabit mestilah berdaftar dengan BNM. Malangnya pemberi pinjaman wang berlesen tidak termasuk dalam kategori ini.

4. Adakah ini bermaksud peminjam tidak akan dikenakan faedah selama 6 bulan tersebut?

Tidak, moratorium ini hanyalah satu penangguhan. Anda masih PERLU membayar faedah terakru selepas tempoh 6 bulan tersebut. Terdapat beberapa opsyen pembayaran yang boleh anda pilih bergantung pada bank. Semua ini akan kita bincangkan dengan terperinci di bawah.

5. Bolehkah moratorium ini dilanjutkan selepas tempoh 6 bulan?

Peminjam yang memerlukan lanjutan moratorium boleh memohon dengan bank mereka dengan alasan munasabah menunjukkan mereka terjejas akibat wabak COVID-19, berserta bukti yang boleh ditentusahkan yang pasti akan diminta oleh bank. Kelulusan untuk lanjutan moratorium boleh mengambil masa antara 3 hari hingga 2 minggu bergantung pada bank. Oleh itu, permohonan perlu dibuat sebelum tempoh moratorium berakhir.

6. Bagi pinjaman sewa beli & pembiayaan Islam berkadar tetap, bagaimanakah pembayaran semula akan dikira dan adakah ansuran bulanan saya akan berubah selepas tempoh penangguhan?

Faedah ke atas pinjaman (sewa beli) Islam berkadar tetap akan kekal tetap kerana mematuhi prinsip Shariah; faedah bagi pinjaman sewa beli konventional juga tidak akan dikenakan faedah sepanjang moratorium 6 bulan itu. Faedah juga tidak akan terkompaun (penjelasan lanjut mengenai perkara ini di bawah). Ini bermakna faedah tidak akan diakru atau dinaikkan dan amaun ansuran bulanan anda akan kekal seperti sediakala selepas Oktober 2020. Satu-satunya perubahan yang akan berlaku adalah tempoh pinjaman atau “loan tenure” akan dilanjutkan.

Sebagai contoh, katakan selama ini anda membayar RM1,200 setiap bulan untuk pinjaman sewa beli kenderaan sedia ada dan pinjaman anda bakal habis dibayar pada Disember 2021. Anda akan terus membayar RM1,200 bermula Oktober 2020 sehingga pinjaman habis dibayar iaitu kini menjadi Jun 2022 selepas ditangguh enam bulan. Selain itu, tiada sebarang faedah atau caj tambahan yang perlu dibayar.

Anda disarankan membuat penilaian sama ada mereka perlu mengambil moratorium 6 bulan ini atau tidak. Jika kewangan anda baik, adalah lebih bijak jika anda memberi masa sebelum menerima tawaran moratorium dan menyelesaikan sebarang tunggakan yang belum diselesaikan sejak April 2020 (rujuk Q9).

Pastikan anda menghubungi atau e-mel bank anda untuk maklumat lanjut atau jika anda perlu merundingkan perjanjian pembayaran alternatif.

7. Sebelum ini, pengumuman mengatakan penangguhan pembayaran selama 6 bulan untuk pinjaman sewa beli & pembiayaan Islam berkadar tetap adalah secara automatik. Adakah keputusan ini telah diubah?

Penangguhan pembayaran masih automatik bagi pinjaman sewa beli dan pembiayaan Islam berkadar tetap. Peminjam tidak perlu memohon moratorium. Apa yang diperlukan hanyalah satu langkah tambahan bagi mematuhi keperluan prosedur di bawah Akta Sewa Beli 1967 dan shariah. Langkah tambahan ini diperlukan bagi memasukkan perubahan ke dalam jadual pembayaran dan/atau amaun disebabkan kesan penangguhan terhadap perjanjian pinjaman.

Peminjam hanya perlu melengkapkan dokumentasi yang diperlukan bagi memberi kuasa undang-undang kepada moratorium. Peminjam akan dimaklumkan tentang langkah-langkah berikutnya oleh bank masing-masing sama ada melalui SMS, e-mel atau mel berdaftar. Berikut adalah satu contoh SMS daripada bank meminta pengesahan pelanggan untuk meneruskan dengan moratorium pinjaman:

©Miichael yeoh

BACA: Apakah yang dimaksudkan dengan Untung Terakru, Kadar Rata (Fixed Rate), Baki Berkurangan (Reducing Balance)?

8. Saya belum membuat sebarang pembayaran bulan April kerana saya tidak menarik diri (opt out) awal-awal daripada penangguhan. Jika saya memilih untuk opt out sekarang, adakah saya akan dikenakan caj pembayaran lewat? Apakah kesannya terhadap rekod CCRIS saya?

Tidak, bank tidak akan mengenakan caj pembayaran lewat kepada peminjam yang memilih untuk opt out daripada penangguhan sekarang. Bank akan memaklumkan anda mengenai rangka masa yang disediakan bagi membayar ansuran yang tertangguh sejak 1 April 2020. Rekod CCRIS anda tidak akan terjejas selagi anda menyelesaikan amaun ini dalam rangka masa yang dimaklumkan bank anda.

9. Faedah kompaun vs tak kompaun – apakah perbezaannya?

Setelah jelas mengenai apa itu moratorium automatik, kita lihat pula isu yang membingungkan ramai peminjam. Kedua-dua jenis faedah ini akan bertambah dengan peredaran masa, namun ada perbezaan ketara antara keduanya.

bannosuke | 123rf

Secara ringkas, faedah tak kompaun hanya akan dibayar ke atas prinsipal pinjaman, manakala faedah kompaun dibayar ke atas kedua-dua prinsipal dan kesemua faedah yang sebelumnya. Biasanya pinjaman perumahan konvensional menggunapakai faedah kompaun, manakala produk gadai janji Islam yang berlandaskan prinsip pinjaman tanpa faedah tidak mengkompaunkan kadar faedahnya.

Sebagai contoh, kita membuat anggapan anda mempunyai amaun pinjaman perumahan sebanyak RM500,000 yang mempunyai kadar pinjaman efektif (Effective Lending Rate atau ELR) 4.5% dan setiap bulan ada 31 hari.

Amaun Pinjaman (LA) : RM500,000
Kadar Pinjaman Efektif (ELR): 4.5%

Caj Faedah = (LA x ELR)/365 hari x 31 hari
Ansuran Bulanan Awal = (RM500,000 X 4.5%)/365 hari X 31 hari = RM1,910.95

Pinjaman dengan Faedah Kompaun

BULAN FAEDAH TERAKRU (RM)
Januari RM1,910.95
Februari RM1,918.26
Mac RM1,925.59
April RM1,932.95
Mei RM1,940.34
Jun RM1,947.76

Jumlah Faedah Terkumpul = RM11,575.52

Dengan faedah kompaun, bank akan menambah faedah ke atas kedua-dua prinsipal dan amaun faedah yang sebelumnya, atau dipanggil faedah atas faedah. Dalam hal ini, ia akan menjadikan jumlah faedah untuk 6 bulan sebanyak RM11,575.52.

Pinjaman tanpa Faedah Kompaun

BULAN FAEDAH TERAKRU (RM)
Januari RM1,910.95
Februari RM1,910.95
Mac RM1,910.95
April RM1,910.95
Mei RM1,910.95
Jun RM1,910.95

Jumlah Faedah Terkumpul = RM11,465.70

Bagi faedah tak kompaun, caj yang dikenakan adalah tetap setiap bulan kerana ia hanya dicaj pada amaun prinsipal. Maka jumlah faedah untuk 6 bulan adalah RM11,465.70.

Beza antara faedah kompaun dan tak kompaun hanya RM114.15. Ini bukan jumlah yang besar bagi satu pinjaman RM500,000. Tambahan pula bank-bank di Malaysia telah mengumumkan tidak akan mengkompaun kadar faedah dan keuntungan ke atas pinjaman semasa tempoh penangguhan.

Yang perlu diberi perhatian oleh pengguna adalah apa yang berlaku SELEPAS tamatnya moratorium. Teruskan membaca.

10. Bagaimanakah sepatutnya saya selesaikan ansuran bulanan selepas tempoh penangguhan tamat? 

NOTA: Pilihan yang dikemukakan di sini adalah untuk pinjaman dengan faedah kompaun. Untuk pembiayaan Islam yang mengharamkan penggunaan keuntungan kompaun, ansuran bulanan akan kekal sama bagi kesemua pilihan pembayaran. Peminjam hanya perlu membayar faedah yang terakru sepanjang tempoh penangguhan 6 bulan.

© Juthamat Yamuangmorn/ 123rf

Berikut adalah tiga pilihan popular yang boleh didapati di kebanyakan bank. Perlu diingat mungkin ada lagi pilihan lain:

1. Naikkan ansuran bulanan bermula Oktober 2020 dan seterusnya

Caj faedah terkumpul daripada tempoh penangguhan 6 bulan akan diagihkan ke seluruh baki tempoh pinjaman. Dengan menggunakan contoh di atas, RM11,465.70 akan terakru ke atas pembayaran semula bulanan anda yang berbaki dalam bentuk peningkatan sedikit pada ansuran bulanan anda untuk yang seterusnya.

Di bawah ini disertakan contoh daripada BNM menunjukkan satu pembayaran semula pinjaman perumahan selepas 6 bulan penangguhan, tanpa lanjutan tempoh pinjaman:

© bnm.gov.my

Pada pendapat saya, ramai orang akan memilih penyelesaian ini.

2. Panjangkan tempoh pinjaman

Jika anda ingin mengekalkan amaun ansuran bulanan, anda boleh memilih untuk memanjangkan tempoh pinjaman. Walau bagaimanapun, perkara ini adalah subjektif kerana ia bergantung pada banyak pemboleh ubah pengiraan mengikut pinjaman masing-masing. Rujuk dengan bank anda. Tempoh lanjutan mungkin lebih daripada 6 bulan. Jika ini halnya, pilihan ini tidak lagi munasabah kerana anda akan membayar faedah yang lebih tinggi dalam jangka panjang.

Jika tempoh pinjaman anda sudah pun pada tahap maksimum iaitu 35 tahun menurut BNM, bank akan memilih Pilihan 1 secara lalai untuk anda. Anda boleh menghubungi bank untuk membuat rayuan.

3. Kekalkan kedua-dua di atas dan buat pembayaran lump sum untuk faedah terakru selama 6 bulan

Untuk pilihan ini, anda boleh mengekalkan tempoh pinjaman dan tidak perlu membayar ansuran lebih tinggi selepas Oktober 2020. Anda hanya perlu membayar ansuran yang terakru secara lump sum pada Oktober 2020 di samping pembayaran semula yang biasa.

Ini mungkin agak sukar untuk dilakukan kerana anda perlu menyediakan wang kira-kira tujuh kali ganda nilai ansuran bulanan anda.

4. Kekalkan kedua-dua di atas dan sebahagian amaun prinsipal ditangguhkan ke pembayaran ansuran terakhir

Bagaimana ia berfungsi: bank akan melaraskan pembayaran ansuran bulanan anda bermula Oktober 2020 dan seterusnya dengan menaikkan bahagian faedah pembayaran anda. Oleh kerana amaun ansuran bulanan dikekalkan, amaun prinsipal akan ditangguhkan ke pembayaran ansuran terakhir di penghujung tempoh pinjaman anda. Dalam kata lain, anda akan membayar amaun yang lebih tinggi pada pembayaran ansuran terakhir anda kerana termasuk amaun prinsipal yang masih belum dijelaskan ini.

11. Bolehkah wang hasil penangguhan ini digunakan untuk pelaburan?

Mereka yang tidak menghadapi kesempitan wang mungkin berkira-kira untuk menggunakan wang hasil penangguhan ini untuk pelaburan, walaupun sepatutnya kita semua perlu berhati-hati dalam situasi ekonomi global yang tidak menentu ini. Kebanyakan pakar ekonomi mengatakan kita kini di ambang kemelesetan.

Setelah meneliti semua perkara…

Mesej yang cuba kami sampaikan adalah anda perlu membayar segala hutang piutang dengan memilih penyelesaian paling sesuai dengan situasi kewangan anda. Saranan kami adalah (1) dan jika anda mampu menanggung pembayaran semula bulanan anda dalam tempoh sukar ini, jangan ambil moratorium dan kekalkan perjanjian pinjaman sedia ada, daripada membayar faedah pada Oktober 2020.

Walau dengan panduan Q&A yang komprehensif sekalipun, pasti akan ada persoalan yang belum terjawab. Maka rujuklah kepada bank anda dan baca FAQ mereka. BNM mungkin telah memberi arahan menyeluruh mengenai moratorium, tetapi setiap bank ada garis panduan mereka sendiri.

Disunting oleh Reena Kaur Bhatt

Blog 2020

BNM’s 6-months loan moratorium: What is it and how it can help you?

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Written for iProperty

*This article was updated on 8 May 2020 – Refer to New Update para on Hire-purchase loans. 

In light of the COVID-19 outbreak, Bank Negara Malaysia  (BNM) has initiated a loan deferment program to give some relief to loan borrowers. We also help you decide what repayment option you should select after the 6 month ends.

 

© miodrag ignjatovic | Getty Images

Recently, our Prime Minister Tan Sri Muhyiddin Yassin, announced that individual borrowers and SMEs will enjoy an automatic loan moratorium for six months, starting from 1st April 2020 onwards.  This move is lauded to be in the right direction as many Malaysians are finding themselves out of jobs, put on unpaid leave or given a pay cut; while many SMEs are closing down. This loan holiday especially favourable for those who are in a financial bind due to loss in income. The freed-up money could be used to purchase necessities such as food and household items.

However, the automatic moratorium leaves a lot of confusion and unanswered questions in the air – While the terms may differ from bank-to-bank (and may be updated by banks from time-to-time), we have answered the most asked questions to help you understand the terms of this arrangement better, and what happens after.

New Update as of 6 May 2020 – For Hire-purchase loans (both conventional &  Fixed-rate Islamic financing)  

It is official – Borrowers of Hire Purchase loans (both conventional & Fixed-rate Islamic/shariah-compliant loans) will NOT have to pay any additional interest during the six-month moratorium period. As per the latest announcement from the Ministry of Finance on 6 May,  this would mean that there will not be any changes to the instalment payments after the moratorium period ends and that only the repayment period will be extended for six months.

This latest announcement is a reversal of the announcement made by Bank Negara Malaysia (BNM) on April 30, which stated that loan interest for HP and fixed-rate Islamic financing would now be accrued and accumulated during the 6-months moratorium. According to an example calculation provided by Bank Negara Malaysia, the accrued interest will result in a 2% increase in monthly instalment from October 2020 onwards. Fortunately,  for borrowers, this will not take place now.

According to Malaysia’s Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, the Ministry of Finance has acted on the government’s call on the banking industry to waive accrued interest charges and MOF have reached an agreement with the banking industry on this matter.

We understand if you are a little bit confused after the whole roller-coaster of events in the past week – please refer to Q6 and Q7 for the latest information.

1. What is an automatic moratorium?

In a nutshell, an automatic moratorium can be referred to as loan deferment; as defined by the dictionary – It is a legal authorisation, usually by a law passed in an emergency, to delay payment of money due, as by a bank or debtor nation.

In this case, one’s loan payment – which includes both principal and interest – is deferred for 6 months as per Bank Negara Malaysia’s (BNM) announcement. Borrowers need not take any action as it is automatically applied. However, if the borrower prefers to continue paying the loan instalment as usual, they can do so by informing the bank. Do take note that if your loan is already in default for over 3 months, it will not qualify for the deferment.

2. Who is eligible and who can apply?

All Malaysian individuals and SMEs are automatically eligible. It also covers all types of loans – from hire purchase to personal and home loans, and so on. The only exception is credit cards, which are treated differently.

3. What about loans borrowed from licensed money lenders?

To be eligible, it must be a financial institution registered with BNM. Unfortunately, credit companies or licensed money lenders do not fall under this category.

4. Does this mean that the 6 months are interest-free?

No it does not. It is only a deferment, which means that you WILL still need to pay the accrued interest after the 6-month period. Depending on the bank, there are a few repayment options you can choose from, which we will explore in detail below.

5. Can the moratorium be extended after the 6-month period?

Borrowers who require an extension can apply with their banks, by giving valid reasons on how they are affected by the COVID-19 pandemic, along with verifiable proof, which the banks will ask for. The approval for extension depends on the bank which may take anywhere from 3 days up to 2 weeks – therefore, it will be wise to apply for an extension before the moratorium ends.

6. For Hire purchase loans, how will repayments be calculated and will my monthly instalments change after the deferment period?

Interest for (Hire Purchase) fixed Islamic loans will remain fixed, as it follows Shariah principles. Meanwhile, interest for conventional hire purchase loans will also not be charged any interest and interest will also not be compounded (further explanation on compounding below). This means that your interest will not be increased, and your monthly instalment amount will remain the same after October 2020. The only difference is your tenure will be extended.

For example, say you have been paying RM1,200 each month for an existing car loan, and your loan is due in December 2021. You will continue to pay RM1,200 from October 2020 onwards until the end of your tenure, which is now June 2022 – having been extended by 6 months.  Other than that, you will not pay any extra interest or additional charges.

It is recommended that borrowers evaluate whether they need to take up the 6-month moratorium or not. Should you be financially capable, it will be prudent to pause the moratorium offer and clear any arrears you might have since April 2020 (Refer to Q9).

Please do call or e-mail your bank if you need more information, or if you need to discuss alternative payment arrangements.

7. It was previously announced that the 6-month payment deferment for Hire Purchase (HP) and fixed-rate Islamic financing is automatic. Has there been a reversal in this decision?

The payment deferment is still automatic for HP and fixed-rate Islamic financing – borrowers do not need to apply for the moratorium. What is required now is an additional step to comply with procedural requirements under the Hire-Purchase Act 1967 (HP Act) and Shariah. This additional step is required to incorporate the changes to the payment schedule and/or amounts as a result of the 6-month payment deferment in the loan financing agreement.

Borrowers only need to complete the documentation required to give legal effect on the moratorium – they will be advised by their respective banks on the next few steps either via text message, email or registered mail. An example of a text message from the bank asking you to confirm whether you would like to proceed with the loan moratorium is shown below:

© Miichael yeoh

8. I have not made any payment in April since I did not opt-out of the deferment earlier. If I decide to opt-out now, will I be charged any late payment penalty? What will happen to my CCRIS record?

No, banks will not impose any late payment charges on borrowers who decide to opt-out of the deferment now. Your bank will inform you of the timeframe provided to pay off the deferred instalments since 1 April 2020. Your CCRIS record will also not be affected, as long as you settle this amount within the repayment timeframe as notified by your bank.

9. Compounding vs Non-compounding interest – What’s the difference?

Now that we’ve established what an automatic moratorium means, let’s move on to another issue that’s baffling many borrowers. While both types of interest will increase over time, there is a big difference between the two.

© bannosuke | 123rf

Simply put, non-compounding interest is only paid on loan’s principal, while compounding interest is paid on both the principal and all of the previous interest. Usually, conventional home loans adopt a compounding interest while Islamic mortgage products which work on the basis of interest-free loans do not compound interest rates.

Let’s review an example – Here we assume that you have a home loan amount of RM500,000 which has an effective lending rate ( ELR) of 4.5% and that each month has 31 days.

Loan Amount (LA) : RM500,000
Effective Lending Rate (ELR): 4.5%

Interest Charge = (LA x ELR)/365 days x 31 days
Initial Monthly Instalment = (RM500,000 X 4.5%)/365 days X 31 days = RM1,910.95

Loan With Compounding Interest

MONTH Interest Charge Accrued (RM)
January RM1,910.95
February RM1,918.26
March RM1,925.59
April RM1,932.95
May RM1,940.34
June RM1,947.76

Total Interest Accumulated = RM11,575.52

With compounding interest, the bank will add on the interest upon both the principal and previous interest amount. It will be treated as interest upon interest. In this case, it will bring the total interest for 6 months to RM11,575.52.

NOTE: There was previously an error for the compounding interest calculation – it was mentioned that the whole repayment amount was added onto the principal (being owed )amount. This has been rectified – the error is deeply regretted. Refer to below for an example of what your home loan repayment will look like after the 6 months end. 

Loan With No Compounding Interest

MONTH Interest Charge Accrued (RM)
January RM1,910.95
February RM1,910.95
March RM1,910.95
April RM1,910.95
May RM1,910.95
June RM1,910.95

Total Interest Accumulated = RM11,465.70

For non-compounding interest, the charge is constant every month as it is only charged upon the principal amount. Therefore, the total interest for 6 months is RM 11,465.70.

The difference between compounding and non-compounding interest is only RM 114.15. It’s not a significant sum for a RM500,000 loan. Additionally, Malaysian banks have also announced that they will not compound interest and profit rates on their loans during the deferment period.

The thing which consumers should take note of is what they should do AFTER the moratorium period ends. Let’s look at this below.

10. How should you settle you

Are monthly instalments after the deferment period ends? 

NOTE: The options laid out here are for loans with compounding interest. For Islamic loans which forbid the usage of compounding profits, the monthly instalments will remain the same across all repayment options – borrowers will just have to pay off the interest accrued during the 6 month deferment period.

house-purchase-financing-loan

© rf123

Here are three of the most common options available at most banks, but bear in mind that there may be other additional options available as well:

1. Increase monthly instalment amount from October 2020 onwards

The accumulated interest charge from the 6-month deferment will be spread across the remaining tenure years. Using the example above, the RM11,465.70 will be accrued on your remaining monthly repayments. This would mean a slight increase in your monthly instalment amount moving forwards – however, it would not be very significant.

Here is an example from BNM on what a home loan repayment will look like after the 6 months deferment period, with no extension in the loan tenure:

© bnm.gov.my

From my perspective, I think many people will opt for this option.

2. Lengthen the number of loan tenure years

If you wish to maintain your monthly instalment amount, there is the option of lengthening the tenure of your home loan instead. However, this is subjective as it depends on many calculation variables based on your individual loan. Please check with your bank- the loan tenure extension might be more than 6 months. If that is the case, this option is no longer attractive as you will end up forking a lot more on interest payments in the long run.

If you have already maximised the loan tenure years (35 years according to BNM), then your bank will pick Option 1 by default for you.  the bank will revert to Option 1. You may write in to the bank for an appeal.

3. Maintain both of the above, and make a lump sum payment to settle the 6-month accrued interest 

For this option, you can maintain your years of tenure and not bear a higher monthly instalment after October 2020.  All you have to do is to pay the accrued instalment in one lump sum in October 2020 on top of your usual monthly repayment.

This might be tough to do as you will have to come up with roughly seven month’s worth of monthly repayments in one go.

4. Maintain both of the above, and a portion of principal amount is deferred to last instalment payment

How this works is the bank will adjust your monthly instalment monthly payment from October 2020 onwards by increasing the interest portion of your repayment. As the monthly instalment amount is being retained, the principal amount will be deferred to the last instalment payment at the end of your loan tenure. In other words, on your final instalment payment you will have to pay a higher amount which includes the principal amount owed previously.

11. Can the money deferred under the moratorium be used for investment?

Those who are not in a financial bind might think of leveraging on the loan deferment initiative by using the “freed up” money for investment purposes – although you have to be prudent with the current shaky global economic situation. Most experts predict that we are already on the brink of a recession.

At the end of the day…

The Bottomline here is that you will need to be prepared to pay for everything you still owe, choosing the option that works best for your financial situation. The recommended options would be (1) and if you can afford to finance your monthly repayments during this difficult time, you can even opt-out of the deferment programme and maintain your current loan package rather than pay unnecessary additional interest in October 2020.

Even with our comprehensive Q&A guide, there are still many questions left unanswered. The best advice would be to check with your bank or read their FAQs. BNM might have given a blanket directive for the loan moratorium, but different banks will have their own set of guidelines.

Edited by Reena Kaur Bhatt

Blog 2020

BNM Has Lowered Interest Rates and Some Banks Are Starting to Allow Loan Instalment Deferment. How Will It Affect You?

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This Article is written for Property Hunter

When Bank Negara Malaysia (BNM) announced an interest rate cut by 25 basis point to 2.75%, it took many people by surprise. Many economists predicted that the next cut probably will be at the end of the year. 

The move by BNM to cut the interest rate is to ease monetary policy amid an uncertain world economy. We are not the only country to lower the interest rate but other emerging markets like Turkey and South Korea started the year 2020 by doing the same.

The move by BNM makes our interest rate the lowest it has been in 9 years (since May 2011). This is good news for loan borrowers at this point of time as this will lower down the Base Lending Rate and Base Rate.

Well, any reduction in interest rate will help in these difficult times.

Let’s look at the loan instalment example reduction and how it can help you:

Loan Amount: RM500,000
Tenure: 35 years
Interest Rate: 4.5%

 

If you look at the calculation above, the monthly repayment is reduced by RM77. If you want to check your current BLR and BR you can go to Banks Interest Rate compiled by BNM as of 03 February 2020.

 

As I am writing this, there are a few banks who have started to defer loan instalment payment for borrowers because they are worried that the effect of Coronavirus might affect the loan payment capability by the borrowers. This is welcome news to some people who are feeling the effect right now rather than letting the loan turn into NPL and people start losing their homes.

 

Please check with your bank whether they have this special package. Do not panic if your bank does not. I think sooner or later they will announce the package.  I spoke to my banker friend recently and he confirmed that borrower will have to send a letter of request for the deferment.

 

Please understand that this will happen if the loan instalment is deferred:

a) Interest will continue to be calculated even though you did not pay the instalment.

b) Either your tenure years will be lengthened or the interest cumulated will be spread in loan instalment when you start back the instalment.

Please know this before you request the bank to defer your loan. 

This is not free money as some people thought but this is good to help borrowers at the time being. At very least this will help loan borrowers at these difficult times. 

Blog 2020

Banks are looking to assist home loan borrowers during the Coronavirus outbreak

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With a sudden decline in the economy due to this outbreak, financial institutions are doing their part in helping the rakyat with their debt.

SOPA Images / Contributor | Getty Images

As you may already know, the COVID-19 (coronavirus) has been spreading throughout the world like wildfire. People are scared, while face masks and hand sanitisers are high in demand – to the point where a massive shortage of supply is observed not just in Kuala Lumpur, but in other urban areas as well.

The situation is much dire in Singapore where panic buying is leaving most with empty shelves in the supermarkets. Even cruise ships unaffected by the virus are not allowed to dock, despite stopping in 3 different countries.

When will this stop? Nobody knows. There is no known vaccine as of yet, and the virus can be transmitted easily amongst humans.

In a recent article, an economist mentioned that Japan, South Korea, Taiwan, Hong Kong, Philippines, Singapore, Malaysia and Thailand’s economy will be badly affected if the outbreak is prolonged for more than 3 months. Logically, when consumers’ spending is low, with restrictions on imported goods, travel restrictions and many more – how can this NOT impact the economy?

We have no choice but to brave the storm. In light of this, some banks are announcing a temporary loan instalment deferment to their loan borrowers, as a way to help them during this difficult time.  According to a banker friend, loan borrowers will need to submit a request letter in order to allow the deferment. This is much better than letting the loan go into default and keeps people from losing their homes.

When there is a high chance of default, it is also not great for banks as the number of non-performing loans (NPL) will increase and thus, the loan loss provision will be higher – which can affect a bank’s bottom line. Therefore, a temporary deferment would have only a limited impact on banks.  However, not all banks are offering this yet, but it is likely that they will soon follow suit.

Blog 2019

4 Budget 2020 initiatives home buyers can take advantage of

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Written for iProperty

Let’s take a closer look at the key housing-related proposals announced under the latest Malaysian government’s budget. 

© Tsung-Lin Wu | 123rf

Whenever the annual budget announcement is around the corner, you will see plenty of speculation, opinions and projections from various parties. Of course, everyone will hope for a better budget than the former. With the recent Budget 2020 that was announced on 11th October 2019 by our finance minister YB Lim Guan Eng, let’s look into what the impact on the property sector would be like:

1. Rent-to-Own Scheme (RTO)

  • Financial Institutions will provide RM10 billion financing, in which 30% of RM3 billion is guaranteed by the government.
  • Applicable only for properties up to RM500,000
  • Applicants can rent up to 5 years, before deciding whether to purchase at an agreed price.
  • Exemption on stamp duty for SPA and loan agreement.

RTO caters to aspiring homeowners who find it difficult to come up with the initial 10% downpayment. The scheme is also good for young, working professionals and couples as it gives them some financial cushioning and allows them ample time to save, for 5 years. They can then decide whether to buy or not in the sixth year.

The rent to own scheme biggest selling point is that buyers will be able to lock in the property purchase price based on the current selling price. This means when they do purchase the home after 5 years, the sale price remains unchanged even though the who wish to lock in the purchase price based on the current property value so that when they decide to finally make the purchase, the sale price remains the same even though the property’s current market value is higher due to capital appreciation over the years.

If the property price at that time goes down, they can decide not to buy; but if the price goes up, it’s a win for the buyer.

It is always crucial for homebuyers to do proper financial planning before they commit to buying a property. Some suggestions would be to work part-time jobs in addition to one’s main job to supplement their income – take advantage of the many opportunities like e-hailing cars or food delivery. I spoke to a GRAB driver recently who told me she is driving part-time to earn extra money to buy a house. This is a good example of using resources that you already have to your advantage – in the long run, it would help alleviate financial burdens and help you save more, faster.

 

2. Lowering foreigner’s minimum property purchase price from RM1 million to RM600,000

buy-property-malaysia-house.

© Getty Images

There are many comments on this new law. Some states it is a good thing while others say it is open for abuse. What do you think? Indefinitely, it is good news for developers. There are still a staggering RM8.3 billion of supply overhang in the property market. It is also great news for foreigners – I recall someone who came up to me at a seminar last year, lamenting that RM1 million is too high for his budget. Now he’s able to grab the lower deal.

 

According to the government, this only applies for existing, unsold units and not for new projects and will only last for a period of 1 year, from 1st January 2020 to 31st December 2020. Additionally, foreigners who will buy these properties will not be given automatic citizenship. The government hopes to reduce the number of overhang units within this period.

One thing to also note is that the government announced the minimum threshold on a national level. So it would depend on each state to implement this as a state prerogative – based on the guideline, RM600,000 is the lowest they can go.

3. Real Property Gains Tax (RPGT) has been revised

© Andriy Popov | 123rf

Everyone was hoping that the RPGT of 5% ruling for genuine homeowners to be abolished in Budget 2020, as it was said to be actually a tax on inflation. I think the government heard us loud and clear, but unfortunately, it is not abolished.

Instead, the government made a change to the date of the 5% calculation from 1st January 2000 to 1st January 2013. That’s a 13-year revision, and it can be construed as good news. In a Facebook Live commentary on Budget 2020 with WK Ng, a full-time investor, he mentioned that 2013 is a period where we have already surpassed the high increase in property prices.

So the 5% tax is now much lower. But of course, the new law will only come into effect on 1st January 2020, so until then, property sellers may want to hold off any sales for the remaining year.

4. Youth Housing Scheme under BSN

seremban-housing-development

© HAFZI MOHAMED / Bernama Images

This is another good initiative in helping youths to earn their first home. The scheme which is also widely known as Skim Perumahan Belia (SPB) was extended by BSN to 31st December 2020. It is limited to 10,000 houses and homebuyers will have the luxury to borrow up to 100% of the purchase price and 10% is guaranteed by Cagamas.

I support this initiative, but homebuyers will need to do proper financial planning. The first rule is to buy only what you can afford – so if you can only afford RM200,000, you cannot be buying a RM400,000 property. Grow slowly within your means, you do want to end up bankrupt.

Just to add on, the recent Homeownership Campaign has been extended to 31st December 2019. Take this opportunity as it comes with free stamping fees on SPA and loan. However, not all developers are in the scheme, only those registered with REHDA, SHAREDA and SHEDA qualifies. The campaign has already surpassed its objective of RM3 billion, achieving a whopping RM13.44 billion, which is four times higher. Therefore, it is very unlikely that the scheme will be extended any further.

I hope this will give you a better insight into Budget 2020 and its impact on the property market. Again, let me stress that it is crucial to have proper financial planning before you start your property journey. Best of luck in buying your first property.