10 easy (and cheap) ways to save petrol

Everyone is still talking about the recent petrol price hike and it doesn't seem to end there. More price increases are expected to follow. It’s really time to be efficient in managing finances to make way for the hike. Here, we look at some simple ways you can beat rising fuel costs: 1) Use loyalty cards Many petrol stations offer loyalty cards to reward their regular customers. Make use of the loyalty cards and try to always pump from the same petrol company. You can also take advantage of credit card that offers reward or cashback on money spent on petrol. 2) Do not leave your engine idling Waiting for your girlfriend in the car? Turn the engine off. You are wasting petrol and also releasing unnecessary harmful emissions by leaving...

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6 Things You Need To Know Before You Take Out A Car Loan

So, you’ve got your eyes set on that fancy new Preve and you’re now looking to take out a car loan with the bank (also known as “hire purchase). Before entering into what typically is a nine-year commitment, here’s the lowdown on what to look out for in a car loan agreement. 1. Minimum Car Deposit The minimum deposit that banks normally ask for is 10% of your car purchase price. For example, if your shiny new car costs RM50,000, you will typically need to pay RM5,000 up front. However, some banks may ask for a higher deposit amount. 2. Fixed vs. Variable Interest Rate Most banks would offer a choice of fixed or variable interest rate for your car loan. A fixed interest rate loan means your interest rate would remain constant...

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Posted in: car loan

Car Loan in Malaysia – the Basics

Ever wondered how a car loan works? The process of applying for a car loan may be long-winded and put many people off, but it is not actually that complicated. So let’s put some sense into what actually happens in the realm of car loans. Obtaining a Car Loan What actually happens when you buy a car in Malaysia and what are the things you will face? In the case of applying for a car loan, you have a choice of either applying it directly from a bank, or indirectly through a car dealer / agent. There are advantages and disadvantages of going with either party – with a bank, you are dealing directly with the one providing you with the loan. Hence, you will not be charged additional commissions or fees that are typically...

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Posted in: car loan

Car Loans in Malaysia – Conventional vs Variable Rate

If you drive a car, a car loan is something that you’ll almost certainly have to undertake a couple of times in your life. In this article, we explain the difference between a Conventional Car Loan and a Variable Rate Car Loan, and how they’ll affect your wallet in the long run. Conventional Car Loan A conventional car loan is a rigid form of car loan where your interest is calculated based on the principal amount you borrowed and the length of your loan period. With conventional car loan, your monthly instalment is “fixed”. So even if you decide to pay more for one month, the excess monthly payment you make is treated as advance payment for the future, and does not reduce the interest on your car loan. Example of How Conventional...

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Posted in: car loan

How to Calculate Car Loan Interest and Instalment

Taking up a car loan (also known as hire purchase) is the most common approach when buying a car. In this article, we’ll show you how simple it is to calculate your monthly interest and instalment for a conventional car loan in Malaysia. All you need is a calculator and you’re good to go! 2 Easy Steps to Calculate Car Loan Interest and Instalment First, determine the values of the loan amount, loan period and interest rate of your car loan, as follow: Loan Amount = ATotal Loan Period = B (years)Interest Rate = C Now, use the following formulas to determine the total interest, monthly interest and monthly instalment of your car loan: Your Total Interest = C/100 x A x B = XYour Monthly Interest = X / (B...

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Posted in: car loan

Home Loans in Malaysia – Types of Home Loans

With more than a dozen banks in Malaysia all offering housing loan products of some sort, it is not surprising that many consumers struggle to differentiate between the different types of home loans. In general, home loans in Malaysia can be categorised into two different groups – conventional and Islamic. Let’s take a quick look at the difference between the two: Conventional Home loan Conventional home loan accounts for a large majority of the total home loans in the market. In a conventional home loan, a borrower agrees to repay the loan amount together with interest over an agreed loan period. Banks normally charge either a 1) fixed or 2) variable interest rate on conventional home loans (or a combination of the two)....

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Posted in: home loan

6 Things You Should Consider When Taking Up a Home Loan To Buy a House In Malaysia

To the common folks, choosing a home loan is almost as hard as choosing the property itself. If you’re currently in the midst of shopping for a home loan to buy the house of your dream, here are 6 things you should consider before making what would arguably be the biggest financial decision of your life. 1) Type of Home Loan First and foremost, consider what works best for you: a Traditional Term Loan or a Flexible Home Loan (“Flexi-Loan”). A Traditional Term Loan requires you to pay a fixed amount each month for the entire tenure of your home loan (e.g. 30 years), whilst a Flexi-Loan gives you the option of reducing your interest whenever you wish (i.e. by saving your extra money into a linked current account. The more you save, the...

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Posted in: home loan

Are You Financially Ready to Buy a House in Malaysia?

Owning a home you can truly call your own represents the ultimate dream for just about anyone. But with escalating real estate prices and the burden of lengthy loan repayment periods that easily go into 30 years or more, buying and financing a home is not just a matter of saying “I like it” and signing on the dotted line. It is something that should be done with a great deal of sense and prudence. For all aspiring Malaysians who are actively considering buying a home by taking a loan, here are three things to determine if you’re financially ready to undertake this life-changing endeavour: 1) Do You Have Enough for the Upfront Costs? In Malaysia, most banks offer up to 90% of the property’s price (margin of financing) for your first...

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Posted in: home loan

5 Common Home Loan Mistakes That People Make

Taking a home loan? Here are 5 common home loan mistakes that people make especially when they’re applying for it for the very first time. Read on so you can avoid these pitfalls too. Diving in When You’re Not Qualified Banks, by nature, are generally eager to offer home loans to qualified homebuyers. The keyword, though, is “Qualified”. In Malaysia, a qualified home loan applicant generally refers to one with the appropriate Debt Service Ratio (DSR) and has no red marks on the Central Credit Reference Information System (CCRIS) report collated by Bank Negara. If you don’t fit the criteria, they’ll have no problem rejecting your application. So before you apply you’ll want to make sure you’ve done the necessary preparations and are not...

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Posted in: home loan

Gold Investments Bring In The Money: A Guide for Beginners

Investment provides individuals a chance at a promising future, and there are many attractive investment options one can choose from. Today, we will focus on gold investments, which are very popular with those new at investing. By the end of this post, you will understand why gold is popular among savvy investors. As you might already know,gold investment is really about the use of gold as the prime object of the venture. You may ask, why gold? And history would answer that numerous societies & cultures have treated gold as of the highest value. While nowadays it is no longer used as the main currency, it is still one of the most valuable assets anyone could have. Experts note that the value of currencies all over the world...

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Posted in: Investment