In recent times, the redraw facility has become a common feature in most home loan packages in Malaysia.  Whilst the concept of redraw is relatively simple to understand for most seasoned home buyers; a new home buyer may find this term slightly confusing as it really isn’t something you see everyday.

In this article, we explain what redraw facility is and how you would be able to take advantage of it if your home loan has this feature.

What is Redraw?

Redraw is the act of accessing excess payment you have made on your home loan.  To understand this concept, we will first have to explain what excess payment in a home loan is.

In Malaysia, most home loan packages allow you to make excess repayment, which basically means extra payment you pay to the bank on top of the minimum loan repayment amount.

Example:

Say your monthly home loan repayment is RM1,000.

And this month, you’ve made a repayment of RM1,100.

Your excess repayment = RM1,100 – RM1,000 = RM100.

Making these excess repayments is not without its benefit.  For most home loan packages, the excess repayments are used directly to offset the principle loan amount, which in turn reduces the amount of interest you’ll pay over the term of your home loan.

A redraw facility is a feature that allows you to withdraw excess repayments you’ve made on your home loan.  Say you’ve been making extra repayments religiously and have accumulated a total of RM10,000 in excess repayments, a redraw would allow you to take out that RM10,000 as cash for your own use.

Obviously, making a redraw means you’ll lose out on all the interest-saving benefits stemming from making excess repayments; but it is still a very handy feature especially when you need cash in a hurry and wish to reuse the excess repayments you’ve made.

One Thing to Take Note Of When Using Redraw Facility

Whilst the availability of redraw facility undoubtedly makes excess prepayment seems like a good idea for a home loan; one should always remember that executing a redraw usually involves fees and charges.

In Malaysia, most banks charge a standard fee of RM50 for every redrawal from a conventional home loan package.

For anyone carrying a home loan, the existence of redrawal fees is significant as it means you CANNOT treat your home loan like a standard current account (where you can put in and take out money as you like).

So before you make that excess payment, make sure you won’t actually be needing to redraw it a couple of days or weeks down the road… for you could potentially be losing more money than you’ve saved by making redrawals one time too many!

This article comes courtesy of www.imoney.my which compares between the various loans, savings and insurance schemes available in Malaysia.

Skyview Piazza is well placed to attract quality customers from the immediate vicinity. With all its units located on the ground floor, it offers a huge captive market of the residents from its base of Skyview Residence and other surrounding ones too, making it a sure choice for retail business. Designed with carefully planned layouts, Skyview Piazza is, without doubt, dedicated to the lifestyle activities of the entire family, all year around.

Property Name: Skyview Piazza
Location : Perak Road, Jelutong, Penang
Property Type : Mixed development
Total Units: 6
Land Tenure : Freehold
Developer : Gema Intan Sdn. Bhd.

KUALA LUMPUR: Penang-based Ivory Properties Group Bhd will start work on phases three to five of its Penang Times Square project, which includes a five-star hotel, by year-end.

Group chief executive officer Datuk Low Eng Hock said the three phases would cover 1.5 million sq ft, including a five-star hotel.

In a statement issued after its AGM in Penang, Low said these phases would comprise small-office-home-office (Soho) units, a shopping mall, a hotel with 300 en-suite rooms, exclusive suites and a stand-alone cineplex.

As for the mall, Ivory Properties is to be the sole owner and plans are underway to attract international retailers to fill up 500,000 sq ft of the mall area.

“There will also be a double-storey basement car park to accommodate high traffic flow during the peak season,” he said.

Source: StarProperty.my

Nadayu Properties Bhd aims to launch three projects worth over RM800 million in the Klang Valley and Penang within six to 10 months to grow the group and build its brand.

The developer will be launching Nadayu 99 in Cyberjaya, Superlinks@Nadayu Melawati in Ampang and Nadayu 290, Bukit Gambir in Penang.

Nadayu 99 comprises 13 units of three-storey shoplots and 132 units of superlink houses, while Nadayu Melawati comprises 46 units of superlink houses.

Nadayu 290, meanwhile, features 279 units of service apartments and hotel.

These projects worth a combined RM851.5 million, its chief executive officer Mohd Farid Nawawi said.

The company also has on-going projects worth about RM1 billion, which are being launched in phases.

This year, the company expects its property sales to hit RM300 million this year, led by its latest launches in the Klang Valley.

Farid said the targeted sales will be driven by its on-going property projects, namely Nadayu Melawati, Nadayu 92 in Kajang and Nadayu 28 in Bandar Sunway.

“The take up rate for the three projects is looking healthy at the moment and we are upbeat on the market,” he told reporters at the company’s shareholders meeting here yesterday.

Also present was its chairman, Hamidon Abdullah.

Hamidon said Nadayu has about RM250 million in unbilled sales, which will be recognised for the next one year.

“We will look at all opportunities to grow the business and also look for more strategic land banks for future development,” he said.

He added that Nadayu brand is becoming acceptable, where people are starting to identify the name and associate it with the level of quality and delivery.

Currently, the company has a land size of 334.67 ha, mainly in the Klang Valley and Penang, worth about RM5.9 billion.

Commenting on the second quarter performance, Hamidon said that the company is expecting to do better than the first quarter.

Source: Business Times

Skyview Avenue, strategically situated in the heart of Jelutong along Jalan Perak, it is ideal for anchoring all kind of corporate offices and retail outlets. Designed for convenience, the exciting variety of eating outlets and retail mix reflects the lifestyle demands of the young trend-setters, makes it one of Penang’s perfect meeting places for the style conscious to organize social get-together, as it is easily accessible from all parts of the city

Highlights:

• high ceiling features for better air ventilation
• frontage layout and design catered for al fresco dining
• adds a casual, lively, party-like and enjoyable dimension to dine in the fresh open air