Saturday, March 18, 2017

What happens when mortgage payment defaulted (not paying on time)??

When one offered a loan by the bank, usually he / she only focus on the interest rate, lock-in period and MRTA requirement, if any.

Most people don't know this "Default Clause" where borrower fails to pay the installment on time.

What will happens if you have bad paying habit like.... always forgot to pay, every 2 months pay one time, delay a month or two before making up the outstanding?

Well, you have to aware of the Default Clause, example:-

Public Bank

Hong Leong Bank
They call it "Additional Interest" AND "Default Interest"

Seem like there are no standard clause for the default set by Bank Negara, you just have to watch out, and be a good pay master.

The different in offered rate like BLR-2.0%~2.4% and default rate like 2.0% + BLR can be as low high as 4% and multiplying the outstanding balance, for a small outstanding loan like RM300,000 you might be charged additional RM1,000 a month without knowing it. If you only know it 2~3 years later, the additional interest charged to your account could be RM24,000 to RM36,000. So, you know how serious it is now?

If you drag more than 3 months, you may even run into 'bankruptcy procedure' initiated by the financial institution.

Tuesday, February 21, 2017

Motor Insurance Claim Management

What is Merimen?

It is a online centralized claim management system for the following parties to work together on motor claim management:-
1) Agents
2) Adjusters
3) Repairers
4) Insurers

For claims, few parties involved but most of the time, consumer / insured blame insurers or agents if things don't go smooth because lack of understanding on how the whole process works.

Currently there are 30 participating insurers (almost all insurers with motor business)

  1. ACE Jerneh Insurance Berhad
  2. AIG Malaysia Insurance Berhad
  3. Allianz General Insurance (Malaysia) Berhad
  4. AmGeneral Insurance Berhad (AmAssurance)
  5. AIA Bhd
  6. AXA Affin General Insurance Berhad
  7. Berjaya Sompo Insurance Berhad
  8. Etiqa Insurance Berhad
  9. Etiqa Takaful Berhad
  10. Hong Leong MSIG Takaful Berhad (Formerly Hong Leong Tokio Marine Takaful Berhad)
  11. Lonpac Insurance Bhd
  12. MAA Takaful Berhad
  13. MCIS Insurance Berhad
  14. Malaysian Motor Insurance Pool (MMIP)
  15. MSIG Insurance (Malaysia) Bhd
  16. MPI Generali Insurans Berhad (Formerly known as Multi-Purpose Insurans Bhd)
  17. Overseas Assurance Corporation (Malaysia) Berhad (OAC)
  18. Pacific & Orient Insurance Co. Berhad (P&O)
  19. Progressive Insurance Bhd
  20. Prudential Assurance Malaysia Berhad
  21. QBE Insurance (Malaysia) Berhad
  22. RHB Insurance Berhad
  23. Sun Life Malaysia Takaful Berhad (formerly CIMB Aviva Takaful Berhad)
  24. Syarikat Takaful Malaysia Berhad
  25. Takaful Ikhlas Berhad
  26. The Pacific Insurance Bhd
  27. Tokio Marine Insurans (Malaysia) Berhad
  28. Tune Insurance Malaysia Berhad (formerly known as Oriental Capital Assurance Berhad)
  29. Liberty Insurance Berhad
  30. Zurich Insurance Malaysia Berhad (formerly known as Malaysian Assurance Alliance)

The following Franchise also part of the MERIMEM system....

1.Auto Bavaria
2.Auto Eurokars
3.Auto Italia
4.BMW Malaysia
5.Cycle & Carriage Bintang
7.Edaran Otomobil Nasional (EON)
9.Federal Auto
10.Hap Seng Star
11.Hino Motors
13.Hyundai-Sime Darby/Hyumal Motors
14.Ingress Auto
15.Land Rover
16.Lowe Motors
17.Kah Bintang Auto
19.Motor Image Enterprise
20.Naza Kia
21.NZ Wheel
23.Proton Edar
24.QUILL Automobiles
25.Sapura Auto
26.Sime Darby Automobiles
27.Tan Chong Express Auto
28.Tan Chong Industrial Equipment
29.Tian Siang Premium Auto
30.Torino Motor
31.UMW Toyota
32.Wearnes Automobile
33.Wheelcorp Premium

Thursday, February 2, 2017

9 successful people share the smartest thing they’ve ever done with their money

Business Insider posts on *nine successful people. They list the Smartest things they've ever done with their money...

  1. Build an emergency fund. (AskChong: Start from RM100 if you can't afford RM500)
  2. Pay yourself first. (AskChong: Open another account to save RM100 per month, or more)
  3. Invest in real estate (AskChong: Perhaps not now...)
  4. Bought a computer (which led to a career)
  5. Invested in ideas
  6. Made my money work for me
  7. Started a business
  8. Lived below my means (AskChong: Perhaps this should be First Thing First)
  9. Invested in myself.(AskChong: Read More... Attending some fair priced workshop)
It is a pretty good list. Hard to argue with any of these except...
  • Not the best time to invest in real estate in 2017 and 2018
  • You can't do item 3 if don't even have item 1 and item 2.
  • Item 7 is difficult but not impossible if you are gainfully employed.

Click here for more info.

Thursday, November 3, 2016

FINTech - Hire Purchase from Hong Leong Bank is HERE.

Hong Leong Bank (HLB) on Thursday formally launched its auto loan application platform called Loan2Go.

This makes HLB the first bank in Malaysia to roll out an off-site straight through processing mobile auto loan application platform on tablets for its sales force.

However, I check here and there, nothing. Disappointed.

Wednesday, November 2, 2016

Personal Finance - What book to read? The Millionaire Next Door


The Millionaire Next Door

The book highlights seven common denominators among those who successfully build wealth. They are:

* They live well below their means.
* They allocate their time, energy, and money efficiently, in ways conducive to building wealth.
* They believe that financial independence is more important than displaying high social status.
* Their parents did not provide economic outpatient care.
* Their adult children are economically self-sufficient.
* They are proficient in targeting market opportunities.
* They chose the right occupation.

Do any of those sound familiar for you?