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| Alliance Bank -
Savelink IPO
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| Save link Interest Payment Option (IPO) – The loan that
offers the flexibility of OD at the price of home loan rates with low initial
payment of interest for the first 5 years of the loan.
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| Product
Features |
Save link is a deposit linked flexi home loan - A home loan and Checking
Account combined into One (1) that offers unlimited prepayment and redraw all
of pre-paid amounts at anytime. Alliance Bank has added a new feature
to Save Link - Savelink IPO.
Savelink Interest Payment Option (IPO) features the combination of SaveLink
HomeLoan and Interest Servicing Only(similar to the nature of OD) for the first
5 years of the loan. Commencement is from first disbursement or 3 months
from the Letter of Offer date, whichever is earlier. IPO is applicable to both
completed and under-construction residential properties. Minimum Property Price
or property market value at RM 100,000. The offer margin of finance is up to
90% of the Property Price or the property market value and the minimum loan
tenure is 15 years (inclusive of interest period).
The Savelink IPO package offers the convenience of Zero Entry Cost (ZEC)
option. This package comes with a Lock-In period of 3 to 5 years ( 5 years for
Zero Cost package and 3 years for Non-Zero cost package- completed property
only) and early settlement within the first 5 years of the loan will be being
imposed an exit fee of 3% of the original loan amount.
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| What's good
about it? |
| This flexi loan only requires the Borrower to service
interest payment only which is different to most other Banks’ flexi
loan packages that require the Borrower to service the interest and principal.
The feature of Interest only payment at lower Home Loan rates (offered
rate as low as BLR minus 0.9%) makes it affordable for the new homebuyers
or home up-graders to commit on their desired dream house with low initial
payment of interest only. Additionally, this loan suits Investor as they are
only requires to service the interest portion for first 5 years of the loan
before selling the property to a quick profit. Also the built in flexi
features in Savelink IPO allows the Borrower to achieve cost savings, while
having the flexibility to redraw on the excess payment made should they require
cash. |
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| Limitation |
| With IPO loan, during the first 5 years interest
payment period, no principal portion will be paid hence no principal reduction
during the interest period. The full installment payment will be deferred to
commence on Year 6 onwards and this lays heavier repayment amounts on Borrower
as the loan will still need to be settled within the approved loan tenure less
interest period. For example, a repayment tenure of 15 years, the first 5 years
is the interest period and the repayment of the approved loan amount is to be
repaid fully during the balance 10 years of the loan tenure. Hence, the monthly
installment amount will be higher as it will be based on the 10 years
instead of the applied loan tenure of 15 years. This loan requires
discipline in managing funds and Interest rates may be higher than loans
without such features.
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Disclaimer All home loans, features, charges, benefits and
other information listed here represent the most recent information
available at the time of writing. Every effort is made to keep the site
accurate, however we cannot guarantee that a lender has not increased or
decreased one or more of the home loan rates or fees/charges
associated with a loan deal or changed its features, obligations or benefits. |
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