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.

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.

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.

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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OCBC Graduated Home Loan

OCBC Graduated Home Loan is designed to meet the financing needs of borrowers by servicing lower monthly installments which will gradually increase over the first 5 years in tandem with the borrower's income stream. The installment from 6th year onwards will remain until the rest of the financing tenure. 

Product Features
OCBC Graduated Home Loan is a daily rest interest calculation term loan that comes with the flexibility which allow the borrowers to make prepayment and redrawal of the excess payment made. Redraw is only available upon full release of the loan. This scheme is applicable to graduates who hold a Diploma or Degree with a minimum age of 21 and maximum entry age of 35 years. The applicants must either be with the same employer for 1 year or have been working for at least 2 years. For joint applications, at least one of the applicants must be a graduate in order to qualify for the OCBC Graduated Home Loan. 

OCBC - Interest Rates Option - NZEC (As at 30.04.2008)

Fixed Rates

3 Years Fixed Rate: 4.88% (Yr 1 - 3), BLR - 1.55% (Thereafter)

5 Years Fixed Rate: 5.68% (Yr 1 - 5), BLR - 1.55% (Thereafter)

Variable Rates

BLR - 2.00% (Yr 1 - 3), BLR - 1.75% (Thereafter)

OCBC - Interest Rates Option - ZEC (As at 30.04.2008)

Fixed Rates

3 Years Fixed Rate: 5.88% (Yr 1 - 3), BLR - 1.55% (Thereafter)

5 Years Fixed Rate: 6.18% (Yr 1 - 5), BLR - 1.55% (Thereafter)

Variable Rates

BLR - 1.50% (Yr 1 - 3), BLR - 1.65% (Thereafter

OCBC Graduated Home Loan provides 90% margin of finance for all landed properties and 80% margin of finance for non-landed properties except for the following locations - Wilayah Persekutuan, Petaling Jaya and Penang Island, which is at 90% margin of finance. It also offers different packages; giving the borrowers the choice of variable and fixed rates packages. The package comes with the option of Non-Zero Cost (NZEC) package and Zero Cost (ZEC) package that covers legal fees, stamp duties, disbursements and valuation fees in connection with the loan. The minimum loan amount for the OCBC Graduated Home Loan, ZEC package is RM100,000.

For completed properties, the minimum loan tenure is 5 years and maximum loan tenure is 40 years or up to age 70, whichever is earlier. For under construction properties, the minimum loan tenure is 5 years and maximum loan tenure is 36 years or up to age 70, whichever is earlier. OCBC uses the debt-to-service ratio (DSR) whereby Employees Provident Fund (EPF) and taxes are deducted from the borrower’s gross salary. The housing loan must not exceed 40% of the borrower's nett income. 

For the NZEC package - If the facilities are redeemed within the first 5 years of the loan, there prepayment charge is 3% of the amount prepaid (including capital repayments) and the outstanding amount redeemed or RM 5,000, whichever is higher.

For the ZEC package – If the facilities are redeemed within the first 5 years from the loan, the prepayment charge is 3% of the amount prepaid (including capital repayments), and the outstanding amount redeemed or RM 5,000, whichever higher + Administration Fees (as listed below).

Admin Fees : Loan Amount
RM 05,000 : Up to RM 500,000
RM 10,000 : RM 500,000 & up to RM 1,500,000
RM 15,000 : RM 1,500,000

What's good about it?
OCBC Graduated Home Loan is a term loan that commensurates with the borrower's earning capacity. It provides a graduated monthly repayment scheme with lower monthly installments for the first 5 years and longer loan tenure (up to 40 years or when the applicant turns 70, whichever is earlier). 

The affordable start-up repayments is useful for applicants who are earning lower income in their initial years of their career as they will service lower monthly installments, hence making it more affordable. The repayment structure frees up cash for home-buyers in the first 5 years of buying their property. With low monthly installments, borrowers can use the extra funds to renovate their new home, or buy new furniture. 

With the built-in flexible repayment feature, borrower can make capital repayments even during the low initial monthly installment of the first 5 years. No notice is required and no penalty charged.

Limitation
To qualify for the OCBC Graduated Home Loan, applicants must have at least a recognized diploma. Also, applicants' age must be 35 years and below.

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