With so many available housing schemes in Malaysia, such as the PR1MA Scheme, getting a house is no longer a far fetched dream. However, paying for the home loan payment becomes more and more difficult for people nowadays. This article will guide you through the consequences if you miss the the home loan payment. First and foremost, you will definitely be charged with late payment charges, also know as penalty. Each bank has different penalty interest rate and differs across different banks. 1.Late payment Imagine a scenario: Tony was 30 days late in making his monthly payment in the first year. The bank then notified him and charges arrears on him. The arrears charged will be calculated based on the formula below with penalty charged: Monthly payment x 30/365 x late interest (3.9% base rate + 6.35% penalty rate) He will now have to pay an arrear of RM23.48, on top of the monthly payment of RM2,784.44. The total amount that Tony will have to pay the following month is now RM2,907.92 after the penalty. On the bright side, this will be a one off penalty. However, if Tony fails to make payment on before 60 days, the bank will then have the right to re-evaluate the interest rate. Another thing to take note, if Tony has another late payment again in the future, the bank will also re-evaluate and increase the interest rate. Therefore, it is always good to practice making payment on time to prevent getting your interest rate increased and end up having to pay more for penalty. 2.You should never miss a payment Being a late payer on bills will have a bad effect on your credit health, and there will be no way to fix your credit health once you are a late payer. If you are one those late payers who have been making late payments, the only thing you can do now is to make payment on time from now onwards. It will not affect your credit history immediately as the credit history shows your transactions and activities for the past twelve months. That being said, if you start making payments on time, your credit history will slowly improve. 3. Struggles in making payment If you are not in any financial struggle and the main reason for missing payment is solely because of a busy and hectic lifestyle, you could always rely on reminder on your phone. Set a monthly reminder on your phone to remind you to make payment so you will not miss any payment. If you are not keen on this idea, you could always opt for automatic transfer from your bank account to make your home loan payment monthly. However, if you are on serious debt issues, you definitely will need to seek for professional help. In conclusion, think carefully and thoroughly before making such big decision in buying a house. Always set a realistic budget and stick to it to prevent yourself from getting into financial burdens or debts.
0 Comments
Leave a Reply. |
|