If you have done your evaluation and found that savings from refinancing cannot compensate the penalty (if) and the lock-in period still far away from now, then we may consider to request interest revision from existing finance institution.

My first request in early 2008 rejected because the progress of the construction does not seem good. To increase chance to get the interest rate revision, I adapt another banker advice to write a simple letter to request start repayment (full installment) even BI under construction. Different financial institutions may have different T&C imposed on prepayments; some allow extra / flexible repayment without notice. So, you can check them further if any notice needed.

If your bank need letter, below is the simple example for your reference. I also dump to write letter: p
________________________
RE: REQUEST HOUSING LOAN INTEREST RATE REDUCTION. Account no : XXXXXXXXX
Refer to the above matter, we would like to request interest rate reduction for our house loan which we signed in April, 2005 with below rate, non- zero moving cost.
1st year : 0%
2nd year : BLR – 1%
3rd year and thereafter : BLR + 0.25%

2. Compare to current market rate offer ranging from BLR-2.2% to BLR 2.4%, the reasonable rate 4 years ago now seems extremely uncompetitive.
3. As a long-term customer with xxxx bank, we opt to remain relationship with XXXX if you can offer us better package on flexi payment mode. We also have been proven as a good pay master since we commenced our repayment.

Hope to get the best package from you sooner possible or we will are regret to consider refinancing with other financial institutions.

Yours faithfully,
_________________________________

1) You have to write in to tell your banker you are paying advance or it will just be there without lowering the interest.

2) (This only apply to my contract & Bank). I cannot withdraw the money UNTIL the bank completely drawdown the loan amount. Kinda sucks if I needed the money.

I would advise you all to start paying installment now instead of servicing the bank interest though the house is still incomplete pending CF application and handover.
The CF and handover are imminent now, unless Bayan Villa really want to abandon it now, but very remote possibility.

This will be a good help for some ppl who r dumb when writting letters….juz like me… :P

Thanks for the new thread. It could be good for the new buyers who are seeking bankers and they can counter-offer against each other for the best deals.

It is even better for those who are (going)hunting for refinancing. Refinance have a better deal compared to UC because the banks gets to earn full installment interest instead of progressive.

On the market, I am quite sure you can easily get a -2.2% for a 300k HL deal (ZEC). EON have -2.3 (as advertise)

What I want to know is how low anyone got on a flexi plan.

There is one more trick you can pull on your banker, get the lowest (probably EON bank can do that) and ask the bank you preferred (probably PBB, Maybank and CIMB becoz they have branches all around) to counter the offer.