Flexi Home Loan Calculator Malaysia

Flexi Loan Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Principal Amount (P):

MYR

Annual Interest Rate:

Loan Term:

years

Monthly Prepayment (Optional):

MYR

Base Monthly Payment:

Total Payment with Prepayment:

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1. What is a Flexi Home Loan?

A Flexi Home Loan in Malaysia allows borrowers to make partial prepayments towards their home loan principal, reducing the total interest paid and potentially shortening the loan tenure. This calculator helps estimate your monthly payments including any additional prepayments.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount (MYR)
\( r \) — Monthly interest rate (annual rate ÷ 12)
\( n \) — Total number of monthly payments
\( PMT \) — Monthly payment amount

Prepayment Adjustment: Any additional prepayment amount is added to the base monthly payment to calculate the total monthly outlay.

3. Benefits of Prepayments

Details: Making regular prepayments can significantly reduce your total interest cost and may shorten your loan tenure. Even small additional payments can make a big difference over the life of the loan.

4. Using the Calculator

Tips: Enter your loan amount in MYR, annual interest rate (e.g., 3.5 for 3.5%), loan term in years, and any additional monthly prepayment you plan to make. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do prepayments affect my loan?
A: Prepayments reduce your principal balance faster, which decreases total interest paid and may shorten your loan term.

Q2: Are there prepayment penalties in Malaysia?
A: Most Malaysian banks allow partial prepayments without penalty, but terms vary by lender. Check your loan agreement.

Q3: Should I shorten tenure or reduce payments when prepaying?
A: Reducing tenure saves more interest, but reducing payments improves cash flow. Choose based on your financial goals.

Q4: How often can I make prepayments?
A: This depends on your loan terms. Some banks allow monthly prepayments while others may have frequency limits.

Q5: Is a flexi loan better than a conventional loan?
A: Flexi loans offer more flexibility but may have slightly higher interest rates. The best choice depends on your financial discipline and cash flow.