Welcome To SUPEX Mortgage Reduction Seminar: Welcome To SUPEX Mortgage Reduction Seminar SUPEX MORTGAGE REDUCTION SEMINAR Speaker: Mr. Steven Chin SUPEX MORTGAGE REDUCTION (M) Sdn Bhd.


Slide3: David Wong is the Master Degree holder of Buckingham, The International Management Centre (UK) and University of Action Learning (US). Currently ,David Wong is the Founder and CEO of Super Excellence Consulting Group.


Tax Audit Act @ Mortgage Audit Act: Tax Audit Act @ Mortgage Audit Act Government Tax $20,000 per annual 20K x 6yrs=120K Tax Audit Act $10,000 pa 10K x 6yrs = 60K Through By Tax Audit Act Claimed Back 60K Housing Loan Interest, Real State Loan Interest or Any other Mortgage Loan Interest ………… If Overcharges Occur , You Can Claim Your Overcharged Mortgage Interest.


You’re Paying Too Much For Your Home! : You’re Paying Too Much For Your Home!


Slide12: Monthly Repayment $1,621.50 Interest Rate: 6.75% Monthly Compounded Term: 30years(360months) Loan Principal $ 250,000.00 本金$ 250,00.00 Total Interest Total Payment Monthly repayment $ 1,621.50 x 30 years ( 360 months ) = $ 583,738.29 (Total payment) $583,738.29 - $ 250,000 = $ 333,783.29 (Total Interest)


Your Loan: Repayment $1,621.50 Your Loan Interest $1,406.25 Principal $215.25


After 5 years, total paid $97,290.00: Repayment $1,621.50 After 5 years, total paid $97,290.00 Penalty if fully settled in 5years. Principal only reduce $15,310.73 Total interest paid $81,978.99 $250,000 pinjaman, selepas bayar 5 tahun, jumlah ($97,290.00), Tetapi masih hutang $234,690.00 (94%)


Have You Ever …: Made an EPF Extra Payment in order to save your Mortgage Interest ? Made a Fixed Deposit Extra Payment in order to save your Mortgage Interest ? Made a Cash Deposit Extra Payment in order to save your Mortgage Interest ? Made an Annual Bonus Extra Payment in order to save your Mortgage Interest ? Have You Ever …


Slide16: Overcharged? Possible？ “Banks are so Big & Standard”


Beginning of Nightmare !!!: Beginning of Nightmare !!!


How serious of overcharged？: How serious of overcharged？ US Info & Data： “We dug deeper and deeper and found that this system of overcharging is virtually universal ..... It runs across the entire mortgage lending industry” Former New York State Attorney General - Robert Abrams


How serious of overcharged ?: How serious of overcharged ? US Info & Data： Warning!: This is not someone else's problem..... "If you have a mortgage, there is a 50% chance that by fraud or incompetence your bank is overcharging you” Former New York State Attorney General - Robert Abrams


How serious of overcharge？: How serious of overcharge？ US Info & Data： “Mortgage errors are costing average Americans $8 to $10 Billion dollars each and every years” Federal Deposit Insurance Corporation (the US government agency that Insures or guarantees Americans’ bank deposit)


How serious of overcharged ?: How serious of overcharged ? Only happened in US ? Australia – The Sydney Morning Herald investigation report showed that 54% of monthly statement appeared mistake. 80% of its were beneficial to banks . Average monthly mistake amount was $242. Canada – The Halifax Limited reported that the Royal Bank has returned $1.3 billion to its 200 thousand customers due to calculation mistake traced from 1992. U.K. - The Sunday Times investigation report showed that the banks’ overcharged interest is £ 1 billion every year.


How is the situation of Malaysia ?: How is the situation of Malaysia ? No Transparency. No Mortgage Audit Act No Investigation Report Don’t Know！


Transparency？ : Transparency？ Personalized Amortization Schedule BLR %(Base Lending Rate) Compounded Interest


Slide29: Transparency（1） Personalized Amortization Schedule


Transparency （2）: Transparency （2） Adjustment of BLR % (Base Leading Rate) 2005 2007 6.00%  6.25%  6.50%  6.75% Extended 136 mths！(11 years 4 months) Extra RM122,500 interest！ * Eg: Loan RM150,000 , 6% interest, Payment: RM900 6.00% = RM 900, 360 mth(30 years, int RM173,700) 6.75% = RM 900, 496 mth(41 years, int RM296,300)


Extended 136 months？Possible？: Extended 136 months？Possible？


Transparency (3)Daily Rest vs Monthly Rest.: Transparency (3) Daily Rest vs Monthly Rest. A (Daily Rest ) 01/01/07 02/01/07 03/01/07 (365 Times) RM100,000 RM101,000 RM102,010 Saving $ 01/01/07 01/02/07 01/03/07 (12 Times) RM100,000 B (Monthly Rest)


You might have thrown away Thousands of Extra Dollars in Interest to Your Bankers due to lack of knowledge of (Partial Prepayments): You might have thrown away Thousands of Extra Dollars in Interest to Your Bankers due to lack of knowledge of (Partial Prepayments) 3 types of Wrong Methods when making extra payment ： 1. Excess Payment 2. Advance Payment 3. Principal Reduction Partial Prepayment Correct Method :


Wrong Method (1)：Excess Payment: Wrong Method (1)： Excess Payment Flexi Loan = Loan Acc + Current Acc ( Auto debit ) = Cheque Book / non-cheque book = ATM Card = RM10.00 Monthly Charges


Concept of Flexi Loan: Concept of Flexi Loan Flexi Loan


Slide36: Excess payment


Slide37: Attention！ Statement of Account : Summary of Account Activities： Debit & Credit (Transaction Record) Wrong Method (1)：Excess Payment Amortization Schedule


Flexi Loan: Statement of Account: Flexi Loan: Statement of Account


Wrong Method (2)：Advance Payment: Wrong Method (2)：Advance Payment Term Loan


未来等额Advance Payment: 未来等额 Advance Payment 1. Into The Suspense Account (Inverse Order Of Maturity). 2. $ 5000 = Sept $1000 (800int+200prin) ($4,200) Oct $1000 (800int+200prin) Nov $1000 (800int+200prin) Dec $1000 (800int+200prin) Jan $1000 (800int+200prin) 4000 + 1000


Slide41: Wrong Method (2)：Advance Payment Practice (B): Inverse Order of Maturity


What a Suspense Account means in your loan agreement?: What a Suspense Account means in your loan agreement? Wrong Prepayment 3:


Slide44: Wrong Prepayment 3:


Wrong Method (3)：Principal Reduction: Wrong Method (3)：Principal Reduction Saved Small Portion of Interest “Only can save small portion of interest”


Slide47: Wrong Method (3)：Principal Reduction Principal Reduction - RM50,000.00 Payoff in 360 Months Shorten 0 Month Total Interest RM 279,017.80 Interest Savings $ 69,754.45 20% Partial Prepayment - RM 50,000.00 Payoff in 209 Months Shorten 151 Months 41.94% Total Interest RM 146,636.94 Interest Savings $ 202,135.30 57.96%


Slide48: Principal Reduction 1 Reduce Repayment: RM1330.60 Maintain Tenure Wrong Method (3)：Principal Reduction Original Repayment: RM1663.26 Principal Reduction 2 Maintain Repayment: RM1330.60 + 332.66 Inverse order of maturity


Correct Method：Partial Prepayment: Correct Method：Partial Prepayment “Saved the most interest”


Slide50: Correct Method ：Partial Prepayment Principal Reduction - RM50,000.00 Payoff in 360 Months Shorten 0 Month Total Interest RM 279,017.80 Interest Savings $ 69,754.45 20% Partial Prepayment - RM 50,000.00 Payoff in 209 Months Shorten 151 Months 41.94% Total Interest RM 146,636.94 Interest Savings $ 202,135.30 57.96%


Slide51: Monthly Repayment $1,621.50 Term: 360 months Principal $ 250,000.00 - 10,000.00 $ 240,000.00 $ 250,000 ( 333,783.29) VS $ 240,000 ( 320,388.76) Total Interest $ 333,783.29 $ 320,388.76 $ 250,00.00 Loan $ 240,00.00 3. Principal Reduction Reduce Principal $10,000 Difference $ 13,394.53 Monthly Repayment $1,556.64 Principal Reduction


Slide52: Monthly Repayment $1,621.50 Interest Rate: 6.75% Term: 360 months Loan $ 250,000.00 Shorten Period， Saving Interest！ Payoff Loan Earlier. 4. Partial Prepayment Extra payment $10,000.00 Total Interest $ 333,783.29 $ 277,005.43 $ -56,777.86 $215.25


Banking info Booklet: Banking info Booklet


PARTIAL PREPAYMENT OFTHE OUTSTANDING LOAN: PARTIAL PREPAYMENT OF THE OUTSTANDING LOAN


PARTIAL PREPAYMENT OFTHE OUTSTANDING LOAN: PARTIAL PREPAYMENT OF THE OUTSTANDING LOAN Many borrowers find it useful to shorten the loan tenure by making partial prepayments with surplus saving or annual bonus. Partial prepayment can be in any amount. However, some financial institutions may impose restrictions on the amount to be pre-paid while others may impose a penalty. It is extremely effective in reducing the interest charges you would have to pay if prepayments are made during the early years.


Partial Prepayment: Partial Prepayment www.bnm.gov.my


Good News!!!: Good News!!! We Can Help You Save Up To 90% Mortgage Interest and Time!


Find Out The Truth !: Find Out The Truth ! The first step to help yourself.. Inquiry Form


自The First Step To Help Yourself…: 自 The First Step To Help Yourself… Check Your Loan A/C information！ 8 Basic Information: As at: No. of Installment Paid: No. of Installment Remaining: Current Outstanding Balance: Current Interest Rate: Monthly Repayment Amount: 1st Installment Commencement Date: Date of Maturity：


Complaint: Complaint


We provide a F O C Diagnosis of Your Mortgage !: We provide a F O C Diagnosis of Your Mortgage !


Seriously make an appointment with your consultant…..: Seriously make an appointment with your consultant….. No Problem !!! CONGRATULATION


We Provide solutions : We Provide solutions SAVED MONEY SAVED TIME


Approval Letter from Bank: Approval Letter from Bank


Senario of 5 days Training Camp in Five Star Hotel 8am – 6pm .(J.W. Marriot Hotel .K.L) DAY 1: Senario of 5 days Training Camp in Five Star Hotel 8am – 6pm . (J.W. Marriot Hotel .K.L) DAY 1


Senario of 5 days Training Camp in Five Star Hotel 8am – 6pm .(J.W. Marriot Hotel .K.L) DAY 2: Senario of 5 days Training Camp in Five Star Hotel 8am – 6pm . (J.W. Marriot Hotel .K.L) DAY 2


Slide70: Senario of 5 days Training Camp in Five Star Hotel 8am – 6pm . (J.W. Marriot Hotel .K.L) DAY 3