As some of you might already know I bought a property in August, and the banking procedures were dragged until September where RHB Bank suddenly wished to change the loan amount. My agent, agent S was a 22 year old mobile agent I found through word of mouth. She was not helpful because she didn’t really know what she was selling, and I suspect she is new in the field. Right now I realized how dumb I am not to realize with that age she must be a fresh graduate. (I have nothing against fresh graduates in other fields but I do think experience is critical when it comes to money related matters).
I was afraid that RHB bank will impose the 1% penalty to me because I wanted to cancel the loan (how can I proceed there is not enough loan amount!?) so she gave me her best advice – keep quiet so that the bank will cancel the loan. And I did just that and got off the wagon without having to pay any penalty. I also immediately looked for other options.
Al-Rajhi was fast, they contacted me immediately after I filled in the web form but too bad they currently don’t provide loans for properties under construction although the property was 90% completed back then.
And then I contacted Money3. They were also very fast and with the network they have with banks they were able to assess my loan requirements and made several applications. Agent K was helping me with everything and he was very professional. OCBC Bank approved my loan in September and it was time for signing the offer letter but agent K was not available because he was on paternity leave. Agent J took over and it was overall a pleasurable experience as he handled everything for me.
Everything were excellent until it was time for the MRTA (Mortgage Reducing Term Assurance). He was also an AIA agent and tried to sell the Wholelife package (payable yearly) to me which was quite a good package as I will be able to break even and get some profit after ~15 years. He was stressing on how important to get an insurance otherwise OCBC will not be releasing my funds. If the bank does not release my funds on time there will be interest to pay to the developer. When he first prepared a quote, I had to pay ~RM3600 yearly but when he called me back in early November it was at ~RM4969 so I told him I want to look for other options. He said that is not possible, the bank will block my funds. He never called me back until today.
I made the ultimately correct decision when I decided to call OCBC directly and I was told that OCBC does not have any requirements for me to have the insurance. It was optional! So agent J lied to me in my face. At that moment I lost all my respect for the guy. When OCBC released the funds to the developer it was proof that agent J was lying.
I realize the importance of MRTA and I was planning to take it via OCBC itself or using Prudential but I suddenly went busy. I will do that soon.
Back to the RHB issue, it was such as a waste of time and money. For instance agent S took RM10 for account opening and never returned it (she called me afterward telling me I had to open a current account because of the facility I requested). RHB bank penalized me RM20 for closing the current account earlier than 3 months. The lawyers charged me RM160 for the cancellation. That’s already RM190 there not including my gas cost for traveling. And the worst case of all is that the developer is now charging me with ~RM4280 for the late interest fee (period between when RHB approved my loan until when OCBC released my funds). I have already sent them an appeal to remind them my case and can only hope that they can consider exempting the fees.
That’s it people, my only advice is to find the right people (agents) and even if you find a good one please avoid trusting them 100% as when it comes to money people will try to trick you. In the RHB case I do blame agent S and the bank itself and in the Money3 case I don’t blame Money3 but the agent himself for being an as***le. And if you’re wondering, you don’t pay Money3 for the services. The bank pays them commissions.