This is my existing loan offer letter back in Dec 2010 from Bank A.
Total loan = RM 321k, SPA only signed by Q4 2011 due to developer wanted to launch an adjacent residential condominium block.
Mortgage repayment started in Sept 2014 after Vacant Possession
In June 2015, I decided to refinance only the outstanding portion of my loan.
Below is the redemption statement I got from Bank A. My outstanding balance is RM 319k only, but I need to fork out an extra RM 17k (337 – 321).
Feeling something is not right, I checked further and discovered the breakdown is as below
- Contingency fees = RM 3,162
- Zero Entry Cost Chargeback = RM 4,817
- Settlement Penalty = RM 9,634
The question is – why is the penalty clause applicable here?
Note: Some people may think the lockdown period is 3 years from the date of signed loan offer letter. This is normally not the case. It is counted from the date of first disbursement by the bank to the developer, which might be later (it usually is). In my case, upon checking with the bank, it is in May 2012. In spite of that, the 3 years lockdown should have ended by May 2015, and I should not be penalized for 3% of the outstanding loan amount.
Therefore, I submitted the “appeal” – which is a politically correct term for bank’s mistake in blindly penalizing me.
The revised redemption statement is as such at RM 322k – no more penalty fee and also waived zero entry cost charge back.
Lesson learnt: Two words – Caveat Emptor!