You may wonder who will provide this SIM50 service. The answer is AceScube.

AceScube (M) Sdn Bhd is the pioneer company to provide 99% accuracy mortgage loan ledger with BLR management in Malaysia. If the difference between your current outstanding balances against the SIM Ledger is more than 1%, the company will refund you full amount with no question. But until now there is no complaint on the accuracy. If there is a case, the answer is 95% were due to information being given is incorrect or there could be external charges.

Why this service is important to us? Ask yourself when BLR went down did you get any rebate? What about when BLR increase did you know how many months is your loan tenure extended? The answer is NO. If BLR increase, AceScube will re-calculate and re-send you a new ledger with the new figure you need to pay for your monthly repayment. For your information, current BLR rate is 6.05% but the average BLR rate for the past 20 years is 8.77%, so do you see there is a potential that BLR keep increasing in future?

How fast you will know the accuracy? Just 3 days after your first payment follow SIM50 Ledger. You can call to the bank and ask for the outstanding balance, then compare it with the figure stated in the SIM50 Ledger. It is only few dollars different. The objective of SIM Ledger is to avoid extra interest or tenure that is payable.

Make it simple, this company will get information from you and they will calculate how much you need to pay for monthly repayment. You only need to pay for the fees which is 1.5% of your outstanding loan amount (if is below RM 1 Million). If above RM 1 Million will be 1.5% of 1 Million plus 0.5% of total loan amount – RM 1 Million. Just pay 1.5% and this help you to save hundred thousand of your money. This is another way of saving money.

If you have any question or need some consultancy, you can contact me at 012-328 2066 KC.

Ok, let’s continue on the BLR Management.

But before this, I want to share something with you guys. After I attended the talk, I joined a course on last weekday. I took leave for that, it was a day course. The course is to help you to more understand how the BLR works, what are the background and some technical knowledge.

BLR fluctuated almost every year. This year already increased twice on March and May. The might be another round of adjustment on coming July/Sept. BLR play important role in property loan. The total amount that we going to pay back to the bank are mainly depends on the BLR.

For e.g. If the loan amount we signed was RM 200,000.00.Tenure is 30 years and BLR is 5% p.a. Based on this figure, the total amount plus interest we need to pay back to bank is RM 500,000.00. Can you see? The amount that we pay back is equal to 2 units of your property. Don’t think that you pay RM 1,388 every month for 30 years and the loan can be settling. If the BLR rate increases then you have to pay extra few years for the increased interest.

I believe many people know that for the first few years, the proportion of monthly payment is more to interest rather than principle. It might be 90% to interest and 10% to principle. The money we pay will cover the interest first then balance to principle. It might have the case that the monthly figure you pay does not enough to cover the interest. If this happen means “Friend, you have to pay extra many years to settle your loan”.

The course give us a clear picture that what is our current status, where is our money goes to and how to settle the loan in shorter period. This is where the SIM50 came in. SIM50 stand for Slash Interest Methodology into 50%. With this methodology it will cut the outstanding loan interest into half and the tenure into half. There is no way to cut the principle, that’s the money we borrow, so must pay back.

I will explain more about this in coming post.