What people on CIMB HomeFlexi Smart Mortgage Loan need to know on saving interest payments - Important ‼️
A while back (around 2 years ago) I took a CIMB HomeFlexi Smart loan for finance purchase of a condominium. I applied for CIMB HomeFlexi Smart as I was sold that using this flexi loan allows interest savings if extra cash is deployed into the loan account.
I put in a lump sum into the loan account and left it there without any monitoring as I still had other loans to service that needs more constant monitoring.
I found out just recently, the extra amount I put into the loan did not reduce the interest I was paying. Instead, the amount was parked under "Advance Loan Payment" category which did not help save any interest.
The CIMB operator taught me that to reduce loan amount, I had to select the drop down menu when paying loans via CIMBclicks and select the "Reduce Loan Principle".
I'm literally kicking myself now for not knowing this as I would have saved a lot of money on interest. I believe this is a dirty secret CIMB doesn't want their customers on CIMB HomeFlexi Smart to know. This issue still can be rectified via CIMB call center, just inform the operator to convert the advanced loan payments to reduce loan principle payment.
I believe this practice could also be the same at other banks so consumers need to know about it.
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