OCBC Bank (Malaysia) Berhad (OCBC Bank) is offering its Premier Banking clients a range of financing solutions that can be tailored to suit their unique needs. The need for such flexible financing solutions comes on the back of the critical role liquidity plays in the financial health equation.
OCBC WEALTH FINANCING FOR GREATER FINANCIAL FLEXIBILITY
Gaining access to much needed cash can be a challenge when the bulk of your wealth is tied up in investments that have not matured or that are not ready for divestment. By using existing portfolio holdings – such as fixed and time deposits, unit trusts and selected investment grade bonds – as collateral, OCBC Bank’s clients can now secure a credit line with OCBC Wealth Financing. This way, they can gain access to additional funds to capture market opportunities. They can then re-invest the funds in the Bank’s holistic suite of wealth products to further diversify their portfolio without liquidating their invested assets and without the need for additional cash outlay.
According to OCBC Bank (Malaysia) Berhad (OCBC Bank) Managing Director & Head of Consumer Financial Services Ms Anne Leh, the time has come for the Bank’s affluent clients to reap the benefits that accrue from such flexibility.
“For clients who want standby funds to quickly take advantage of market opportunities, OCBC Wealth Financing is ideal thanks to its flexibility to roll over balances and customisable financing tenures of 3 or 6 months. Clients can also enjoy not having to fork out processing, commitment, and rollover fees as well as lower interest rates by choosing from 7 different currency options from which to draw the credit line. They can stay invested without having to worry about potential opportunity costs,” she says.
MULTI-GENERATIONAL MORTGAGE, TOP UPS AND REFINANCING FOR DIVERSE NEEDS
Buying real estate is a precursor to building wealth through property appreciation. Properties also offer stability and certainty, and they provide a tangible benefit to clients looking for a safe way to leave behind legacy wealth with their family.
Head of Consumer Secured Lending Goh Chyn Huey says, “A mortgage can be structured in the form of a multi-generational loan, which allows for a parent and child to be joint applicants so they can get a stronger credit rating, qualify for a higher financing amount, and receive a longer financing tenure.”
“Clients with existing properties will also benefit from mortgage refinancing. The market value of their properties will have appreciated, which allows them to get a new financing amount with lower interest rates. For instance, by signing up for OCBC Manarat Home-i, which offers no early settlement charges or lock-in period, you can cash out your equity based on the market value of your property and reinvest it in other assets. With savings from our fees-absorption package of up to RM20,000, there is now funding at a lower cost of financing.”
Clients with excess cash may also pay down their outstanding loans to save on interest costs and withdraw surplus amounts that have been repaid for exigencies.
INVESTING IN THE FUTURE WITH SUSTAINABLE FINANCING
OCBC Bank recently rolled out its residential solar panel financing plan for individuals as part of its thrust to make sustainable practices even more accessible to consumers in the country. Solar panels can save up to 85% or even more on electricity bills after a one-time installation. The Bank is offering those eligible the option to finance the entire amount required for the solar panels.
Ms Leh says the introduction of solar panel financing is part of the Bank’s drive toward a holistic approach to environmental, social and governance (ESG) practices, which includes making environmentally friendly installations more accessible to consumers.
“To make good our commitment to the green cause, we are working with our solar panel partners to promote a cleaner and more sustainable environment. Making solar energy more accessible to everyone is the first step.”
OCBC Bank’s clients can opt for refinancing with an increase in line of completed residential property from another bank with the OCBC Solar Panel financing or a top-up amount on an existing OCBC Home Loan/Home Financing-i with the OCBC Solar Panel financing. This applies to completed residential properties only. Alternatively, OCBC Bank clients may also opt to convert their solar panel payment into smaller and easier-to-pay monthly instalments with OCBC’s Easy Payment Plan (EPP).
NOT JUST ABOUT WHAT TO FINANCE, BUT ALSO WHERE
As the affluent segment become more global in their outlook, many Asian families are buying residential properties in the United Kingdom and Australia as a diversification strategy. OCBC Bank offers overseas property financing to those keen on expanding their investment portfolio with overseas residential properties. With financing available in both MYR and foreign currencies, clients can enjoy a MYR-denominated loan without foreign exchange risks on their monthly repayments throughout the loan period.
“The desire to build an investment portfolio with assets from non-correlated markets remains a compelling reason for investors to look for profitable alternatives in international real estate. And unlike local properties where you need to serve progressive interests, off-plan properties overseas usually require settlement upon completion only. This allows clients to plan out their cash flow in advance and anticipate advantages in foreign exchange movements,” Ms Leh highlights.
THE IMPORTANCE OF PLANNING WELL
The right financing solution can be part of an effective strategy to build wealth over the long term while ensuring cash flow is available to meet existing financial obligations and to accomplish plans for the future. Optimal financial health is not only important to minimise liquidity risk and to increase agility, but also when applying for additional financing.
For more details about OCBC Bank’s financing solutions or to consider which approach is right for you, please speak to an OCBC Premier Banking Relationship Manager or call the OCBC Premier Hotline at 03-8315 4288.
Terms and conditions apply.