Maybank2u Mortgage Calculator

EMI Formula:

\[ EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N - 1} \]

Equated Monthly Installment (EMI):

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1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month for mortgage loans through Maybank2u.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

\[ EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N - 1} \]

Where:

\( P \) — Principal loan amount (MYR)
\( R \) — Monthly interest rate (annual rate divided by 12)
\( N \) — Loan tenure in months
\( EMI \) — Equated monthly installment (MYR)

Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan over its tenure, including both principal and interest components.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment and plan their budget accordingly when taking a Maybank mortgage loan.

4. Using the Calculator

Tips: Enter principal amount in MYR, annual interest rate in percentage, and loan tenure in months. All values must be valid (principal > 0, rate > 0, tenure ≥ 1 month).

5. Frequently Asked Questions (FAQ)

Q1: How does Maybank calculate interest?
A: Maybank uses reducing balance method where interest is calculated on the outstanding principal each month.

Q2: What affects my EMI amount?
A: EMI depends on three factors - loan amount, interest rate, and loan tenure. Higher amount/rate increases EMI, longer tenure reduces EMI.

Q3: Can I change my EMI during loan tenure?
A: EMI remains fixed unless you opt for Maybank's flexi loan features or request for loan restructuring.

Q4: Does EMI include all charges?
A: EMI includes principal and interest but excludes other charges like insurance or processing fees.

Q5: How to reduce my EMI burden?
A: You can either opt for longer tenure or make partial prepayments to reduce principal amount.