Plot a graph and briefly describe the monthly fixed deposits rate (12 months), savings deposits rates...

Plot a graph and briefly describe the monthly fixed deposits rate (12 months), savings deposits rates and lending rates of commercial banks for the period between Jan 2018-July 2020. You may plot the graph in excel, copy and paste in the word document for your submission.

Based on the information in (a), write an essay, approximately 500 word, to suggest three ways of financing the purchase of a house in Malaysia. In suggestion, compute and compare the cost of each method of financing.

Expert Solution

The following are the required rates polotted in the graphical form :-

Date	Savings Deposit	Fixed Deposit	Lending Rate
	Percent per Annum	Percent per Annum	Percent per Annum
	FID_PA	FIMM_PA	FILR_PA
	Units	Units	Units
01-01-2018	2.50	9.41	10.25
01-02-2018	2.50	8.95	10.25
01-03-2018	2.50	8.25	10.25
01-04-2018	2.50	11.03	10.25
01-05-2018	2.50	8.75	10.25
01-06-2018	2.50	9.00	10.25
01-07-2018	2.50	8.00	10.25
01-08-2018	2.50	9.25	10.25
01-09-2018	2.50	8.13	10.25
01-10-2018	2.50	8.20	10.25
01-11-2018	2.50	7.50	10.25
01-12-2018	2.50	8.70	10.25
01-01-2019	2.50	8.27	10.25
01-02-2019	2.00	8.05	10.25
01-03-2019	2.00	7.50	10.25
01-04-2019	2.00	9.25	10.25
01-05-2019	2.00	10.36	10.25
01-06-2019	2.00	7.07	10.25
01-07-2019	2.00	8.00	10.25
01-08-2019	2.00	5.00	10.25
01-09-2019	2.00	7.78	10.08
01-10-2019	2.00	8.50	10.25
01-11-2019	2.00	7.50	10.00
01-12-2019	2.00	7.35	10.00
01-01-2020	2.00	7.27	10.00
01-02-2020	2.25	7.30	10.00
01-03-2020	2.25	7.30	10.00
01-04-2020	2.25	7.20	10.00
01-05-2020	2.25	7.13	9.70
01-06-2020	2.25	6.75	9.70
01-07-2020	2.25	7.25	9.70

The graph plotted in excel is as follows

Financing options in Malaysia:

1) Term Loan – Term loan is the most common type of financing where the loan amount provided by the bank is aromatized with fixed payments for a particular and fixed period of time

2) Non floating based fixed rate loan- In this type the rate is contracted and fixed and it dons t change with the changes in the benchmark lending rate. It provides shield against the uncertainty in the changes in the interest rate of the market

3) Repayment based Mortgage – The house property is collateralized against the loan sanctioned as a security by the issuing organization , and the legal title is transferred on the completion of the mortgage period.

4) Reverse Mortgage – Here the house property is amortized at the beginning as per the LTV or loan to value ratio.. After a specified period of time the owners will leave the property and bank will sell off the asset in the secondary market in order to realize the remaining value of the collateralized payments .

5) Mortgage on conditional sale – The title and ownership is legally effective on successful meeting or completion of conditional agreement from the loan issuer

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