For those of us who intend to take up mortgage loans, better fix-up quickly.

It seems all the banks have called for a truce and agree that mortgage rates will not go below an agreed rate. A figure something like BLR - 1.75% is expected, no ZEC

I've heard rumours of this for a while, but paid no attention to it.
Now it seems this will be implemented as of 1/11/09.


What ABM should work on instead ; is to get members bank to work on improving their efficiency and bring down their spread of 3% !

Most banks are prepared to 'lock in' your case for you if you sort out your application within the week or so.

This post has been edited by ??!!: Oct 30 2009, 02:41 PM

whats the rate effective 1 nov?

will this affect for those signed the offer letter prior to nov 1? can bank retracts the offer given and re-offer the new inferior rate?

This post has been edited by sotong168: Nov 1 2009, 10:39 AM

those who sign before ok.. those who apply before 1 nov, hard to tell

i thought there was a news that says that this is not happening?

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Added on November 1, 2009, 11:13 ami think it wun; it is according to the day you apply for the loan

This post has been edited by leongal: Nov 1 2009, 11:13 AM

isnt this price fixing? what on earth is bank negara doing? this is not fair for consumers. yes it has come into effect on 1/nov/09, i heard from a banker.

imagine all shampoo/nasi lemak fixed their price higher, who gains? them....this is against the law in most countries i belief.

Bro.. your wind "kin" or not (real or not)

Y the articles states other wise by the Executive Director of The Association of Banks in Malaysia

No standardisation of mortgage rates, says Association of Banks

http://www.theedgemalaysia.com/personal-fi...n-of-banks.html

There are things needed to be clearified properly before making such claims:

1) OPR - Set by Bank Negara according to country economy situation.

2) BLR - Not set by bank negara, but bank varies them according to OPR, thats y some bank have BLR 5.5% some have 5.55%. You dont see all banks decrease BLR proportional to OPR. When OPR was 3.5%, BLR was 6.75%.. When OPR was 2% (minus 1.5%), BLR was 5.55$ (minus 1.2%), some 5.5% (minus 1.25%).. There is not fix rule by bank negara they the amount of decrease in BLR must follow OPR.

3) Mortgage Rate (BLR+/-X.xx%) - Set by bank to different individual according to their credit profile..

So Bro.. Part (1) is definately control by BN, but between (2) and (3), which one will be fixed??

It's 3). There are rumours that they wouldn't go into price war as it is killing their profits.
Thus the rumours is that there wouldn't be any more -2.2% in the market whereby the lowest would maybe only -1.8%.

The "local big boys" have already agreed to the pricing cartel above. There only a few local and foreign players that are still vehemently protesting.

Frankly, I'm disgusted that "cartels" like this can even come into fruition. It's anti-competitive, and totally against the interests of all consumers & borrowers.

Heard from reliable sources that -1.8% is the proposed standardized boardrate. Upon deviation approval - maximum is -2.0%. Apparently, it will not go lower than that.

I also heard that there are a few tier of rates:

Loan amt less than RM150K = - 1.5%
Btw Rm150K to RM500k = - 1.6% - 1.8%
More than RM500k = max -2.0%

However, for those that bought from developer which offer interest absorption scheme, the rates will remain unchanged as agreed earlier btw developer and its panel banks. Nevertheless, they might revise it. So, better lock in the good rates quickly.

now loan 200k get blr-2.20..

This post has been edited by Raub: Nov 1 2009, 10:01 PM

Eugene,



The statement could be naughty..technically, they don't standardize the rates.
Of course, OPR and BLR will not be touched.
The variable we are talking about, will be the spread.
They don't standardize the rates, but can come to a tacit agreement not to go below a set floor rate(spread)

Let's see what happens in the coming days/weeks

if there is such things, im sure consumer associations and any individual may take a class action(court) against them. hope they wouldnt be so silly.

Economic Recovering?
BLR increasing by days.

house prices increasing by days also..

Maybank had revised their rates last friday, 30th Oct 2009. Today, PBB will revise their rate. On wednesday 4th Nov 2009, OCBC will revise the rate. The rest i dont know...

whats the rate now like?

HLB?!

MBB -1.9% whole tenure, NZMC
EON -1.9% whole tenure, NZMC

the rest i dont know.

CIMB will revise on 6th NOV 2009

(info from banker, also my friend)

ya tats what i heard too, just to add in the list

SCB -1.9% NZMC, not sure is whole tenure or not

any confirmation yet?

In my opinion this agreement between banks won't last long one lah...

Now, imagine the scenario A,B,C bank standardized their rate, then what will consumer look for? Consumer will look for a bank that provides the best service maa. If A Bank's service is lousy, then sure will lose out de, so after some time, all the customer will flow to B and C bank. When this happens, A bank will red eyes and want a share of the market mah, so they will start to play something outside the agreement to take back the customer base. By the time A Bank does that, D,E,F,G will follow, and eventually B,C will go back into the competition again...

Just my personal opinion, i feel that overseas banks provide much better customer service than local banks...

Confirmed. Max is -1.8%, non-ZEC. This does NOT affect new launches, only refinancing and sub-sale.

sub sales?!@

RHB starting next week

I went to a softlaunch recently and understand it will affect new lanches.

Spoke to RHB agent and found
- There is no more 0% during consturction, maybe it vary from developers..
- The rate is BLR - 1.X

Actually its confirmed but maybe not written black and white

“Our market survey shows that mortgage spread has been reduced from the previous BLR minus 2%-2.3% to BLR minus 1.6%-1.9%,” the report said."

SOS: http://biz.thestar.com.my/news/story.asp?f...22&sec=business

so now is -1.9% blr and RM50 charges for credit card when u open your loan account with bank. Either way, house buyer is losing out and those doing mortgage sales will have a tougher time ahead.

apply housing loan need to apply credit card as well u mean

not sure about other bank bcos i sign up twice with SCB,both time they also give credit card.

i aslo get cc from scb..luckily it come preloaded with 50 for gold and 100 for plat..thought can earn money

UOB today onwards BLR -1.8% whole tenure nzmc. PB customer -1.9% whole tenure nzmc. latest info... ^^

Maybank:
http://www.maybank2u.com.my/mbb_info/m2u/p...sonal/LOA-Loans
Rates
Financing rates are very competitive with rates of as low as BLR - 2.20% for under construction properties until 31st December 2009 and BLR - 1.80% for completed properties (effective 2nd November 2009).

This post has been edited by hong0228: Nov 3 2009, 04:21 PM

the below is what i copy from other forum posted by a HSBC banker...

For Completed Property & Under Construction Property:
ZERO ENTRY COST Package
Interest Rate:
1st Yr : BLR - 2.20%
2-5 Yr : BLR - 1.70%
Thereafter : BLR - 1.90%%

NON-ZERO ENTRY COST Package
1st Yr : BLR - 2.60%
2-5 Yr : BLR - 2.10%
Thereafter : BLR - 2.10%

*Last updated:- 01/11/2009

read tis: http://biz.thestar.com.my/news/story.asp?f...89&sec=business

look likes not all the bank are following the rate. i just check with EON bank and they still offering -2.25 with T&C apply.

Citibank still same. if interest with citibank, let me know.

As far as I know, I've never heard of Citi offering BLR - 2% or -2.2%.
So when you meant same is it because before and after also it's offering -1.8%?

dont forget that citibank's blr is higher than most banks

depends on loan amount BLR-2.3, BLR- 2.4 also possible. still zero at the moment.

no news from marketing at the moment. so still selling old rates

This post has been edited by airline: Nov 4 2009, 09:44 PM

emm..correct me if im wrong. for loan below than 250k, CB giving BLR-1.8%. i guess BLR-2.3% or -2.4% for loan above 500k right

can get la.. if 250K can get BLR-2.2/2.3.

make sure u accept, and not blindly submit application,

5% RPGT ..and now standardized loan rate, is property still a good investment? Poor for peasant like me, sigh..
Which bank is still offering good loan rate (e.g. BLR-2.2, 2.3 & 2.4%), Thank you

Source:Home loan rate hike inevitable

Quote:
The analyst said the banks had agreed to end the mortgage price war. “We understand some banks have started to raise mortgage rates for new applications since this week.

“Mortgage rates have been standardised to BLR minus 1.8% from BLR minus 2.3%, while banks are no longer funding upfront costs such as legal fees and other costs.”

what kind of crap is this? normally banker will charge higher interest rate if they give ZEC package as compared to non-ZEC. The moving cost is built into the loan interest rate...not freebies to consumers.....

apa dia cakap?

well, you could still put the costs of lawyer fees, stamp etc into the loan itself, ie have a higher loan amount than the price in the spa. of course, not all banks allow that if the margin exceeds a certain amount, but its worth a try.

and you will get to enjoy the 'lower' interest as it is classified as non-ZEC. yeah i know, its not really 'lower' at all compared to the usual blr-2.4

2cents

I just got the nzec package from ocbc. My legal fees is financed into the loan amount. 1st 3 yrs BLR-2.3, thereafter BLR-2.4,

i did a check though i am very well settled with a loan (RHB is probably not so happy about it - it's effectively BLR-2,5 and they did pay for all the upfront costs of this flexi pay and withdraw they customized for us after a hell a lot of haggling) and made some calls to a few banks just to check this friday.

it appears that with a low margin of finance (i.e. 40% capital on hand) you can negotiate a rate of BLR -2,4 over the phone. entry costs are not financed though. seems they figured that this is not really good idea in case the customers pays back to fast.

if you are a good customers (low risk of default and good paymaster) you should have no problem to get rates significantly better then published. for 90% MOF i dont see the rates to remain as good as they used to be.

Here is some news from me who work in Public bank:
Currently Outside market there is no more BEST rate as most of the banks are "standardize" the rate within BLR - 1.7% to BLR-1.9% ( minor deviation due to whether got purchase MRTA, higher margin & etc ). Good news is that this Standardaziation is only applicable to subsale property & refinancing. Purchase from developer is still able to FIGHT rate among the offers.
Another sad news is that there is no more ZERO COST. More sad is that this is applicable to all type of loan, included purchase from developers. Hence, people maybe consider more things on their loan since the rate is not the priority.
HOW TO CHOOSE THE MOST SUITABLE LOAN?
New things to be consider now:
1) Whether the bank near to your house to save your travelling cost and parking fees
2) Bank does offer legal fee financing package up to 100%
3) Bank does waive your valuation cost which is range from RM250 to RM 1500 ( most of the banks need to charge valuation fee )
4) The efficiency of loan disbursement staff to release the loan before due date. This help you to avoid cost of late interest charged by developer or vendors. ( Normally the staff in each branch is faster than those are centralize in KL because of they know you and you can easily get in touch of them )
5) A competible of whole package - High loan margin, longer loan tenure, lesser Early Settlement Fee.
6) The speed of approval and processing ( branch manager got authority to approve the loan will get faster approval )
7) The completed system for after sales service ( for example, after few years you may want to withdraw EPF to pay off loan, revise instalment amount or increase the loan limit)

Hence, do share more about your consideration to help us improve our loan package...

does that means we can still get the higher minus rate if we're purchasing new property in construction?!

good advice
i wished you would have posted earlier. i would have saved on the valuation fees if i knew it earlier.

If my loan package is flexi, Can my EPF withdrawal (say after few yrs later) to be bank in to my other designated account instead of loan account ?? ?

Yes. Due to the bank had tie-up with developer an agreement previously.

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Added on November 10, 2009, 9:32 pmUnfortunately, the EPF money will be minus out the loan principal straight away without withdrawal.
Alternative way is that after EPF withdrawal to this loan you can refinance to another bank to cash out the money.

This post has been edited by Bon Lee: Nov 10 2009, 09:32 PM

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Added on November 10, 2009, 9:32 pm

Unfortunately, the EPF money will be minus out the loan principal straight away without withdrawal.
Alternative way is that after EPF withdrawal to this loan you can refinance to another bank to cash out the money.

[/quote]


Yes, good point. But hv to wait for 5 yrs lock in period

Anyway, i just received HLBB offer letter for mortage plus (flexi) loan package, ZEC with BLR - 2.00% lar

ANyone saw yesterday Sun Paper advertisement by SIme Darby?

I saw there BLR - 2.4%.........

loan amount? RM500k and above or below?

THey just refer to Sime Darby project....ranging from 300k to millions.....

haiya..too bad..dont understand why goverment do this..

it make it become harder for people to buy a house. unless the lower the cap for BLR as well.

i dun think the govt did anything about this rate thing...

actually, many bank still giving BLR-2.xx% for under-con property including OCBC...

they should do something right?

I think the "cartel" is in a way sanctioned by the government aka Bank Negara.

No way, the increase in pricing is without the government's tacit approval.

This is consider as purchase from developer. Previous rate still applicable. ( 1st year 0% thereafter BLR - 2.3% )

correct.

what is the best rate now for loan amount RM70K, 10 years loan period, sub-sale? thanks
one loan agent quotes me BLR-1.3 to 1.4%. But the banks(HLB and RHB) i visited quote me BLR -1. is this ok?

This post has been edited by lot11: Nov 17 2009, 11:31 AM

Just a one week late, now mostly all bank loan rate offer is BLR -1.8/1.85 after i do the enquiry. My loan is RM 400K. If i act fast do the bank approval maybe can get BLR -2.4.....Now make me headache.

Try Citibank...u may still get a chance

citibank, this week last week. i can help u. Haha

If u have read Malaysian Business issue Nov 16 - Nov 30; it says (in page 24) - Malaysia recently limited its mortgage lending rate to BLR -1.8% from -2.3% previously...

ya saw it..huhu