QUOTE(zuiko407 @ Mar 12 2010, 10:15 AM)
checked with OCBC yesterday, MLR remain the same 4.4%. so my interest remain MLR-1.3% (3.1%)
Adjustment for OCBC Mortgage index;
BLR = 5.80% effective 11/03/10
MLR = 4.65% effective 11/03/10
Those who got MLR-1.30% gratz =p
3 years lock-in + 2 % lock-in penalty. best product i come across so far within the bank.
QUOTE
mind my stupidness..
lets say earlier i secure a package that said BLR(5.55) - 2.1%
as of that day BNM announce new OPR and BLR are affected
so I assume it would be BLR(5.80) - 2.1%
So, is the 2.1% fixed? until i decided for re-do the package again after lock period?
first let me explain how the rate works;
Your (variable) interest rate are commonly as such: (BLR/MLR/KLIBOR/FDR) - (insert figure here)%
the 1st part (BLR/MLR/KLIBOR/FDR) is what i call an
Index, a reference for rates. the 2nd part (insert figure here) is known as the
Spread.
Indexes fluctuate from time to time, usually under the influences of OPR and other cost factor. We often heard of people claim that BLR is determined by Bank Negara, which is not true. Bank Negara only determines OPR. BLR and other indexes are actually determined by the bank itself, affected by OPR. As you might have notice, the BLR varies from bank to bank.
Spread moves according to trends. It could be -2.40% for a couple of months, then raise to -1.00% and down again. Since indexes cant be controlled, the only way you can assure having a lower interest than others, would be locking the lowest spread possible at that given time. Regardless how the indexes moves,
Spread will not move unless a loan is defaulted, restructured, or when other terms on your letter applied (ie multi-tier rates).
Example on how the above works;
1/1/10 BLR = 5.55%
Effective Rate = BLR-2.00% (equals to 3.55% per annum)
11/3/10 BLR = 5.80%
Effective Rate = BLR-2.00% (equals to 3.85% per annum)
so there you have it.
This post has been edited by merce: Mar 12 2010, 01:41 PM 
Mar 12 2010, 01:02 PM
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