OCBC Bank Ups BLR To 5.80 Per Cent

KUALA LUMPUR, March 10 (Bernama) -- OCBC Bank (Malaysia) Bhd and its subsidiary, OCBC Al-Amin Bank Bhd, will increase their base lending rate (BLR) and base financing rate (BFR) to 5.80 per cent effective Thursday.

Their previous BLR and BFR were 5.55 per cent per annum.

The bank said the increase followed the upward revision of Bank Negara's Overnight Policy Rate (OPR) last Thursday.

The central bank raised the OPR by 25 basis points to 2.25 per cent from the current 2.0 per cent.

OCBC's mortgage lending rate, the alternative to BLR for home loans, will also be raised to 4.65 per cent per annum, said OCBC Bank in a statement today.

Customers will also enjoy increases in deposit rates to as high as 30 basis points for deposit placements of three to 11 months and over 12 months.

OCBC Bank Director and Chief Executive Officer Jeffrey Chew said the OPR upward revision clearly affirmed the growth momentum in the economy, a good sign for the banking industry and commerce, the bank added.

-- BERNAMA






So how much you guys are forking out extra?

I haven't even start paying my first monthly repayment and they start rising already....

same here!

leongal, why you haven't started your repayment? I started my repayment right after the 1st drawndown.

IIRC HSBC also. Have to check.

I duno why, it suppose to be auto deduction from my savings account, which did not happen, I think I should check with the bank tomorrow...thanks...

I think the auto deduction is not in place yet, do check with them immediately.

i think it will be increase again in 3rd Q,

Citibank rate is 5.8%. same with local bank first time.

Yes, confirmed. HSBC BLR increased to 5.8% effective 9th March.

Thanks for highlighting it, I have got it sorted out today......

Aih. I also haven't started paying but BLR increase, bloody hell.

me too....

not pay the installment yet..bcoz have something pending at land office...

BLR increased already..waaa....

me too here. march increase, april only pay 1st instalment.

But we shud feel lucky as we could get historic lowest interest package.

Ya.

Never in Malaysia history we could get BLR -1.8% or below.
My parents generation are mostly BLR + X% interest.

http://www.meshio.com/base-lending-rate/

From the site, lowesst BLR is Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad 10/03/2010 5.50

but i never heard of this bank before

is it still possible to get the 4.99% fix rate interest? really2 scared on the recent increase of BLR.........im thinking of getting fix rate by june this year...hope its still not to late to get the best rates......

i think we don't have to worry too much about the rise in the interest rate actually, it is a normalizing stage.....the BLR will move in tandem with the OPR, and OPR unlikely to go above 3.5%

Good rate but i think this bank only service Japanese companies or someone of Japan citizenship. I don't think this bank is open to public.

This post has been edited by Shazzac: Mar 11 2010, 03:09 PM

you are wrong. The Royal Bank of Scotland Berhad is the lowest 5.25%

low rate doesnt mean good package. looks for overall packages mar..

true...banks will play around to squeeze the consumers

count ur blessing people, u ARE enjoying the lowest rate ever in Mortgage history.

just for your information, Mortgage Loan rates average out on 6-7% pa in the past.

yes, i agree with this....

er... hahaha...
last updated 27/02/2009

how much is AIA or ING fixed rate now. Since the BLR raise.

Hehe..I got BLR-2.4%, so lucky.

ING Fixed Rate :
4.99% for Non-ZEC Package & 5.25% for ZEC package. It's still the lowest fixed rate in the market I think.
Anyone who's interested to know more details please drop a message to cheahyang_0@hotmail.com for inquiries. Thanks!

Public Bank Base Lending Rate as at 11/03/10
5.80% p.a

may i know which condo are u buyin?

mind to share when did u apply for the loan? and from wat bank?

r u sure ?
according to PBB banker,
the lowest rate is BLR - 2.0% for GRADE A customer.

i got -2.3% zec oct/2009

Congratz, you got a good rate jus as they were starting to pull back =)

i got blr - 2.4..but after 5 years..b4 that blr - 1.7 only

this is off topic, how do PBB banker define a GRADE A customer?

This post has been edited by Tohsan: Mar 12 2010, 09:19 AM

Hi Merce, since u r from OCBC, what's the MLR for OCBC now? did they move it up 25bps also? no news on their website also.

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?

Of course la!!! only the BLR will flunctuate. The -2.1% stays as it is.

As long as you don't refinance with a new loan agreement, it will stay that way till the loan period ends.

checked with OCBC yesterday, MLR remain the same 4.4%. so my interest remain MLR-1.3% (3.1%)

Congratulations on getting such a good rate.

Means you are even better off than those who got BLR-2.5% packages last year coz now their interest rate is 3.3% but yours is only 3.1%

Anyone else interested to find out more about OCBC Ideal Mortgage package (Based on MLR) as well as other competitive packages from other banks, please call/sms/email/pm me anytime and I'll personally assist you to get the most suitable package to meet your needs.

Regards,

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.




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

I always don't understand until you have given a very good explaination... thanks for sharing, now I only know

goooossshh... was realize the increase of BLR rate today morning when surfing alliancebank.... and go surf net.. realize the cheapest BLR is 5.75%... i also haven start my 1st installment for my recent bought house.... same case like other coz some doc still pending at Land office... >.< too bad...

AIA right now is offering 4.99 FIXED RATES. So it's the best time to get mortgage loan from AIA. ;D

By the way, how's AIA vs ING rates? I understand both also offer fixed rate loan.

ING offers 4.99% for non-ZEC package and 5.25% for ZEC package. If anyone interested to know more please drop a message to cheahyang_0@hotmail.com for inquiries. Thanks!

Hi LeeteNg and gavin_lim,

So both AIA and ING have comparative rates with each other?

My turn to add =)

Maybank:-

3 years FIXED at 3.75% thereafter BLR-1.8% or
5 years FIXED at 4.85% thereafter BLR-1.8%

These packages will be revised upwards soon due to recent increase of BLR.

Please contact me ASAP if you want to lock-in the low rates now.

If you want FIXED rate for much much longer than 5 years, then you should consult the 2 insurance guys mentioned above =)

Regards,

Would go for the Maybank package as my view is financing rates tends to be more affordable over time, so no point comitting for too long

here we go again

BNM raises OPR by 25bps to 2.5%
http://thestar.com.my/news/story.asp?file=...0142&sec=nation

.... from 0.25 to 2.5 % ?
how serious the effect would be huh ?

BLR + 0.25% and FD + ~0.25% too...

not necessary, but most probably

Fixed rate is for borrower who want to lock in the rates for long term perspective. No one can predict the rates will go how high in the future.

For short term borrowers like investor, it is better to choose from the bank with short or no lock in period.

increase again? you gotta be kidding me, not yet start paying for loan increase again. bloody crap.

So, with the increase of BLR, will the price of property come down?

A unique decision by Central Bank. Being 1st country in Asia to rose interest rate which make it differentiate with the other countries. It shows confident of the current gov't on economic recovery and able to stand alone with it decision and withstanding the fact that Europe is going into trouble

unlikely to come down since cost of construction material are going up, disregarding the increase in blr.

exactly... i was "arguing" with my fren..... it is a strange movement. but GPD up by 10.1% ...hmmm

interest rate rises, property price rise. just look at how much developers price the studios.

hmm.. this sounds logic too .. but we as buyer.. will be burdened lo T.T

As expected, banks are announcing BLR revising to 6.05% effective monday.
http://starproperty.my/PropertyScene/PropertyNews/4601/0/0

but i guess its good news for those with many many money in FD

its the exact opposite

Mind to elaborate? Thank you very much

Yalor, i would think so too, isn't it? Normally FD rate is about half of BLR rate. So if BLR goes up, doesn't the FD rate move in tandem as well? Giving depositors a higher return. (Although never enough to beat inflation ). In theory at least, that should be better for depositors?

The answer lies in the following :

1. Find out the reason why BNM raises OPR
2. Look at performance of KLCI and property markets in the past 12 months VS FD.

Personally, I felt that ppl with huge proportion of their net worth in FDs has always and will always be the biggest losers.

Contrary to most people belief, the decision by MY government to increase the interest rate mean the economy is on recovery path. Actually, interest rate decreased -> economy bad; interest rate increased -> economy good.

Do not worry that BLR will be increased to a very high level. It won't be.
If BNM keep on increase interest rate, it will attract a lot of foreign hot money to MY. And since FED won't increase its interest rate for a long time, I do not think BNM has much room to increase interest rate.

The keyword here is "normalizing".

Because of wasted opportunities to strike when they could, and their bullets grow rusty?

I thought I was the only one with the same thought

---

Added on May 17, 2010, 5:34 pmAlmost there. Compare all diff asset clases VS FD, u'll get the picture

This post has been edited by Pai: May 17 2010, 05:34 PM

latest news....6.05 ^^

latest meh ? ald confirmed on that since last week x.x

to him, that is the latest news. ppl just simply posting and increase the post count and never read the previous postings

i joined in since 04

if i wan to increase my count post, now edi few k

noob

This post has been edited by maru: May 18 2010, 11:26 AM

BNM already announce it will at least increase until 1% since March 2010. means from 5.55% - 6.55%(EXPECTED BLR) in the year end of 2010. the next committee meeting will be on JULY 2010. it will keep increasing. Based on the average 20 years BLR in AIA report is 8.77% and highest is in 1998 12.27%.

Eg.
Loan Principal RM 100,000
Tenure 30years
BLR 5.55%
Repayment RM 568
increase a 0.25%=5.80%=you have to pay another RM 15,904(interest)
increase a 0.50%=6.05%=you goin to pay another RM 36,920(interest)
increase a 0.75%=6.30%=you goin to pay another RM 67,592(interest)
increase a 1.00%=6.55%=you goin to pay another RM 118,144(interest)

Aih, just saw the increase of MLR at ocbc's website. I wonder if there is gonna be another increase in these couple of months?

wonder how will those people who have over committed in their housing loan fair

i know people who claimed himself "i buy property more than you buy shoes", hopefully he he is not in a bad condition now, may god bless him....

lol may I know who that person is?

hahaha.. unless he pay cash. if he haven settle the loan, the property is still own by lender. haha.