I am still confused. Not that I would like to pay more, but just need some clarification.

When I signed up for the loan, the BLR is 5.55%. Now, that the bank has increased it to 5.80%, won't I be seeing a higher monthly loan repayment amount (cos currently I am still seeing the rate at 5.55%)? How often does the bank adjust the BLR for the housing loan (if there is change)? Is it monthly/ quarterly/ half yearly/ yearly?

then it will be based on the changes of the BLR all the time ?
in such case.. like there is no diff withe the daily interest calculation..

i guess there will be a certain time frame for them to re-revise the BLR rate

BLR varies from time to time. There is no such thing as a guaranteed BLR.

It is the monthly interest rate which is agreed by the borrower(s) and the bank.

ie.
Case 1: First 3 years 5.55%, consecutive years BLR - 1.80%
Case 2: First 3 years BLR - 0.25, consecutive years BLR - 1.80%

Assuming BLR = 5.80%.

In Case 1, it is fixed for the first three years that the monthly interest rate will be 5.55%. It doesn't vary even if the BLR goes up to 7.00% or down to 3.00%.

In Case 2, if on the second year the BLR shoots to 7.00%, then the effective monthly interest rate will be 7.00 - 0.25 = 6.75%. Similarly if within the same period, the BLR changes to 3.00% then you'd be charged an interest rate of 2.75%.

Was wondering about the BLR myself.  When I signed the offer letter, the rate was 5.55%
I thought won't be affected by new rate (5.80%) but the officer said, whatever regular/normal rate is published is the one effective.

BLR varies from time to time. There is no such thing as a guaranteed BLR.

It is the monthly interest rate which is agreed by the borrower(s) and the bank.

ie.
Case 1: First 3 years 5.55%, consecutive years BLR - 1.80%
Case 2: First 3 years BLR - 0.25, consecutive years BLR - 1.80%

Assuming BLR = 5.80%.

In Case 1, it is fixed for the first three years that the monthly interest rate will be 5.55%. It doesn't vary even if the BLR goes up to 7.00% or down to 3.00%.

In Case 2, if on the second year the BLR shoots to 7.00%, then the effective monthly interest rate will be 7.00 - 0.25 = 6.75%. Similarly if within the same period, the BLR changes to 3.00% then you'd be charged an interest rate of 2.75%.

Thanks for the helpful info, Tohsan.  They only gave me BLR -1%

If First 3 years BLR- 0.25%, then within the 1st year (and throughout the second year), the BLR changed to 7% from 6.5%, does that mean that the rate for the first year continues to be 6.25% and will only change to 6.75% in the second year?

If First 3 years BLR- 0.25%, then within the 1st year (and throughout the second year), the BLR changed to 7% from 6.5%, does that mean that the rate for the first year continues to be 6.25% and will only change to 6.75% in the second year?

Your English is confusing. So....
Assuming BLR 7.00%, your loan starts on January 2010 and BLR drops to 6.50% on May 2010 then

January 2010 to 30th April 2010: 7.00 - 0.25 = 6.75%
May 2010 onwards: 6.50 - 0.25 = 6.25%

---------------
Assuming BLR 7.00%, your loan starts on January 2010 and BLR drops to 6.50% on May 2011 then

January 2010 to 30th April 2011: 7.00 - 0.25 = 6.75%
May 2011 onwards: 6.50 - 0.25 = 6.25%

Your English is confusing. So....
Assuming BLR 7.00%, your loan starts on January 2010 and BLR drops to 6.50% on May 2010 then

January 2010 to 30th April 2010: 7.00 - 0.25 = 6.75%
May 2010 onwards: 6.50 - 0.25 = 6.25%

---------------
Assuming BLR 7.00%, your loan starts on January 2010 and BLR drops to 6.50% on May 2011 then

January 2010 to 30th April 2011: 7.00 - 0.25 = 6.75%
May 2011 onwards: 6.50 - 0.25 = 6.25%

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.