I heard rumors of BLR is going to increase. Currently the amount is 6.6%. I do rough estimation if there are 1.0% increase. you keep on paying the current rate. your loan tenure will extend to another 2 years.

for example there are a time year back BLR 5.5%. now is 6.6%. what will happen if this keep on increasing. now with rumors of GST going wild. the rapid hike in cost of living. think of it if BLR increase further. what is the implication.

This post has been edited by toh2020: Jan 16 2014, 06:10 PM

i heard it from many ppl discussing at kopitiam. even also market places too. not forgetting housing developers sales at supermarkets.

well i searched through discussions. the happening does not corelate to current action by our beloved ruling govt. that is with implementation of GST. not forgetting rapid cost of living we are experiences now. this taken into account recent fuel hike.

you are right on track man. ballooning household debts could lead BNM raising benchmark interest rates.

we know well our govt always ask supplementary budget above allocation. which a bad sign for our economics.

to my experience when BLR goes up. it hardly goes down.



This post has been edited by toh2020: Jan 16 2014, 06:01 PM

do you have data from 1980 - 1988. i heard also many said there are mid year crisis in the 80's decade. many ppl are out of job and recession follows... thanks.

the only worry everyone discussing is 2014 - 2015. there will be a revision by BNM on current BLR of 6.6%. the OPR also be revised.

thanks man, the figure says it all mid 80's decade crisis to be exact.

we wishes BNM not to raise the BLR nor delaying it.

when times are desperate and there are shortage in cashflow. BLR increase is beneficial. in a way they banks increase their cash reserve for loans. it encourages saving when ppl knows bank are offering good FD at 7% - 10% per annum. in order for banks to repay their depositors with sustainable profits. they needed to charge higher lending rate on loans more than FD rates.

2014 is bad year most ppl will be tightening their belts due to many uncertainties. well drastic measures comes to drastic action. eventually BNM will increase the BLR due to preassure from many quarters.

so it boils down to how the ruling govt manage the nation financial affairs. with the ever increase in cost and the drastic need to supplement budget. this is danger for house owner, businesses and investors.

the thing is when the owner cannot paid up. they financial sectors involved have rights to forclose their properties/commercial premises and sub-sale with auction. ppl will get laid off from thier jobs. multinational companies will move away from our beloved malaysia. more bankcruptcy that comes along with NPL that inturn affect the banking sectors ans socio economics of the nation.

it is also an acid test for najib's administration. hence we should look forward what's next in 2014. the discussion should be base on current real time issue how it will eventually affect us all.

of course lar we got so many foreigner working take our monies back home. sure devaluate one. to them they just go back homeland enjoy.

for the locals will have to bear the impact.

your mthly payment will never change. this is new rule from BNM. but with higher OPR or daily interest. your principle reduction will be much lesser. hence your loan tenure will be extended to so many years to come...

for home loan, every ringgit outstanding is calculated in daily interest.

if u want to pay higher mthly installment. you need to go to your bank headoffice and apply.

This post has been edited by toh2020: Jan 18 2014, 10:58 AM

the 35 max is safeguarding for banks vs borrower age/health factor where they can work and earn.. they banks are well aware tenure will be prolonged. taken account BLR increase and BLR decrease will be reflected in your yearly statement. so if BLR keeps going high. the sad reality we have to pay longer before reaching financial freedom.

i did talk to elderly ppl on this. many who opt 30 year loan ended up to nearly 40 year payment. the advice if u got some money like bonuses. might as well do principle reduction payment if u are under flexi-loan.

This post has been edited by toh2020: Jan 18 2014, 11:59 AM

it will be accumulated and charged on daily OPR interest. henceby how your tenure increases.

we can only keep our finger crossed. this year consider an acid test for najibs administration. there are many news going on our nation overspend and bla bla bla. but in reality things are going up and cost of living goes sky rocket high. the past will revisits again sooner.

This post has been edited by toh2020: Jan 18 2014, 12:04 PM

for my case my mthly installment had not changed. there is this minor word clause by BNM. cause my tenure is 15 years. i do rough estimation if 1% BLR increase it will add 2 year to my tenure. if it stays the same till end of tenure.

just watch out for yearly accessment charged to your loan acc. it will also increase your overall interest.

so when i got my yearly bonus. i just dump rm2k yearly as principle reduction.

forgot to add when i secure my loan BLR that time was 5.55%

This post has been edited by toh2020: Jan 18 2014, 01:07 PM

civil unrest can cause interest rates to lower har.. no wonder the trend these days. people are keen to do mass gathering "turn padang"...

read for yourself...

http://loanstreet.com.my/learning-centre/b...crease-decrease

rumours or ouch ouch is reality to come by this year.... it's best to share so everyone will be on guard n make neccessary plannings or preparations.
http://www.freemalaysiatoday.com/category/...lr-by-end-2014/

Zeti: New framework for BLR by end 2014
The cost of funds for banks is based on the overnight policy rates (OPR) that BNM monitors. The OPR, however is likely to rise next year from the current 3% to 3.5% in a bid to contain inflationary pressure on Malaysian economy....

if opr 3% ~ 6.6% blr. then opr 3.5% =???% blr

This post has been edited by toh2020: Jan 19 2014, 11:07 AM

candidate age factor and health records does play a part. in decision making for approval. these are risk factor. the banks are very careful in case to case basis. in all cases conditions set are tailored to best interest of the banks.

This post has been edited by toh2020: Jan 19 2014, 04:49 PM

make it simple..

the rich gets richer (anticipating property bubble to burst. the faster the better. buy forclosed properties at undervalue prices. sell them of good reasonable prices for handsome profit when market regains momentum)

the poor gets poorer (when will we ever get a home sweet home. price hike is inversely proportional to income. so the goals are beyond reach)

the mid incomer caught in dillemma between 2.

tot our current beloved ruling govt already had Government Transformation Programme (GTP), which includes monitoring the performance of ministries and six national key result areas (NKRAs) through Key Performance Indicators (KPIs).

by then things should be better or otherwise?

we know those under GTP oversee the overall govt KPI are highly overpaid compared to ministers.

p/s: the banking sector predicted 2014 OPR will go up from current 3% to 3.5%. i presume BLR to raise above 7.7%.

seriously to be honest if you are to do the same job for rest of your life. u be paid the same amount or lesser even for years to come. basically it comes down to demand and supply. if the company willing to keep u. that's fine, consider yourself lucky. when they opt for automation u are consider redundant and out of the job. basically it comes down to one's own mindset.

when you see yourself doing above more than you are paid, keep learning and improving. the company management does not give a damn about been appreciative to your efford. instead of finding justification to brainwash you into thinking this is what u deserved. henceby taking all your credits to promote themselves. to keep their jobs safe. dumping their workload on you taking things easy themselves. it's your own wisdom and decision either to move out for better prospect. or perhaps stay down being obedient under suppression.

this is anticipated by major banker. eitherway it's BNM decision give way to them or the rakyat.

This post has been edited by toh2020: Jan 21 2014, 12:21 AM

i don't think it come down. if you average up the figures. the BLR stand at 2.995% which still the same 3.0% currently. this why BLR still stood at 6.6%.

any increase of decrease of BLR are dictated by overall OPR movement. the profit and lost are also taken to consideration. so the financial institution can keep afloat.