they are doing this to curb the rise of total household debt. This is a signal from bank negara that our debt level is already at a very dangerous level. Although 0.25% has no effect on most people, but 1% increase would probably
leave some people pissing in their pants due to over committing in property.

if really mere 1% will have the same effect you mention above and further based on high household debt proven by gov that is 86.8% and the fact that only less than 7% are earning 7k and 10k above respectively, while the majority are middle class and low salary earners according to EPF and PEMANDU, that means these group of middle class and low are the ones taking heavy loans, the 86.8% household debt are also based on them as well.. with only 1% to see these effect coming, it is more certain to say many middle class out there are stretching to the max/ nearly stretching to the max... just by mere 1% only..

Believe most flipping properties have dibs and vp in 2015 or after, interest rate rise have ZERO impact until vp. These flippers still can wish for another round of qe.

This post has been edited by icemanfx: Jul 12 2014, 08:45 AM

mere 1% increase in BLR translate to an almost 13% increase in my monthly payment, assuming loan tenure not stretched out. Of course this is dependent on your remaining loan tenure left. The longer your remaining loan tenure is, the higher the percentage.

Welcome to Malaysia

Extended loan tenure is more vulnerable to interest rate rise. Those claiming extend loan tenure to minimize monthly repayment is either blind or ignorance of further rate rise.

This post has been edited by icemanfx: Jul 12 2014, 08:51 AM

Haha, who will believe U're so hardup....eat roti kosong and yet got time and money (need to pay internet bills to come here) to chit-chat here ?

Household debt 86.8% = Household DSR 86.8% ??

RM500 for GRO...walow.....what "under-cover " services these GROs provide ? These GROs must be filthy-rich then to "earn" so much ! Imagine the RM500 split 50/50 with the company... RM250 just from 1 group, 1 nite "service" say 5 groups will mean "earn" RM1,250 x 30 days = RM37,500 per mth. No wonder so many flippers around... too much cash dunno what to do with them.

This post has been edited by topearn: Jul 12 2014, 09:34 AM

no idea of i household DSR.. i only heard DSR before

but hosehold debt= 86.8% , means once salary nett out say 3k, 86.8% of the said salary already used to pay commitments such as car loans, credit cards, personal loans, construction loans, housing loans and etc. and out of the 86.8% the largest portion goes to housing loans(aka flipped properties for home owners, and invested properties for flippers or investors), in this case the housing loans itself could 70%. how to survive with remaining

100%-86.8%= 13.2% for the whole month? food? petrol other miscellaneous? car repairs? GST? increased BLR of merely RM200 monthly for 500k loan? hehe

surely not enought for the month, how? then delay and non prompt payment, use credit cards cover last months debt, dun pay all commitments till very last minute, service housing loans first...

This post has been edited by bearbearwong: Jul 12 2014, 10:15 AM

Still can survive. Have to rent the rooms out lo.

that is not what that means. Household debt is 86.8% of GDP. I stress that again, GDP.

GDP is not DSR. Remember people are taking loan for amount higher than annual salary, that is what contributes to this high household debt in term of GDP. What more important is the DSR, and DSR is not equal to household debt.

Very good calculation.
What is own planning since u know tis?
Still wait n c plus dun act anything ? Or u got back up plan to solve the problem ? Mind to share?

This post has been edited by Rabel: Jul 12 2014, 10:43 AM

So cham ah??? Said already....your JH feng sui not good. Owner cant even afford to eat roti kosong.

U make me feel very proud with myself because I can fall under 7% of top earner in Malaysia, although me and my wife still under low level employment in our company. Moving up the corporate ladder can cover a lot of additional interest.

16th July Public Bank & Public Islamic Bank start increase.

but will they offer better rate than -2.4% ?

No wonder you are so bear bear. The 86.8% household debts to GDP should not inteprept this way la. Is 86%of your monthly income go to debt repayment?

Aiyoyo bearbear, you better polish your economics. There is 1 economic student here who can explain what 86% means (I hope he is knowledgeable enough)

No wonder you still don't buy property. You mislead yourself with half cooked knowledge