Nov 24 2014, 06:45 PM
QUOTE(practcmksperfct1 @ Nov 24 2014, 06:34 PM)
Hi Sifus, I find this part of the RHB full-flexi home loan confusing. What does it mean? It sounds very important, like something that I shouldn't ignore.
Anyone can help explain the below?
8) In the event the difference between OPR (Overnight Policy Rate) and BLR (Base Lending Rate) reduces to below 3.5% during the loan tenure, the Bank reserves the right to increase the prevailing interest rate spread to maintain the margin between OPR and BLR at 3.5%. However, should the difference between OPR and BLR increases back to 3.5% and above, the prevailing interest rate will take effect.
The current BLR is 6.85%, and RHB is offering me -2.4%. So the loan interest is 4.45%.
But what is OPR??
I don't see this in the CIMB full-flexi loan at all.
Appreciate your guidance. Thank you!
Link on what is OPR http://en.wikipedia.org/wiki/Overnight_policy_rateAnyone can help explain the below?
8) In the event the difference between OPR (Overnight Policy Rate) and BLR (Base Lending Rate) reduces to below 3.5% during the loan tenure, the Bank reserves the right to increase the prevailing interest rate spread to maintain the margin between OPR and BLR at 3.5%. However, should the difference between OPR and BLR increases back to 3.5% and above, the prevailing interest rate will take effect.
The current BLR is 6.85%, and RHB is offering me -2.4%. So the loan interest is 4.45%.
But what is OPR??
I don't see this in the CIMB full-flexi loan at all.
Appreciate your guidance. Thank you!
Current OPR is 3.25%
Current BLR = 6.85%
Spread = 3.60%
Say if OPR goes up to 4.0% but other Banks do not increase the BLR, so the spread is now reduced to 2.85%
So, your rate WILL NOT be BLR of 6.85% less 2.40%, but rather OPR of 4.0% + 3.50% less 2.40%
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