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!

WOW...it sounds risky to accept this term set by RHB then!
Historically, has the OPR-BLR difference ever gone below 3.5%? If it is very likely that this is going to happen, then this term is not going to work to my benefit.

I'm really attracted to RHB's offer because unlike CIMB, it has no setup fee and no monthly fee. That's a lot of money saved!

I've done a comparison between RHB and CIMB.
Based on the points below, which one would you recommend?

Pros & Cons of RHB Full-Flexi Home Loan

- No setup fee (CIMB requires RM200)
- No monthly fee (CIMB requires RM10 monthly)
- Current Account & Loan Account are separated (CIMB combines both into one simple account)
- Standing Instruction is needed to transfer monthly installments from Current Account to Loan Account
- To make prepayment, funds need to be transferred to Loan Account directly, can be done at the counter only (CIMB can pay via online banking)
- No need to notify bank on prepayment and withdrawal (same as CIMB)
- No charge for making prepayment, but it has to be in multiples of RM1000 (CIMB any amount is ok, which is better because even if I pumped in RM900, it would reduce my principal and interest too)
- No charge for making withdrawal, can be done via online banking/cheque/counter (same as CIMB)
- Has a potentially risky term of OPR-BLR difference thingy
- There's also another risky term that says: "You are to execute a statutory declaration that the property purchased/constructed/refinanced is for own occupation." (What if I want to rent it out? Risky term as well!)

Hope your knowledge & experience can help me and others out there make a good decision.