Not much different between BLR (Base Lending Rate) which are using right now compared to BR (Base Rate) which going to implement soon. For BLR, the spread by the bank can be either + or - ; For BR, the spread will be only +. BR is implement to provide transparency (to consumer) of costs & profit imposing by the bank with the spread (+) they offered as previously the spread (+ or -) is quite confusing to consumer which do not have financial knowledge.

Despite BLR going to be replaced by BR. The effective rate for BLR & BR will be the same.

Assume BR @ 3.6% & BLR remained 6.85%.

Scenario 1:
BLR 6.85% - Spread 2.4% = Effective Rate 4.45%
BR 3.6% + Spread 0.85% = Effective Rate 4.45%

Scenario 2:
BLR 6.85% + Spread 0% = Effective Rate 6.85%
BR 3.6% + Spread 3.25% = Effective Rate 6.85%

Existing Loan with BLR will be remain based on BLR. Only new loan will start using BR. I dun think bank will set the effective rate differently for both BLR & BR. Else, all existing customer (using BLR) will refinance within the bank or to others bank. Just my opinion.

OPR is rumoured to increased 25 points Jna 2015

so BNM or bank will maintain 2 systems for existing and new customer?
Say,When OPR increase 25 points
BLR and BR will increase to the same?
E.G, BLR = From 6.8% to 7.05%?
      BR = From 3.8% to 4.05% ?

kinda confuse how they manage..

P/S: All based on assumptions...

is BR and FD same ? or this there any different?
My previous loan is FD+

Seem the calculation is same..

BR=/FD. BR is used by bank to price the loan. FD rate is how much the bank is willing to give you as depositor for the money you "lend" to them to lend out to borrowers.

May I know which bank offer you loan with loan interest of FD rate + spread?

previously Eon had FD+ but no more. yours from which bank?

concept wise same but slightly diff spread because FD/ BR rates not same

Rumor that RPGT gonna be abolished Jan 2015 and LTV 100% allowed for 4th home and above starting April 2015 lol

i dont think that this would happen..

Because the intention of the government is to curb property speculation..

quick question:
why i saw so many forumers keep spreading info that people will desperately sell off their asset next year? anything to do with inflation or this BLR/BR?

Most likely the GST. As for the changes from BLR to BR, no one really knows the rate yet, most likely it will be similar to what we are getting now anyway.

does it nothing to do with inflation or economy coming down?

Well.. when GST in implemented, surely there will be inflation!

However, the economy going down or not, I cannot speculate. It may seem like the case and people would like to hedge their investments by buying gold and other precious metals, or bond unit trusts funds. When the rental market is down, you may find it difficult to hold onto your properties too. So they may think it would be better to let it go and wait until the storm passes.

why would this can happen?
isn't one of way for living?
its not like the tenant can move or buy their own house in a short time rite?

Just met UOB agent , and been inform 2/1/2014 all bank will change BLR rate -> BR rate
and he do counted already .
for a property RM500k loan equally you need to bear more RM140++ if BLR -> BR .

so , i would say xxxx up already now