should not me be true, i recall BLR is tied to Bank Negara OPR rate, which is reviewed every 2 months.

http://www.bnm.gov.my/?ch=mone&pg=mone_opr_stmt&lang=en

as u can see in 2010 OPR changed every 2 months, so BLR would have changed every 2 months then.

http://www.blr.my/blr-history.htm

This post has been edited by zenquix: Mar 4 2015, 03:59 PM

As mentioned, the BR is to be reviewed on periodic basis whereby frequency of such review is to be documented on the bank's policy. No such thing as BR is to be reviewed once every 3 months and BLR once every 6 months. But one thing you have correctly said is review doesn't mean rate change.

Read from the valid source i.e. the BNM policy documents and not those uunconfirmed source.

At this moment I haven't heard any changes in spread yet.

BR won't changes that often as like BLR but the spread from BR there's always a space for bank to adjust on this but so far there's no news of changing the spread interest yet.

Actually if they keep on changing the effective rate, be it BR-*.** or BLR-*.** on short duration of time, they will have problem also

Because of current economy condition they are not adjusting.

Yeah, based on the current economic backdrop don't see any imminent sign of rate adjustment.

Btw, just notice an incorrect statement to which you responded: BR won't changes that often as like BLR. If fact, based on the BR framework, whenever the bank change its BR, it has to change its BLR by the same magnitude. So in short, BLR will follow suit when BR change - BLR will change as often as BR.

Yup, you are right on this. They can have meeting every now and then to decide. Just sit back and see.

Spread for existing loans has to be maintained for whole tenure but the banks may fine tune the spread for prospect clients.

Yes, the spread is fixed after it's being offered to the borrower.
BR will be reviewed periodically, some banks every 3months.

Hi All,
I would like to check about method to get additional cash by refinancing my home.
Current outstanding loan RM 190k. Current House price is 500k-550k range.
Existing BLR rate is BLR-2 %.
If i get a new 250k refinancing loan:
1) would i be able to get the additional cash of 50k immediately.
2) Does the homeloan now need to pay lawyer fees and all.
3) How long will the process take.
Thanks

if you want to cash out 50k the refinancing loan amount should be 190K + 50K = 240K nearest to this figure 90% will be 243k which is Loan amount 270k

yes home loan need loan legal fees.

for refinance if no problem with the profile should be done within 7 working days.

Hi..thank you for the information

1) You wont get the cash immediately, still need processing time.

2) Yes, the costs incurred will be legal fee for loan documentation, stamp duty, lock-in period penalty (if applicable)

3) If you refinance to another bank, you submit your application to them, wait for the approval, and sign letter offer, which might already take you two weeks. Then lawyer prepare loan agreement, you sign it, send for execution, maybe another 2-3 weeks. Then request redemption statement from your current bank, advice new bank to pay the outstanding loan amount to your existing bank, then discharge the property from the existing bank and charge to new bank, then only the new bank will release the 50k to you. Estimate 2-3 months from signing of loan agreement or 3-4 months from the day u apply for refinance.

Another faster way will be go to your current bank, tell them you want 50k cash, top up from your existing loan.


Further clarification as i think there's confusion here.

Cash out 50k + outstanding 190K = 240k.
240k is the loan amount. Margin is 48% of the market value (assuming 500k)

7 days i believe u meant the approval of the refinance application, not the entire refinance process.

This post has been edited by Fat3Twister: Mar 6 2015, 12:09 PM

HSBC is having a zero moving cost promotion. Maybe u can try. The indicative rate is 4.75% (~ BLR - 2.2 in old days). I am trying to appeal since it is worse than my current rate. But it is already better than your current 1. Maybe u can try.

https://www.apps.asiapacific.hsbc.com/1/2/m...mktcode=0193-OT

Hi Twister,
thanks for your info, the last point might work for me but subject to the bank.
Best Regards

Hi all. Checked out EF package recently... bankers tell me no diff if BR low/ high. Just look at the end rate.. betoi ke?

In brief, yes look at the effective lending rate ie the all in rate (the BR+spread).

Macquarie: More ringgit weakness, OPR cut imminent

Macquarie Research expects the ringgit to weaken further and for the central bank to cut its overnight policy rate (OPR) this year .

“Although Malaysia’s terms of trade have not deteriorated, BNM appears comfortable with further ringgit depreciation.

“We expect the ringgit to depreciate toward RM3.95 per US dollar by September 2015—which should contribute toward a strong acceleration in exports, allowing a mild rebound for the ringgit to RM3.82 per US dollar by end-2015,” the research house said in an economics note yesterday.

It noted that while Malaysia’s terms of trade haven’t deteriorated, their perceived deterioration is used to justify further depreciation of the ringgit.

“During last week’s briefing on the Bank Negara (BNM) annual report, BNM’s deputy governor emphasised the “terms of trade shock” that Malaysia has experienced in the past half year – which, in his view, justified the depreciation of the ringgit, primarily as a means to temper the decline in farm incomes from the decline in export-commodity prices.

“While we recognise the social benefits of offsetting the latter, we note that Malaysia’s terms of trade have not actually deteriorated significantly.

“Not only are Malaysia’s exports and imports dominated by non-commodity manufactures (led by electronics), but even the oil terms of trade have not deteriorated significantly,” Macquarie highlighted in its note.

The research house said it expects real gross domestic product (GDP) to decelerate to 4.5% growth this year as private consumption is reined-in to 5.4% year-on-year growth (the slowest in 6 years), in response to the imposition of the goods and services tax in April.

It added that with inflation averaging a tame 2.3% in 2015, it expects BNM to cut the OPR by 25 basis points at its May 2015 meeting and to keep it at that level throughout 2016.

“Consequently, we expect an investment-and export-led rebound to 6.1% real GDP growth in 2016,” the research house said.

The research house recommended staying underweight on Malaysia into Q2 2015, as the 1Malaysia Development Bhd saga continues to weigh down the ringgit.

“In the near-term, ringgit depreciation plays will provide the only refuge, apart from defensives such as our Asia Marquee ideas Tenaga and Telekom Malaysia. Weak-ringgit (tourism and export) plays we like include Westports, Genting and Top Glove.

“In 2H 2015, the improvement in free liquidity should enable the market to focus on the likely economic recovery in 2016. We would recommend rotating into cyclical plays like construction (Gamuda, IJM) and banks (Alliance Financial Group, RHB, Hong Leong Bank) by the middle of 2015,” the research house said.

Hi all,

I got questions on loan.

I just got a RM 920K unit in Armanee Terrace 1. Intend to take a RM 500K loan, with EPF. I have 3 properties already.

Any loan officer pls PM me.

What is the best loan package with lowest ELR?