Not yet.. can u explain regarding this..

I also don't know what to choose

The spread will have bigger impact on the borrowers rather than the Base Rate in the long term. Hence it is advisable to choose the lower fixed spread to minimize interest cost during the loan tenure.

Does anyone know the formula for calculating monthly mortgage balance? I want to calculate how much my balance will be if I pay extra either at monthly and/or one time payment. I also want to be able to check how many years I can reduce if these extra payments.

This post has been edited by honkkydorry: Sep 5 2016, 11:49 AM

Hi All Experts,

May I get some opinion.
Currently comparing 2 banks with 2 obvious differences :

1. Bank A : Offer Rate at 4.35% with 1.35% BR + 3% SR
2. Bank B : Offer Rate at 4.35% with 3.65% BR + 0.7% SR

Anybody can give opinion which one is better than the other with some scenarios?

Need to give answer on which bank tomorrow.
Appreciate your help.

The spread will have bigger impact on the borrowers rather than the Base Rate in the long term. Hence it is advisable to choose the lower fixed spread to minimize interest cost during the loan tenure.

why so?? then who else wanna take those MBB with such a low BR but higher spread?

I don't see any basis of it... what's your rationale?

Can you give more details on this?

Overnight policy rate (OPR) raised 0.25% to 3.25% – the first increase since July 2014.
Will this have any impact on house prices or will this lead to more forceclosure due to higher loan payments ?

Generally housing loans are fixed rates or varies withe the BLR ?

variation rate follow the opr

Base on the current rate, it is better to take longer tenure or shorter?

I would say always longest tenure.

Mind to share how so the longest the better?
Eg:
1) I loan Rm 150k - 35 yr
I need to pay - RM 660/mth; after 35 yr, the house cost around RM 285k

2) I loan RM 150k - 20yrs
I need to pay - RM 900/mth; After 20 yr the house cost around RM 216k

I suggest longest tenure possible is because, housing loan is the biggest amount with lowest interest rate personal loan which an ordinary person could get.
With this loan, you can easily use your available fund to earn income which generate higher return than your loan interest.

i believe he said longer better bcoz if longer tenure it creates lower repayment instalment monthly
u can pay more or same at diff timing and if pay more can also shorten your instalment tenure eventually. mortgage loan is based on BR of balance amount which different from hire purchase car loan which is fixed interest determined in the beginning.
if shorter tenure, u have to commit with high instalment all times, unless u confirm the instalment wont be a burden when u meet short term financial crisis, then a shorter tenure will be better as u pay less total accumulated interest to bank.

This post has been edited by lysiew: May 9 2018, 06:24 PM

Bank Negara lowers OPR by 25bps to 3%
BANKING
Tuesday, 7 May 2019

3:00 PM MYT

KUALA LUMPUR: The Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) to 3% at its meeting on Tuesday.

It said the ceiling and floor rates of the corridor for the OPR are correspondingly reduced to 3.25% and 2.75% respectively.

It said the baseline projection is for the Malaysian economy to grow within the projected range of 4.3% - 4.8%.

“However, there are downside risks to growth from heightened uncertainties in the global and domestic environment, trade tensions and extended weakness in commodity-related sectors,” it said.

Bank Negara said while domestic monetary and financial conditions remain supportive of economic growth, there are some signs of tightening of financial conditions.

“The adjustment to the OPR is therefore intended to preserve the degree of monetary accommodativeness.

“This is consistent with the monetary policy stance of supporting a steady growth path amid price stability. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation,” it said.

On the global economy, it said it continues to expand moderately. While growth outcomes for several major economies were better than expected during the first quarter, underlying economic conditions continue to suggest moderation going forward.

Considerable downside risks to global growth remain, stemming from unresolved trade tensions and prolonged country-specific weaknesses in the major economies, further dampening global trade and investment activities.

Although the tightening in global financial conditions has eased somewhat, heightened policy uncertainties could lead to sharp financial market adjustments, further weighing on the overall outlook.

“For Malaysia, latest developments point towards moderate economic activity in the first quarter of 2019.

“Looking ahead, slowing global demand conditions and subdued growth of key trading partners will continue to weigh on the external sector,” it said.

Bank Negara said domestically, stable labour market conditions and capacity expansion in key sectors will continue to drive household and capital spending.

Headline inflation increased to 0.2% in March 2019 (February: -0.4%), due mainly to the less negative transport inflation at -3.0% (February: -6.8%).

Underlying inflation, as measured by core inflation remained stable at 1.6% in March 2019.

(Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the estimated direct impact of consumption tax policy changes.)

In the immediate term, inflation is expected to remain low mainly due to policy measures..

These include the price ceiling on domestic retail fuel prices until mid-2019 and the impact of the changes in consumption tax policy on headline inflation.

For 2019 as a whole, average headline inflation is expected to be broadly stable compared to 2018. The trajectory of headline inflation will continue to be dependent on global oil prices.

Underlying inflation is expected to remain stable, supported by the continued expansion in economic activity and in the absence of strong demand pressures.

The domestic financial markets have remained resilient, despite periods of volatility primarily due to global developments, it said.

Read more at https://www.thestar.com.my/business/busines...EvfziLyV6uoi.99

Will bank drop their rates ?

Will bank drop their rates ?