i myself are not banker , so i concern only the final amount i pay ,

this UOB bank agent he do calculation for me , upon a RM500k loan amount . and monthly will be around RM2320/month for now .
so after BR implement , it could be around RM2460/month

for those who sign SnP before BR implement , they'll still follow BLR while not BR .

so for new buyer on 2015 , you're ready to xxx up now . sigh , GST + BR

Noted, thanks for sharing. That is quite significant. So the effective interest rates have gone up for that particular bank.

I will post whatever i have whenever I have somehting.

Yes, effective 2/1/2015, Base Rate will replace Base Lending Rate for all new consumer loan. Those existing BLR-based loan will remain as it is. However, those BLR-based credit facilities which are revolving in nature shall be priced using BR when it comes to next renewal date.

It's not so correct to say that upon implementation of BR, the loan monthly instalment will increase compared to the same loan but being priced using BLR.

The pricing mechanism will be BR + spread whereby the component of the spread comprises the liquidity risk premium, credit risk premium, operating cost and profit margin. It's determined by how cost efficient is the bank's operations, how costly is its funding and how much the bank wants to profit from the loan, among others.

This post has been edited by Jasoncat: Dec 30 2014, 10:17 PM

It will ended up being the same. Might be different by 0.5- 1%.

Things to look got Effective profit rate.


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Heard Going fwd, no more BLR, all loans rate subject to individual bank's base rate. What's the difference and impact?




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maybank will lost a lot of money compare to now.

As some of us predicted, the effective rate is similar to what we are getting now.

Asgaard, what is the source for all these numbers ya? BNM?

edit: how to summon?

This post has been edited by wild_card_my: Dec 31 2014, 10:35 AM

You dont know that. Do you know what their effective rates they are offering?

Also, the BR is the average borrowing cost for the banks... if anything, isn't Maybank's borrowing cost very low? Which is good for them.

If Maybank BR is 3.20%, is that mean their rate will be 3.20% + 1% = 4.2% ? ...

Wait, have they announced that their rates will be BR + 1%? where did you get this? Their spread should be independent from other banks, just like how it is now.

This post has been edited by wild_card_my: Dec 31 2014, 10:13 AM

wild_card_my summoning no jutsu!



But even if BR+Spread% is the same as BLR-x%, isn't that BR changes more frequently / often than BLR? Correct me if I understood it wrongly..

This post has been edited by polarzbearz: Dec 31 2014, 10:22 AM

1% just the my assumption ... but the concept is like that right ? BR + %, the % is base on the bank n individual right ?

Thanks for the tip

They say that the BR can change every 3 months.

Overnight-policy-rate (OPR) is set by the BNM, which is the interest rates charged by the BNM for the loans that they extend to the commercial banks. In turn, the banks would loan out the money to the public in the form of mortgage/pl/hl/asbloan/etc. based on the BLR. As such, when OPR changes, BLR changes too. But BLR has the "advantage(??)" of relying on a single metric which is the OPR as the basis to set its own interest rates. And since OPR doesn't change that ofter, BLR stays the same way too.

BR on the other hand, is the average borrowing cost for the banks, and these are based on a matrix of loans available to the banks. Different banks would have different abilities/capacity to borrow, as well as interest rates charged to them. As such, chances are the BR will be more... what's the word... variable (?)... have higher entropy (??) than BLR since BR is based on the average borrowing costs which changes on a daily basis for the bank. Remember, banks borrow from each other too, and from their depositors too, and these things have costs associated to them in the form of payable interests.

As such, BR is similar to KLIBOR but not exactly the same. I expect the BR would change (up/down) every quarter as they are allowed to.

This post has been edited by wild_card_my: Dec 31 2014, 10:38 AM

Yes, as such, maybank may have lower BR, but their effective interest rates may be similar to other banks anyway due to the differences of each spread given to the client

To be honest, I dont know myself what it is going to be, but I expect nothing will change much except the old loans would be based on the BLR, while the newer ones will be based on BR. EIR would be similar

This post has been edited by wild_card_my: Dec 31 2014, 10:42 AM

You 're right, in the end, BLR n BR just the same, not sure why BNM says it's more transparent, easier to compare between bank to bank.

Anyone can advise me if BLR + 2.45% better or going for BR ?

BLR + 2.45% is horrible...

Go for BR.

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Sorry, it should be BLR - 2.45%