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> Mortgage Loan Package Inquiries, (Strictly NO Promotion Allowed)

hontoni1983
post Dec 15 2017, 07:06 AM

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QUOTE(lifebalance @ Dec 14 2017, 10:55 PM)
Spread is fixed upon loan being offered to you.

With regards to BLR, banks no longer run on BLR already, it's on Base Rate right now.

Previously, BLR changed according to the Overnight Policy Rate (OPR), which is determined by Bank Negara Malaysia from time to time.

The BR is dependent on banks’ benchmark cost of funds and liquidity. Banks can also review it anytime if there are no changes in the OPR.

With the BR, interest rates are determined by banks’ benchmark cost of funds and Statutory Reserve Requirement (SRR).

BR should differ from bank to bank depending on their own efficiencies in lending.

1) BR will depend on the SRR determined by Bank Negara. It is the minimum level of reserves required for each bank to retain before lending out. If the central bank increases the SRR, the cost of lending will increase. You will notice that BR also increases.

2) The “Spread Rate” above the BR will be determined by the borrower’s credit risk, liquidity, operating cost and profit margin. If the bank’s profit were to increase, the BR would be reduced.

3) Correlation with the OPR. If Bank Negara increases the OPR, the BR will also increase.

BR is a floating rate. That means it could go up or down due to the above reasons.

“The spread is fixed. If we add this two we will get the Effective Lending Rate (ELR). Every bank has a different BR. So, is the BR the determining factor when you choose which bank to take a loan facility from?

“The lowest BR does not necessarily mean the lowest interest rate. It also depends on the spread. BR can be low but the spread can be very high. We have to look at the ELR to determine which package to take
Since 3 of them offer the same rate, pick 1 which you think has the following
1. Convenient in online banking
2. Branches nearby you
3. Charges incurred by the loan facility
4. Flexibility
5. Lock in period
6. Prepayment to your loan
7. Penalties
Seems okay to me for the loan amount that you're applying for.

You may pay extra every month whenever you have extra money to reduce your interest overtime.

The extra payment will help you to reduce your loan tenure because you've incurred less interest by paying more towards your loan principle.

If you pay just minimum installment amount then you'll definitely incur more interest overtime in 15 years.
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Hi,basically in terms the consideration points of all 3 banks,they are quite similar,charges also different by few ringgit,so I am wondering will it be risk if I take mbx since the spread has been locked at 1.30,while mbx can anytime revise their BR to higher value,so in the end i am paying higher rate compare other bank
For e.g. if one day mbx feels the cost has increased,so they revise BR to 3.5%,so my interest rate will significantly increase to 4.8%

lifebalance
post Dec 15 2017, 09:32 AM

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QUOTE(hontoni1983 @ Dec 15 2017, 07:06 AM)
Hi,basically in terms the consideration points of all 3 banks,they are quite similar,charges also different by few ringgit,so I am wondering will it be risk if I take mbx since the spread has been locked at 1.30,while mbx can anytime revise their BR to higher value,so in the end i am paying higher rate compare other bank
For e.g. if one day mbx feels the cost has increased,so they revise BR to 3.5%,so my interest rate will significantly increase to 4.8%
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Yea, same goes for other bank as well, they can also increase their BR higher. If 1 bank increases to 0.2%, likeliness will follow the same percentage unless the bank wishes to absorb the cost and earn lesser profit margin
ngph988
post Dec 15 2017, 02:49 PM

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QUOTE(hontoni1983 @ Dec 14 2017, 09:36 PM)
Hi Sifu here...I am receiving few loans offer from different bank,actually all banks are offering the same rate 4.3%,however, I understand these rate are based on BR rate, which comes out as these:

MBx: 4.3% (BR 3.00 + 1.3)
RHx: 4.3% (BR 3.65 + 0.65)
CIMx: 4.3% (BR 3.90 + 0.4)

Just wanted to know, the BR rate + xx amount is it fix? which means, if eventually e.g. MBx decide to increase BR to 3.3, my interest will subsequently be revised to 4.6%? If this concept is correct, then CIMx will be better choice? or is there a risk that CIMx maybe poor manage, and the BR increase to 4.2 + 0.4? with MBx being a more stable management??

With the rate and loan package the same (all are fully flexi), which one is the best to take?
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It depends which bank you prefer. If you're looking for full flexi loan, RHB will suits your appetite as they can have waived the maintenance charges (RM 10 + 6%GST) for whole life and you may transfer money via online banking.

As for discussion about Base Rate (BR) changes to impact Effective Rate (ER). You may refer to earlier posts for your personal understanding.

QUOTE(dragonnite999999 @ Dec 14 2017, 10:29 PM)
Hi Sifu in housing loan,

i received offer from Maybank,

loan amount : Rm90k

interest rate : 4.5%

loan tenure : 15 years

insurance premium : Rm873 cover 90k for 8 years

Is this offer best enough?

And one more thing, when i use the housing loan calculator to calculate, i found out that after finish pay during 15th year, i have paid total interest of Rm33,925. That amount of interest paid is mean a lot to me. Any idea on how to effectively reduce the interest to the most minimum? Let's say reduce to RM10k?

Thanks in advance!!!
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First of all congratulations to you for getting loan approved.

If you're wish to save interests, you may place extra money to reduce interests as housing loan interest is on daily rest. This will help you save more money in future rclxm9.gif
Pega101
post Dec 15 2017, 05:14 PM

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which bank provide lowest rate for 600k above loan ah ? without mrta
lifebalance
post Dec 15 2017, 05:16 PM

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QUOTE(Pega101 @ Dec 15 2017, 05:14 PM)
which bank provide lowest rate for 600k above loan ah ? without mrta
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if without MRTA not so sure, probably 4.4%. Can try a few banks to find out smile.gif
ngph988
post Dec 15 2017, 05:46 PM

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QUOTE(Pega101 @ Dec 15 2017, 05:14 PM)
which bank provide lowest rate for 600k above loan ah ? without mrta
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Probably HLB. First 24 months 4.15%, subsequent rate 4.30%
Italia
post Dec 16 2017, 01:02 PM

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200k which bank have the best rate? biggrin.gif
lifebalance
post Dec 16 2017, 01:03 PM

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QUOTE(Italia @ Dec 16 2017, 01:02 PM)
200k which bank have the best rate? biggrin.gif
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Pbb 4.22%
Pega101
post Dec 16 2017, 04:46 PM

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QUOTE(ngph988 @ Dec 15 2017, 05:46 PM)
Probably HLB. First 24 months 4.15%, subsequent rate 4.30%
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i think the fist 2 years with low int rate is not reli can benefit much for those new project..
lifebalance
post Dec 16 2017, 04:57 PM

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QUOTE(Pega101 @ Dec 16 2017, 04:46 PM)
i think the fist 2 years with low int rate is not reli can benefit much for those new project..
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You may say so since bank first 3 years for an undercon project won't payout so much, it'll only be starting on the 3rd year you'll start paying more to the bank since the project would be completed soon by then.

The total savings could be quite minimal for the first 2 years
ngph988
post Dec 16 2017, 10:33 PM

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QUOTE(Italia @ Dec 16 2017, 01:02 PM)
200k which bank have the best rate? biggrin.gif
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Probably PBB, for rate of 4.22%, subject to scoring. Coming by Maybank, HLB and OCBC. In range for 4.28% - 4.4%.

QUOTE(Pega101 @ Dec 16 2017, 04:46 PM)
i think the fist 2 years with low int rate is not reli can benefit much for those new project..
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Well, the rate will subject to your scoring. If you wish to have best rate, PBB will be the among the local banks. But the rate will need to attach MRTA.

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