QUOTE(1282009 @ Jan 8 2018, 07:49 PM)
Very good questions u have posted. I got a loan offer below.
Bank A:
BR 3.0 + 1.25 = 4.25% (without MRTA)
Lock in period from VP = 3 yrs (2% penalty)
semi flexi, withdrawal charges rm25 per transaction
Late charges by a month = interest increase by 1% (after 6 months can appeal if record is good)
Easy to find branches
Pleasant experience with bank (salary credited to this bank)
Bank B:
BR 3.9 + 0.4 = 4.30% (without MRTA)
semi flexi, withdrawal charges rm10 per transaction
No past experience with this bank
What makes me confused is that banker B told me that since bank A has low BR, very likely they
will increase their BR faster and higher than bank B since bank B already has high BR of 3.9.
Is this at all valid? Which bank will u choose?
No, it will not make sense.
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
Go for 4.25%
QUOTE(Aeon89 @ Jan 8 2018, 07:58 PM)
Question
I am interested in a house in KL,
Can i apply housing loan in Penang for the house in KL?
Noob here
Note its a sub sale unit
Should be okay depending on the policy of the bank, some banks will ask you to pass the case to KL branch instead.