It will remain fixed. When you are offered a loan, the effective interest rates will be quoted as:

BR + x.xx%

BR will fluctuate according to the bank's and the nation's economic performance, the spread will remain the same

Only for illustrative and educational purposes:

Thanks. In that case is it safe to say that higher BR is better?

Lower BR rates will give lower effective interest rates for you, which in turn is better for you.

Higher BR is usually accompanied by lower spread to give the competitive effective rate.

For example 3.2% + 1.25% vs 4.0% + 0.45%.

Which one will be better option?

This is all so new, so we may not know how the BR would move for each bank, although the mechanisms are understood. but I would probably go for lower spread and higher BR than higher spread and lower BR. The lower BR may actually have higher room of movement compared to higher BR. But this is just my gut feeling and shouldn't be taken in as professional opinion, because frankly, I dont know how much movement there will be between the banks. Will they move differently from each other, similarly, or completely the same? It will probably be the 1st guess (they will move differently) but without any reference or historical data, it is very hard to tell.

But this only goes for offers with similar effective interest rates. If you are offered EIR 4.4% @ BR (3.2%) + 1.2% VS  4.85% @ BR (4.05%) + 0.8%, it shouldn't be difficult to choose.

That's what I'm thinking too until iMoney suggests overwise.
Thanks for your opinion bro! Appreciate it

Understood. It seems that I may have been proven wrong. Do you have a link to that particular iMoney article? Thanks in advance.

Thank you very much.


If the properties price is 1.2 M, rebated 15%, can I loan 1.2 M ? is it true that higher loan amount will entitle for lower rate ?

The rates remain the same, but BR change right ? what is the longest tenure, if join loan of buyers age at 30 and 50 ?

can help ? Thank you.

1. In your case, you can get up to 90% of the 1.2M house price. Rebates are from the developers, as long as the banks do not know about this you would be fine. Essentially, you will get RM1.08m in loans, and you will get RM180k in cash from the developer (partly used to pay your downpayment).

2. Yes, as per normal bank practice, higher loans will usually entitle to better spread when you are quoted the interest rates, thus giving you a better effective interest rates.

3. When the BR change, your effective interest rates (EIR) would also change accordingly. For Maybank, the BR is currently 3.2%, and a client of mine is offered BR +1.25% which is currently translated to 4.45% EIR. If Maybank changes its BR to 3.4% in the future, that particular client's interest would STILL be calculated at BR + 1.25%, but since the BR has increased by 0.2%, so will his EIR increase by the same quantum, which is now calculated at 4.65%

4. Yes, I can help with application to 5 major banks in Malaysia: Maybank Ambank Alliance HLB OCBC, at no charge as I get my commissions from the banks.

Faiz +6 013 369 3993

Lower BR rates will give lower effective interest rates for you, which in turn is better for you.

I was bed ridden for a bit though due to dengue. But I was very concerned about my clients' applications though since there were some that I had to KIV. Buit all is well now, I am close to 100%.
1. Yes, the max MOF for refinancing is capped at 90% of the MV for most banks (some banks cap at 80% or lower) and it is POSSIBLE to finance/loan only 50% or lower than the MV of the property. The banks prefer it that way too, you pledge a 100% property, but they only need to give you 50% of the MV to you in cash...

2. Yes, it is possible to put someone other than family members for a joint loan. This is a grey area that I would rather not talk about, but if you say a random person is your "sister-in-law" that wishes to joint-loan or apply for the 3rd party loan on behalf of your property, how are we supposed to prove that the person isn't your sister-in-law?

But remember, the banks have the rights to reject any loan application if they feel something amiss. For example, the SPA name is AHMAD, but the "Sister-in-law" is Ms. CHAN, the bank may require further proof of this relationship :
THis is a grey area, but I will speak my mind since sharing ideas is not illegal. It is possible to apply for CASE 2 from different banks than you applied for CASE 1, and when you accept them at the same time, the banks wouldn't know that you have these loans accepted together.

I know those who have 5 90% loans that he took all at the same time.

what is the longest tenure, if join loan of borrowers age at 30 and 50 ?

accepting all loans from different banks ... hmm... wont the ccris be updated instantly once loan approved and accepted? or it takes time for ccris to be updated?

For some banks, will follow the younger one, other banks will follow the older one.

That means the maximum would be 35 years tenure. As a mortgage broker, I will propose the right banks for the right client situation.
It will take time for the CCRIS to be updated since there will be an internal paperwork to be done before the bank will update the "loan acceptance" to the CCRIS.

This is a dangerous game though, a grey area that have been done but I wouldn't put all my baskets into it.

Might be loopholes for those who want to apply personal loans or credit cards too in one SHOT with all different banks. Imagine one bank RM100k PL, 10 banks how much? Ha ha.. AFter that got the money disburse from all banks and at least you have 1 million in hand now (not included credit cards). Some people think it's worth with the money and self declare bankrupt . lol??

Weakness of CCRIS perhaps? should be in REALTIME updates.

Might be loopholes for those who want to apply personal loans or credit cards too in one SHOT with all different banks. Imagine one bank RM100k PL, 10 banks how much? Ha ha.. AFter that got the money disburse from all banks and at least you have 1 million in hand now (not included credit cards). Some people think it's worth with the money and self declare bankrupt . lol??

Weakness of CCRIS perhaps? should be in REALTIME updates.

In reality not so possible.  Big amount of personal loan mostly are secured - unless you have so many unencumbered assets for the loans.  Further, before loan disbursements, the banks may do another round of CCRIS /CTOS checking. So if notice a sudden huge build up of indebtedness,  the banks reserve rights to withhold disbursements.

Yeah. One should be free of debts in other words to apply PL.. Once approved from all the banks lol... imagine that.. Submitted all in the same time, and i guess all approval will take only 2-3 working days upon submission.

So i guess this is the weakness for CCRIS as it took maybe one week time to update? Correct me if i'm wrong

1. Yes, the max MOF for refinancing is capped at 90% of the MV for most banks (some banks cap at 80% or lower) and it is POSSIBLE to finance/loan only 50% or lower than the MV of the property. The banks prefer it that way too, you pledge a 100% property, but they only need to give you 50% of the MV to you in cash...

2. Yes, it is possible to put someone other than family members for a joint loan. This is a grey area that I would rather not talk about, but if you say a random person is your "sister-in-law" that wishes to joint-loan or apply for the 3rd party loan on behalf of your property, how are we supposed to prove that the person isn't your sister-in-law?

But remember, the banks have the rights to reject any loan application if they feel something amiss. For example, the SPA name is AHMAD, but the "Sister-in-law" is Ms. CHAN, the bank may require further proof of this relationship :