Hi, I received email from HLB with new installment amount starting in September.

want to ask, the new amount increase RM300 from my original amount, is this normal?

I take my loan on year 2021, interest that time 2.92, during interest rate changes period , no changes on my instalment amount. Only until recent interest down to 3.93 from 4.18 but instalment amount remain , then later this RM300 increase start Sep.

I try to googled but only found step up loan meaning but no adjustment.

Mind to share what does it mean ?
And this will happen based on interest rate up down in future?
Or it will happen definitely (more in future) regardless interest up down?

Thanks

Thank for the info.

In my case , start with 527k(90%) with 2.92% on year 2021, monthly installment is 2k during that time with full flexi, only started to pay full amount on mid year 2024 which it still remain the same and only increased recently.

Possible somehow maybe the installment amount does not match with loan amount, so the installment adjustment? (Just my guess)

I just wonder if the amount will increase let say after 5 years to 2.6k from 2.3k.

Anyway I will check with HLB next morning.

Hi, just update on my case.

After checking with CS, below is the reply i received.
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While interest rate has been lowered by the OPR cut, it's being compared to the much lower rate from when your loan was first approved.
The main reason for this increase is an adjustment for loans that met these conditions:
Approved at a historic low rate: Your loan was likely approved between 2019-2023 when rates were at a record low.
Was in "Progressive Release": While your property was under construction, you only paid for the interest on your loan, which was not an installment.
Because of this, your account didn’t undergo any installment revisions when OPR rates were raised in 2023.
This recent review is the first time your monthly installment has been adjusted since your loan is fully disbursed i.e. your property is now completed and you are now paying full installment (interest+principal).
The new installment ensures your loan will be paid off on time within its original tenure as per the agreed terms stated in the letter of offer.
For a detailed breakdown of your specific account, please contact us through our secure channels.
===

I was also informed by CS that this adjustment was also due to my full disbursement was made on 22/08/24 which after that i started paying 2k per month. but i just wonder why no adjustment was done straight after the full disbursement.

I have emailed to the relevant department as per suggest by CS to ask for a detailed breakdown but no reply from them yet.