Mar 10 2020, 02:27 PM
QUOTE(DisneyHome @ Mar 4 2020, 07:14 AM)
A lot of borrowers not really understand the interest mechanism how to impact lending policy
A lot of borrowers misleading & miscalculating the lending cost
I will give you direct example :-
Scenario 1 :-
Mr.A has borrowed the loan from Bank during Dec'19, the bank offering him by BR + 0.50% = 4.25% (during Dec'19 period, BR only 3.75%)
So now Bank Negara Malaysia (BNM) suddenly had announced 2 time interest rate cut (OPR cut), 1st cut at 23/01/20 by 0.25% and 2nd cut at 03/02/20 by 0.25%
Simultaneously Mr.A will enjoy lower interest rate charged by 0.50%, which mean now Mr.A can enjoy 3.75% home loan interest rate
Scenario 2 :-
Mr.Y now intend to apply home loan but unfortunately bank can offer BR + 1.00% = 4.25% (new BR is 3.25% after OPR cut 2 times)
So Mr.Y has asked the bank, why your bank still maintain offering 4.25% since BNM had already announced 2 times OPR cut??
The Bank officer told Mr.Y that, despite BNM had already cut 2 time OPR, it does not mean new home loan application can lower down the interest rate because now bank profit margin getting lower & lower
If, the Mr.Y taking the home loan right now, ie BR + 1.00% = 4.25%, in future Mr.Y need to absorb higher interest cost
The reason behind is because BR can adjust anytime but spread rate (ie +1.00%) is fixed for entire home loan, in other word, if next few years later BNM gradually increase back OPR at the same time BR also adjust back, let say gradually increase by 0.75%, so Mr.Y home loan interest rate cost become 5.00%
Now you know why NOT BENEFIT for those new home loan application
Copy paste from whatapps group: A lot of borrowers misleading & miscalculating the lending cost
I will give you direct example :-
Scenario 1 :-
Mr.A has borrowed the loan from Bank during Dec'19, the bank offering him by BR + 0.50% = 4.25% (during Dec'19 period, BR only 3.75%)
So now Bank Negara Malaysia (BNM) suddenly had announced 2 time interest rate cut (OPR cut), 1st cut at 23/01/20 by 0.25% and 2nd cut at 03/02/20 by 0.25%
Simultaneously Mr.A will enjoy lower interest rate charged by 0.50%, which mean now Mr.A can enjoy 3.75% home loan interest rate
Scenario 2 :-
Mr.Y now intend to apply home loan but unfortunately bank can offer BR + 1.00% = 4.25% (new BR is 3.25% after OPR cut 2 times)
So Mr.Y has asked the bank, why your bank still maintain offering 4.25% since BNM had already announced 2 times OPR cut??
The Bank officer told Mr.Y that, despite BNM had already cut 2 time OPR, it does not mean new home loan application can lower down the interest rate because now bank profit margin getting lower & lower
If, the Mr.Y taking the home loan right now, ie BR + 1.00% = 4.25%, in future Mr.Y need to absorb higher interest cost
The reason behind is because BR can adjust anytime but spread rate (ie +1.00%) is fixed for entire home loan, in other word, if next few years later BNM gradually increase back OPR at the same time BR also adjust back, let say gradually increase by 0.75%, so Mr.Y home loan interest rate cost become 5.00%
Now you know why NOT BENEFIT for those new home loan application
Lowest rate for each bank (for new loan application)
*As at 10th March 2020* 1.30pm
☀ PBB - 3.9% (Gred A, 3.65%)
☀ RHB - 3.85%
☀ HLBB - 3.8% (If good profile can get 3.7%)
This post has been edited by AskarPerang: Mar 10 2020, 02:28 PM
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