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 

The for funny things is if I purchase new property, at least need to wait 3 years for completion & vacant possession

During construction period, I only serving interest charged by progressively completion of each stage

Even though, might be, this 2 or 3 years I can willing bear the risk of interest cost by 4.25% (subject to no changes on this 3 years) because still serving interest cost from small ticket of interest charged to gradually increase until VP

Unfortunately after I got my home key, going to start instalment, BNM going to start normalising OPR, so my instalment also gradually increased & monthly interest charged also increased   

Don't forget right now supply more than demand market situation, if I want to rent out to cover my cost, rental market become more & more competitive