In a super simplified way in a restaurant setting

OPR (not always exactly take the value, some banks may differ like xx bps lower etc..) = Basic food ingredient cost
BLR = Utilities cost, labour cost, etc (OPR (from above) + whatever cost incurred extra to process the loan)

+ xx% = markup for the food (this will be  vary based on your financial & Credit situation, are you a risky loan etc wadnot)

thats my understanding, at least

----

On your next point, because monthly installment is calculated based on current BLR + %% rate
so if OPR increase next time (means BLR Increase), meaning that whatever you pay now (supposedly unchanged) is paying more to interest portion and less to principal

meaning that in future your installment amount may get adjusted (but i think nor for much, not sure the calculation, maybe will be extra 50-100 depending on loan amount?)

In a super simplified way in a restaurant setting

OPR (not always exactly take the value, some banks may differ like xx bps lower etc..) = Basic food ingredient cost
BLR = Utilities cost, labour cost, etc (OPR (from above) + whatever cost incurred extra to process the loan)

+ xx% = markup for the food (this will be  vary based on your financial & Credit situation, are you a risky loan etc wadnot)

thats my understanding, at least

----

On your next point, because monthly installment is calculated based on current BLR + %% rate
so if OPR increase next time (means BLR Increase), meaning that whatever you pay now (supposedly unchanged) is paying more to interest portion and less to principal

meaning that in future your installment amount may get adjusted (but i think nor for much, not sure the calculation, maybe will be extra 50-100 depending on loan amount?)

hmm seems this is a tough one...

so there is no formula or something we can refer to predict how much the interest will increase once OPR back to normal?

can i say current time being is not a good time to buy property at all since the interest is unpredictable

hmm seems this is a tough one...

so there is no formula or something we can refer to predict how much the interest will increase once OPR back to normal?

can i say current time being is not a good time to buy property at all since the interest is unpredictable

may i suggest - the highest we had was 3.25% (which is +1.25% from current)... so whatever approved you had now + 1.25% will be (maybe) the highest you might be paying. if BNM + more %, then the higher you pay lo.

Loan Amount: 500k
Tenure: 35y

If bank offer 3.2% now ≈ RM1981 per month
If BNM increase back to the historically highest 4.45% (3.2%+1.25%) ≈ RM2350 per month
So when the bank increase +1.25% that time, you need to pay RM369

On interest calculation is abit difficult to determine because if based on your outstanding amount unless you lay down the excel sheet for the above scenarios.

thanks alot!

this is more easier to understand for me, hahaha...thats alot

why la bank earn so muchhhh

How to nego for a good rate now if refinance?

may i suggest - the highest we had was 3.25% (which is +1.25% from current)... so whatever approved you had now + 1.25% will be (maybe) the highest you might be paying. if BNM + more %, then the higher you pay lo.

Loan Amount: 500k
Tenure: 35y

If bank offer 3.2% now ≈ RM1981 per month
If BNM increase back to the historically highest 4.45% (3.2%+1.25%) ≈ RM2350 per month
So when the bank increase +1.25% that time, you need to pay RM369

On interest calculation is abit difficult to determine because if based on your outstanding amount unless you lay down the excel sheet for the above scenarios.

Hmmm, can i say if i want to apply bank loan for now, it is better to choose a bank that offer lowest interest? So in future, if adding 1.25% wont be so much? 

But I think there is not certainty right? hmmm 

Hmmm, can i say if i want to apply bank loan for now, it is better to choose a bank that offer lowest interest? So in future, if adding 1.25% wont be so much?  :confused:

But I think there is not certainty right? hmmm 

Yes of course the lower the better but so far I’ve seen lowest is 3.2% now.

Last time when I sign, so happened OPR -0.25%. So the rate they offer was from 4.40% to 4.15%. They say la, they say ah, don’t quote me, although the BR drop they will increase the spread rate to maintain around 4.30%~4.40%, just to jaga the bank’s profit.

Example,
Before -0.25%, bank offer = 3.77% BR + 0.63% SR = 4.40%
After -0.25%, bank offer = 3.52% BR + 0.63% SR = 4.15%
The following week, bank maintain back = 3.52% + 0.88% SR = 4.40%

Something like that (that’s what the banker tell me lahh)

so that mean no matter how the bank will increase back to their normal interest rate but capped right?