Previously u get BLR + 1%

Due to current bad times, bank offer BLR + 1.15% to cover profit

So when economy recover, and OPR get back to pre-covid level you will paying a rate 0.15% more than old times

Of course for now, you will enjoy the low rates

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

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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?)

You can use the PMT formula in excel to get a rough estimate, can google for how to fill in values, play around with the int rate after bank offer u a loan (plz take note always use outstanding amt)

Depends on what u have actually.

Can u afford one now? Is your income stream and savings strong enough to support it? If you buy it now, does it achieve towards your goals?

Now is buyers market that maybe able to get some good offers. But we are not you, we can't decide for you it is a good time, decision or not. Take your time to consider if needed.

Cheers!

This post has been edited by viktorherald: May 26 2020, 09:26 AM