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> What is/How to calculate BLR and interest rate?, Please show a sample calculation/explain

yeehs18
post Jul 31 2007, 11:48 AM


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House : RM 577,000
Loan Amount : 537,000
Loan Tenure : 30 years

Anyone can provide a explanation and sample calculation for any loan package? I just need to understand how these BLR things and interest rate are calculated for a sample house above. Also explain a bit.

Many thanks.

This post has been edited by yeehs18: Jul 31 2007, 11:56 AM
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yewkhuay
post Jul 31 2007, 11:53 AM


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house price 577K, but loan take how much?

this is a very simple question as the BLR is fixed and the loan interest offered by bank are different....

if u r really buying tht kinda house, speak to the bank officer in sales site or approach any banks for loan package they hav.
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yeehs18
post Jul 31 2007, 11:57 AM


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Sorry for missing the info, I updated the first post. I just need to know how to calculate these things so that i can do a quick fast self reseach online before i approach the bank for further talk. Cause so many options out there. I need to know the rough idea.

This post has been edited by yeehs18: Jul 31 2007, 11:59 AM
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agent7
post Jul 31 2007, 12:09 PM


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QUOTE(yeehs18 @ Jul 31 2007, 11:48 AM)
House : RM 577,000
Loan Tenure : 30 years

Anyone can provide a explanation and sample calculation for any loan package? I just need to understand how these BLR things and interest rate are calculated for a sample house above. Also explain a bit.

Many thanks.
*
Hi there, biggrin.gif

BLR in M'sia now is 6.75%, set by Bank Negara.

It depends on which bank and which loan package you take,

For example:

Let's say Bank U offers u a package of BLR-1.5% for 30 years. (BLR = 6.75%)

Means 6.75-1.5 = 5.25%. If u borrow full loan, means 90% from RM 577,000,

your loan amount is 90% x RM 577,000 = RM 513,000.

Your interest is 5.25% per year of the loan amount.

You will be paying about RM 3,669 / month for this loan example (without calculating reducing balance) since this is a normal maths calculation.

Hope this simple explanation enligtens you a bit.

You may contact me for free consultation, I am a financial planner. smile.gif

Regards,
Edwin Thong
edwinthong@easternlink.com.my
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yeehs18
post Jul 31 2007, 12:34 PM


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Ah, now i got the idea. Thanks for the info. Many thanks.
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jcvstlys
post Jul 31 2007, 12:54 PM


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You forgot to note that BLR will change and it is unpredictable whether it will rise or drop
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kenji1903
post Jul 31 2007, 01:59 PM


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http://www.fiscal-wise.com.my/FiscalWiseWe...nRepayment.aspx
it speaks for itself smile.gif

BLR - Base lending rate is controlled by Bank Negara, current rate is 6.75%

usually banks will give something like BLR-1%, which gives you an interest rate of 5.75%

use the website because the actual calculation is long...
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utellme
post Jul 31 2007, 03:38 PM


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QUOTE(kenji1903 @ Jul 31 2007, 01:59 PM)
http://www.fiscal-wise.com.my/FiscalWiseWe...nRepayment.aspx
it speaks for itself smile.gif

BLR - Base lending rate is controlled by Bank Negara, current rate is 6.75%

usually banks will give something like BLR-1%, which gives you an interest rate of 5.75%

use the website because the actual calculation is long...
*
how my program help u to calculate... biggrin.gif
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lee088
post Aug 2 2007, 12:32 AM


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come across this posting on type of housing loan selection at smartconsumerbanking.com, may be there is something related for you.
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vergas
post Aug 2 2007, 05:07 PM


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QUOTE(agent7 @ Jul 31 2007, 12:09 PM)
Hi there,  biggrin.gif

BLR in M'sia now is 6.75%, set by Bank Negara.

It depends on which bank and which loan package you take,

For example:

Let's say Bank U offers u a package of BLR-1.5% for 30 years. (BLR = 6.75%)

Means 6.75-1.5 = 5.25%. If u borrow full loan, means 90% from RM 577,000,

your loan amount is 90% x RM 577,000 = RM 513,000.

Your interest is 5.25% per year of the loan amount.

You will be paying about RM 3,669 / month for this loan example (without calculating reducing balance) since this is a normal maths calculation.

Hope this simple explanation enligtens you a bit.

You may contact me for free consultation, I am a financial planner.  smile.gif

Regards,
Edwin Thong
edwinthong@easternlink.com.my
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I'm very surprise to see that you don't use reducing balance since housing loan in malaysia use reducing balance. kenji1903 link http://www.fiscal-wise.com.my/FiscalWiseWe...nRepayment.aspx would do the calculations and the answer is RM2832.80 per month. Unfortunately you need to use IE and not firefox to view it properly. I have checked using financial calculator.

Alternatively you can use excel
=PMT(0.0525/12,30*12,513000,0,0)
It will give the same answer

where it is =PMT(rate /12 since its monthly payment, number of installment (30 years times 12 months), loan amount, default, default)

btw: BLR is not set by Bank Negara (like suggested by agent7) , its set by individual bank. Bank Negara set the OPR (Overnight Policy Rate).

This post has been edited by vergas: Aug 3 2007, 07:56 AM
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Giny2008
post Sep 9 2008, 01:42 PM


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QUOTE(agent7 @ Jul 31 2007, 12:09 PM)
Hi there,  biggrin.gif

BLR in M'sia now is 6.75%, set by Bank Negara.

It depends on which bank and which loan package you take,

For example:

Let's say Bank U offers u a package of BLR-1.5% for 30 years. (BLR = 6.75%)

Means 6.75-1.5 = 5.25%. If u borrow full loan, means 90% from RM 577,000,

your loan amount is 90% x RM 577,000 = RM 513,000.

Your interest is 5.25% per year of the loan amount.

You will be paying about RM 3,669 / month for this loan example (without calculating reducing balance) since this is a normal maths calculation.

Hope this simple explanation enligtens you a bit.

You may contact me for free consultation, I am a financial planner.  smile.gif

Regards,
Edwin Thong
edwinthong@easternlink.com.my
*
[QUOTE]

Hi, may i know how to calculate if first year the interest is 5, then second year is 5.75 and the thereafter year is 6.75? Anyone have complete calculation formula for this issue
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D-Tourist
post Sep 9 2008, 03:18 PM


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I dun think the bank use the simple denominator of 12 mths to apportion the interest rate chargeable, but instead they use something days to calculate (supposedly 366 days or 370 days) I'm not sure? coz can never get the same amount of interest they charge as per the bank statements.

Anyone from Bank can clarify the actual calculation.
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negisf
post Sep 19 2008, 12:01 PM


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i have the simple excel formula sheet to calculate this home loan stuff, any interested?
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stpsae
post Apr 23 2010, 04:36 PM


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the formula is:

monthly payment = L*(i+{i/[(1+i)^n]-1})

where L=housing loan, i=interest in month, n=tenure in month

e.g:
L=51300
i=0.004375
n=360
so,
monthly payment=2832.8

This post has been edited by stpsae: Apr 23 2010, 07:46 PM
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freedomlonely
post May 23 2010, 04:39 PM


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So as i know that the recently BLR Malaysia is 6.05% nw, can i know that now BLR is in (+) or (-) position?

THank you.....
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riclnh
post Jun 17 2010, 03:43 PM


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me also donno how to calculate..
planning to buy new house but totally no idea on housing loan..

if loan amt is RM320k, take 20yrs loan so mthly installment is how much?
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leongal
post Jun 17 2010, 04:54 PM


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need also to know the rate that the bank is giving you for the loan to arrive at the monthly repayment
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g r a p e k e y
post Jun 18 2010, 01:57 AM


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QUOTE(kenji1903 @ Jul 31 2007, 01:59 PM)
http://www.fiscal-wise.com.my/FiscalWiseWe...nRepayment.aspx
it speaks for itself smile.gif

BLR - Base lending rate is controlled by Bank Negara, current rate is 6.75%

usually banks will give something like BLR-1%, which gives you an interest rate of 5.75%

use the website because the actual calculation is long...
*
broken link?


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khhong88
post Jun 20 2010, 02:01 PM


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QUOTE(g r a p e k e y @ Jun 18 2010, 01:57 AM)
broken link?
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1) Check out the simple calculation of monthly loan repayment at http://property.simedarby.com/Home_Loan_Calculator.aspx.

2) Current BLR is 6.05% for most of the major banks, however, some banks may vary, eg : Al-Rajhi bank's BLR is 6.35%.

3a) The loan packages bank offering now is mostly at BLR -1.8% to -1.9% for loan amount below 500k, BLR -2.0% to to -2.1% for loan amount 500k & above for residential property.

3b) The loan packages for commercial is at BLR -1.5%, depends on your financing amount.

4) Meanwhile, pls note the legal fee for loan agreement, valuation, MRTA/MLTA & fire insurance will be borne by you. However, legal fee & MRTA can be financed into your loan.

5) The financing margin is 90% for residential & 80% for commercial property.

6) The maximum loan tenure is depends on your entry age. Most of the banks offerred 30 years tenure. However, some banks may approved up to 40 years of tenure or age 70.

7) The stamp duty for first time buyer on Sales & Purchase agreement (SPA) & loan agreement is discounted 50%.

I can recomend a very good lawyer firm for your SPA & help you out on the loan packages based on your financial background & your future planning. It's free of charge!

Please feel free to email me at khhong88@gmail.com if you need further advice or assistance.
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merce
post Jun 20 2010, 10:37 PM


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QUOTE(stpsae @ Apr 23 2010, 04:36 PM)
the formula is:

monthly payment = L*(i+{i/[(1+i)^n]-1})

where L=housing loan, i=interest in month, n=tenure in month

e.g:
L=51300
i=0.004375
n=360
so,
monthly payment=2832.8
*
lovely formula thumbup.gif

QUOTE
7) The stamp duty for first time buyer on Sales & Purchase agreement (SPA) & loan agreement is discounted 50%.


subject to RM250k below. smile.gif (or was there an update again?)


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neerza3112
post Jun 25 2010, 05:22 PM


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hai all,i want to ask,i want to buy a house,the price is RM80k,planning for 30years,i know that most bank rate is 6.5%,using the sime darby calculator,monthly is about rm506,will it be the same each month or will increase each year?
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Shazzac
post Jun 26 2010, 08:57 AM


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QUOTE(neerza3112 @ Jun 25 2010, 05:22 PM)
hai all,i want to ask,i want to buy a house,the price is RM80k,planning for 30years,i know that most bank rate is 6.5%,using the sime darby calculator,monthly is about rm506,will it be the same each month or will increase each year?
*
Normally the loan officer that service you will be able to provide to you the installment payment list.

If the rates do not go up or down, it'll remain the same throught the tenure.
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ubsacc2004
post Jun 26 2010, 08:59 AM


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hm the bank rate not 6.05% ? and mostly BLR -1.8 %.
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leongal
post Jun 26 2010, 09:00 AM


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QUOTE(neerza3112 @ Jun 25 2010, 05:22 PM)
hai all,i want to ask,i want to buy a house,the price is RM80k,planning for 30years,i know that most bank rate is 6.5%,using the sime darby calculator,monthly is about rm506,will it be the same each month or will increase each year?
*
the monthly repayment suppose to go out according the changes in blr if you are under the flexi loan package; however, though blr has changed twice, my monthly repayment amount remains the same, not sure if they are going to change it next year or wat.... rolleyes.gif
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sonerin
post Jul 6 2010, 07:34 AM


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Your monthly repayment will be the same if you are on flexi loan. The effect is you are now paying less for your principal loan compare to previously when the BLR is lower.
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Superman7
post Jul 10 2010, 11:09 PM


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QUOTE(vergas @ Aug 2 2007, 05:07 PM)
I'm very surprise to see that you don't use reducing balance since housing loan in malaysia use reducing balance. kenji1903 link  http://www.fiscal-wise.com.my/FiscalWiseWe...nRepayment.aspx would do the calculations and the answer is RM2832.80 per month. Unfortunately you need to use IE and not firefox to view it properly. I have checked using financial calculator.

Alternatively you can use excel
=PMT(0.0525/12,30*12,513000,0,0)
It will give the same answer

where it is =PMT(rate /12 since its monthly payment, number of installment (30 years times 12 months), loan amount, default, default)

btw: BLR is not set by Bank Negara (like suggested by agent7) , its set by individual bank. Bank Negara set the OPR (Overnight Policy Rate).
*
Thanks for the formula.
From the above example, the monthly payment will be 2832.80.
But as you have mentioned that in Malaysia, the housing loan is a reducing balance type, does it mean I will be paying more during my first few years of loan tenure or the payment of 2832.80 will be fixed throughout the 30yrs loan tenure?
If it is fixed at 2832.80 per month throughout the tenure, I can only say that the first few years of the loan tenure will be subjected to paying more of interests than the principal. Is that understanding correct? Pls help to clarify.

Next, if the interest is counted in daily rest instead of monthly rest, the formula above will no longer be true right?
This way of calculating will work?

(=PMT(0.0525/365,30*365,513000,0,0))*30
where it is =PMT(rate /365 days, number of installment (30 years times 365 days), loan amount, default, default)*days in a month

obviously the leap year and the number of days within a month will be different.
Thanks.

This post has been edited by Superman7: Jul 10 2010, 11:36 PM
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ginjiwei
post Jul 27 2010, 04:04 PM


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Oh no...the BLR rate now is 6.3% set by PNB...
So anyone know which bank giving the best BLR-x package now?

My parents r hoping to get a RM590k, 2nd hand house, r we eligible to get 70-80% loan?
What is the criteria for a bank to approve a loan amount of RM400k? how much is the loan installment monthly for 30yrs tenure?


notworthy.gif Any expert/consultant? Pls PM me and help on this issue. Urgent! As my parents like the house very much... blush.gif

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eugene jk
post Jul 27 2010, 04:44 PM


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QUOTE(ginjiwei @ Jul 27 2010, 04:04 PM)
Oh no...the BLR rate now is 6.3% set by PNB...
So anyone know which bank giving the best BLR-x package now?

*
BN dun set BLR, they only set OPR.. Bank set BLR respectively.. not all banks hav same BLR
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zom
post Dec 8 2010, 03:40 PM


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sorry new to property here abit off topic, if during the loan period i were to sell off the property wat's the procedure like? and the remaining loan amount will be bare by the new owner? thanks
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jay28
post May 5 2011, 02:33 AM


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Hi Guys,

Can anyone tell how MRTA (Mortgage insurance) premium is calculated for Housing loan? Below is the details:-

Case 1(Single Accoount)
Applicant Sex : Male
Applicant Age : 32
Loan Amount : RM 200,000
Loan Tenure : 30 years

Case 2 (Joint Account)
Applicant Sex : Male
Applicant Age : 32
Loan Amount : RM 200,000
Loan Tenure : 30 years

Co-Applicant Sex : Female
Co-Applicant Age : 31
Loan Amount : RM 200,000
Loan Tenure : 30 years

Is there any common formula used by banks to calculate the MRTA premium amount.

Looking forward for reply.

Regards,
Jay

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prody
post May 5 2011, 09:19 AM


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QUOTE(jay28 @ May 5 2011, 02:33 AM)
Hi Guys,

Can anyone tell how MRTA (Mortgage insurance) premium is calculated for Housing loan? Below is the details:-

Case 1(Single Accoount)
Applicant Sex : Male
Applicant Age : 32
Loan Amount   : RM 200,000
Loan Tenure     : 30 years

Case 2 (Joint Account)
Applicant Sex : Male
Applicant Age : 32
Loan Amount   : RM 200,000
Loan Tenure     : 30 years

Co-Applicant Sex : Female
Co-Applicant Age : 31
Loan Amount         : RM 200,000
Loan Tenure          : 30 years

Is there any common formula used by banks to calculate the MRTA premium amount.

Looking forward for reply.

Regards,
Jay
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No clue what is the formula, but you can calculate it here.

Website is no longer working.

This post has been edited by prody: Jan 16 2012, 01:58 PM
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jay28
post May 5 2011, 11:31 PM


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hi bro

thanks for the link.
use full link
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alyem
post Jun 22 2011, 07:53 PM


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Bro prody.

Broken Link
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plumberly
post Jan 14 2012, 08:11 PM


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Got a loan with a bank for more than 8 years now. Planning to ask for a reduction in the loan rate. Like to know what is the best/lowest rate in the market now. BLR - x % ? Will use that as my target/bargaining rate. Thanks.
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idoblu
post Jan 14 2012, 09:50 PM


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-2.4 at least
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LYR
post Jan 14 2012, 10:12 PM


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QUOTE(ginjiwei @ Jul 27 2010, 04:04 PM)
Oh no...the BLR rate now is 6.3% set by PNB...
So anyone know which bank giving the best BLR-x package now?

My parents r hoping to get a RM590k, 2nd hand house, r we eligible to get 70-80% loan?
What is the criteria for a bank to approve a loan amount of RM400k? how much is the loan installment monthly for 30yrs tenure?
notworthy.gif Any expert/consultant? Pls PM me and help on this issue. Urgent! As my parents like the house very much... blush.gif
*
you can easily calculate the monthly installment at any bank's website by using their mortgage loan calculator provided that you have all the information.

for your case,
1. BLR - x? assuming 3.9% net
2. house price? RM590K
3. downpayment? 20%
4. period of repayment? 30 years @ 360 months

i reckon the rule of thumb of getting loan approved is by having net salary/income (after EPF deduction) at least 3 times higher of the monthly installment.
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1282009
post Jan 14 2012, 10:21 PM


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QUOTE(prody @ May 5 2011, 09:19 AM)
No clue what is the formula, but you can calculate it here.

Fiscal WISE
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It brought me to this link http://1-million-dollar-blog.com/ instead rclxub.gif


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prody
post Jan 16 2012, 01:57 PM


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QUOTE(1282009 @ Jan 14 2012, 10:21 PM)
It brought me to this link http://1-million-dollar-blog.com/ instead  rclxub.gif
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Whole website is gone yeah.
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lsang
post Jan 16 2012, 03:12 PM


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Hello, sorry to piggyback on this thread. I didn't find any post related to the question and did not want to open a new thread.

Question - Should i withdraw my AccountII EPF to reduce my remaining loan balance or just leave it dormant in EPF?
Considering, housing loan interest is calculated on daily basis i'm assuming even with a BLR -1.9, the interest would be still higher compared to EPF return since EPF is culculated on annual basis?
Appreciate any replies ya. Thanks!
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Money-management
post Mar 19 2013, 01:52 PM


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QUOTE(yeehs18 @ Jul 31 2007, 11:48 AM)
House : RM 577,000
Loan Amount : 537,000
Loan Tenure : 30 years

Anyone can provide a explanation and sample calculation for any loan package? I just need to understand how these BLR things and interest rate are calculated for a sample house above. Also explain a bit.

Many thanks.
*


I'm able to manage the interest and tenure become half.... Where ever the fluctuation of blr, we still manage to calculate the best rate for ur repayment... Kindly reply thx

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Money-management
post Mar 19 2013, 01:54 PM


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QUOTE(lsang @ Jan 16 2012, 03:12 PM)
Hello, sorry to piggyback on this thread. I didn't find any post related to the question and did not want to open a new thread.

Question - Should i withdraw my AccountII EPF to reduce my remaining loan balance or just leave it dormant in EPF?
Considering, housing loan interest is calculated on daily basis i'm assuming even with a BLR -1.9, the interest would be still higher compared to EPF return since EPF is culculated on annual basis?
Appreciate any replies ya. Thanks!
*
No, not advisable, coz u will automatically or indirectly affect ur tenure of repayment with extra repayments still.
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Money-management
post Mar 19 2013, 02:03 PM


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QUOTE(vergas @ Aug 2 2007, 05:07 PM)
I'm very surprise to see that you don't use reducing balance since housing loan in malaysia use reducing balance. kenji1903 link  http://www.fiscal-wise.com.my/FiscalWiseWe...nRepayment.aspx would do the calculations and the answer is RM2832.80 per month. Unfortunately you need to use IE and not firefox to view it properly. I have checked using financial calculator.

Alternatively you can use excel
=PMT(0.0525/12,30*12,513000,0,0)
It will give the same answer

where it is =PMT(rate /12 since its monthly payment, number of installment (30 years times 12 months), loan amount, default, default)

btw: BLR is not set by Bank Negara (like suggested by agent7) , its set by individual bank. Bank Negara set the OPR (Overnight Policy Rate).
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OPR is also affect by IMF, to realize the BLR rate ... Is this such case.. what if tenure and interest cut to 50%
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cthoong
post Aug 12 2013, 12:34 PM


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QUOTE(Money-management @ Mar 19 2013, 02:03 PM)
OPR is also affect by IMF, to realize the BLR rate ... Is this such case.. what if tenure and interest cut to  50%
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http://www.imoney.my/home-loan?utm_source=...CFfF24godPVEAhg
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