Foe those of us with housing loans, how will we know how much extra to pay, given the rise in OPR?

Banks will adjust automatically

Example I’m paying rm1,618 now. What do you mean adjust automatically? How will I know how much extra to pay?

Check your installment amount in the loan account. It will be adjusted soon.

How much outstanding you have? Yes will impact. But not much.

Last time my bank sent me a letter informing me the new monthly instalment amount whenever there is a change

Probably another 70 to 100 bucks extra

Take outstanding loan times 0.25% divided by 12 months

For me it's around rm65 bucks, i foresee they will raise it few times in a year maybe.

Bank will adjust accordingly and inform you via a letter...correct me im wrong...i think you just add additional 0.25% to your current loan, if your ELR is 3% atm...then it will probably be 3.25% now...but again im not sure on this so better check with the bank

If in doubt, better call the bank. Just in case they didn't send you the letter.

Probably around 50-80 bucks extra depending on the total loan amount.

This should be expected lah bro. Our current OPR is at baseline dy, they pushed it down for covid relief. Now it's going back to normal. Expect another 3-4 rounds of increment.

Shouldnt be a surprise.

i was wondering on this scenario.

some bank are slow to reduce their BR during the reduction of OPR in 2020.

Some reduction of BR is not in tandem of OPR reduction, for eg OPR reduce 0.5, BR reduced by less than that.

and even OPR at a low of 1.75%, some of their BR are still quite high.

now as OPR eventually increase to, say 3%.

will it cause the total effective interest (BR+Spread) to be higher for housing loan applicants taking loan during
OPR 1.75% or OPR 3% before 2020?

This post has been edited by sjz: May 12 2022, 10:27 AM

OPR is not your interest rate, always plus premium

Can check at internet banking, on your loan details

As some said; additional monthly payment is less than a family lunch on Sunday, is uneventful.

Liked your narative. A sunday's lunch.

It is possible raise interest rate like in 1998 up to 12%.

And from what basis that made you think it is possible interest rate will be like in 1998 up to 12%? You mean this 1-2 years? Or next 10 years?

Increase in interest rate is a sign of economic growth. It is necessary to curb inflation. There has been an increase of money in the market - Covid related payout, EPF withdrawals etc. It is only expected that Bank Negara raise the OPR - maybe another hike expected in the next MPC meeting. But there is no fundamentals to indicate that interest rate would need to be at 12% in next few years. When that happens, inflation should have moved your property price sky high.

This post has been edited by remora: May 12 2022, 03:14 PM