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

only economy super hot till pakcik makcik follow goreng stock then only possible to raise 12%

You have to give the loan amount, the interest rate, loan tenure, how many more months/years to pay.

With Excel got formulas to count one for loan amortisation. Last time got some MLM offer BLR management, they surprised pikachu I can calculate almost similar amount to what their their HQ consultants calculated.

Technically, everything under control.

But for example, WW3 is happening, then it will happen.

see who is the FM...that time Anwar was Finance minister. Dr M will not allow this happen again

This old man has no position or authority in current gomen.

This round of OPR hikes is directly influenced by the US Fed with its new hawkish stance. Understand that this is to curb inflation and will directly impact the share market and has impacted crypto. Malaysia has to follow suit as our RM is falling rapidly. This has resulted in inflation as Malaysia currently imports too much. I have a feeling that the rakyat will be feeling the pain. Raise OPR, housing loan all naik but hopefully barang-barang keperluan will be stable. Drop OPR housing loan drop but barang-barang naik.

How will this affect house prices??? For one thing loans will be more expensive making it more difficult to buy which may cause house sellers to lower prices BUT it also means all construction related activities and building materials will rise causing new house prices to go up. So....really dunno lah...to buy sub sale, you will need cash but it will be cheaper. To buy new no need cash upfront but will cost more... Meanwhile EPF accounts are depleting. If we keep money in the bank also we will guarantee lose because inflation is happening. any which way also jialat

Yes, Due to the banking financial problems occurred in 1997. my brother in law bought a new proton saga with 10.5% interest in late 1998 and he managed to paid off the car loan after 12 months with the help of my wife free interest personal loan.

May i ask the month instalment will changed based on OPR floating right, but when will the monthly payment amount will change?

because rumor i hear 3 kind of situation, hope i can get an answer from experts

Let said
loan tenure 35year
loan amount 500K
Interest rate will be 2.8% on Loan Offer (sign)
Current OPR increase 0.25% (total in 2%) (3.05%)
feature 5 year let said OPR is 3% (4.05%)

Monthly instalment LO: RM 1868
Monthly instalment currently : RM 1938
Monthly instalment feature 5y: RM 2228

Rumor 1: At current moment (3.05%) monthly instalment we will keep paying RM1868, but the unpaid balance (RM70) will be add into the principle. In result the loan tenure will be extansion more than 35y if all the unpaid balance accumulated year by year.

Rumor 2: The monthly instalment amount will adjusted everytime based on the OPR Floating. In Result the loan tenure can be settled at 35year, but the amount is keep changing everytime OPR change

Rumor 3: The monthly instalment amount will only change within a period based on current OPR let said every 5 year. Mean, since i only paying the LO approval monthly instalment 1868 for five year, after five year the bank will adjust the monthly instalment i need to pay which is 2228. If this one in result, the loan tenure will be extension also, but not longer than rumor 1.

sorry for poor english, but i hope to get the opinion. thank you

Option 1= No change to installment amount, tenure extended more than 35 years

Option 2= Installment revised, tenure remain 35 years

It’s up to your bank whether they want to revise the installment amount or not. No biggie la, you can always pay more than your installment anytime

Until now still showing my payment amount is the same in online banking portal. Same with in the banking apps. So can I trust it? It’s, are they not have revised the rates already???