BNM reduced OPR by 25bps from 3.00% to 2.75% on 9 July 2025.

Banks, including RHB, announced reduction in their interest rates on 10-11 July 2025.

By 12 July 2025, when I checked my account, the housing loan interest rate was correctly reflected as 0.25% lower than before.

My repayment is on every 5th of the month. So for my 5 Aug 2025 repayment, I still paid the usual amount since the cycle was still based on the older rate.

However, it shows that my next payment due on 5 Sep 2025 is also still unchanged. Shouldn't it have already been changed by now to reflect the lower interest rate (that has been captured in their system)?

Can anyone share how this works?

This post has been edited by contestchris: Aug 6 2025, 11:19 PM

The bank have up to 90 days to adjust the repayment amount, that's what I read from somewhere.

Edit add source: https://www.nst.com.my/business/economy/202...t-says-abm-bttv

This post has been edited by stormaker: Aug 7 2025, 12:37 AM

depends on bank i guess?
Maybank already updated the instalment amount

But hong leong looks like no update, wonder why

I called HLBB, they haven't implemented yet. They said they will implement later and send notification.

Guess they need some time to update their system

By paying the same amount of repayment at lower interest rate means loan tenure will be shorter.

wow so smart keep dragging to keep their profit
but if FD sure lower down immediately

No, the interest rate is adjusted. Only the repayment amount is not adjusted immediately

For HLBB, I only received the revised repayment after the second opr reduction previously. 🤑

Maybe the reduction is small, so extras, they just offset the principal.

This post has been edited by mini orchard: Aug 7 2025, 06:02 PM

Probably just offset the principal???

Anyway better contact banks for details

but the objective is to reduce the repayment amount
if repayment amount doesn't reduce, technically the rate reduced yet to take effect

You can check the interest calculation. If no reduction in interest, then lodge a report with bnm.

When Bank Negara raised OPR, all banks without hesitation immediately raised installment amount within a month. However, when Bank Negara announces OPR reduction, banks take sweet time to slowly effect new installment in 90 days. Banks need money obviously.

Maybe the banks are doing manual calculations 🤭

Usual case in Malaysia....

Increase very fast but reduce very slow.... They try to delay as long possible....

The reason behind the delay is because the bank wants the borrower to settle the loan in a shorter time i.e. more money goes towards the principal portion.

When opr increase, any delay in increasing the repayment amount will reduce the principal repayment portion.

And is about fund liquidity, more hard cash for the bank.

increase very fast, decrease slow like rua