Shorter lock in is only beneficial for property investors who buy and sell properties fast. Most of the time u woulndt even think of refinancing within the first few years as the difference is negligible. But i got mine at 3 yrs lock in last yr.

ure 24 yrs old and ure earning min RM7,700? So whts your average earnings? What kind of job is that?

I understand the MRTA is merely to protect the bank and not so much the borrower if the property is in 1 person's name. Meaning if i buy a property and its in my name only and i dont take a MRTA and if i die, the bank cannot come after my wife or dependants. But if i take the MRTA i have to pay the extra few thousand premium and then if i die the MRTA pays off the remaining loan amount to the bank.

Can someone clarify?

You didnt answer my question. I was told that if i buy a property and its in my name only and i dont take a MRTA and if i die, the bank cannot come after my wife or dependants. This is what i need clarification for.

Whats your rate without MRTA and with OD facility?

What is the remaining amount is much less than the property value?

I have a friend who is purchasing a condo at Jalan Ipoh for RM 185K. Whats the best loan deal he can get? OCBC?

U managed to get BLR -2.2% from UOB for less than 200K loan? Thats good. Can anybody else confirm this?

Hi Chris, i have a friend who is interested in the Vistana Serviced Apartments. Its a developer unit costing RM 320K. Whats the best rate u think he can get? Ive given him your number as well. He is a Malaysian doctor currently working in Singapore.

This is for fixed rate la. Now BLR is still considered low. So no point taking a fixed rate loan for such a high value. U can always change to a fixed rate if the BLR goes up too high in a few years thru refinancing. Till then its a waste i think.

If u have the money why bother buying properties in non prime areas? Focus on prime areas and ull see really good value appreciation in a few years.

Price war for housing loans has begun


KUALA LUMPUR: There may be a new round of price war among banks for consumer loans, with the new mortgage rate going down to as low as base lending rate (BLR) -2.3%. The current BLR rate is 6.3%.

Some analysts said this comes as a surprise to the market after a mutual understanding was reached earlier to set a minimum rate of BLR-1.9%.

The new mortgage rate is now down to BLR-2.2% since end-July and some banks have started offering BLR-2.3%.

A home loan officer from CIMB Bank Bhd told StarBiz that housing loans have been revised downwards.

“Previously we were offering BLR-1.9%. Now, we are revising the rate to BLR-2.1%. We had been losing some market share to foreign banks and decided to join in the price war,” he said.

The BLR is a minimum interest rate calculated by banking institutions based on a formula which takes into account the institutions’ cost of funds and other administrative costs. The BLR is measured against the overnight policy rate (OPR). This year, Bank Negara has raised the OPR by 75 basis points in three rounds of rate hikes points to 2.75%.

This means that the BLR also goes up by 75 basis points to 6.3% currently. The BLR is one of the major components used by banks to determine the pricing of home loans.

StarBiz called up the customer service departments of some of the major banks for verification. While rates change depending on the mortgage taken, some banks have become very aggressive in their rates.

It appears that CIMB’s rate is now BLR-2.1%, Hong Leong Bank, OCBC Bank and UOB Bank is BLR-2.3%.

While the website of Malayan Banking Bhd shows that it is offering BLR-1.8%, one of its home loans officers contacted said it could offer up to BLR-2.2% depending on the loan taken.

Chris,
Can u check and tell me what seems to be the problem with this condo: Pelangi Indah, Jalan Ipoh. Seems that most banks not providing loans for this condo. Its already 15 yrs old and a friend of mine is trying to purchase from the 1st owner.

U can nego higher with Maybank. Depends on who ure talking to. If u talk to the small agents then chances are limited. Go higher up to the Managerial level.

Yes im sure they can. It all depends on the value of your loan. A difference of 0.1% is nothing for a bank when they making much more from you. So yes i think you can nego to BLR - 2.3%. Last year Maybank was offering BLR - 2.1% but i managed to nego it to -2.3% and with reduction in the lock in period as well. No MRTA and no property evaluation too.

Yes another friend of mine got BLR-2.2% for a 180K property as well. Dont know where this BLR-1.9% came from.

U will get the document and the offer is valid for 7-14 days before the offer becomes null & void.

Very good article:

http://www.starproperty.my/PropertyGuide/Finance/6537/0/0

Why include MRTA? That is to benefit the bank while making u think that you need to the MRTA. Save your money and exclude the MRTA.

U should not have bought there. The prices there are inflated prices which will drop like crazy when the property bubble bursts. Always buy at prime and mature areas. Dont be influenced by these property developers into paying more for a property that will not appreciate.