Dear paulvandyk,

BLR, Base Lending Rate (BLR) is defined as 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, whereby, the derived rate will served as a base of interest rate charged by the banks in their various loans. Effective from mid of July, all of the banks which operate in M'sia have their BLR at 6.3% (http://www.bankinginfo.com.my/04_help_and_advice/0401_useful_tools/comparative_tables/pop_up/base_lending_rates.php). For flexi rate homeloan, the rate will be quoted at BLR -/+ X%, in which the X% will be solely managed by the banks. As for now, the X% quote is within the range of 1.4~2.3% depending on the features of the loan packages and the requirement of clients, precisely, the p.a. interest rate will range from 4% to 4.9%.

The banks won't offer a 100% loan for their clients in regardless how good profile you can be. Sometimes, you might come across some 100% financed instances. These are not 100% loan which granted by the banks but instead of some parties work together, marked up the price of a house (in fact it does not worth that much), get a greater loan amount for financing to cover the 100% of purchase. Please bear in mind that such practice is against our rule and regulation. Customers are highly not advice to be part of this arrangement. Consequences are unbearable.

Thanks.

Regards,

Chris, Looi
Lead Mortgage Consultant
Home Save, Virtual Mortgage Consultancy
6 012 6058817

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