As per topic, can you settle the monthly repayment if BLR increase to 12%?

Example 1
Property price = RM 100k
Loan amount = RM 90k (Borrow 90% out of the property price)
Years Tenure = 30 years
If BLR = 6.75%, the monthly repayment is RM 583.74
If BLR = 12%, the monthly repayment is RM 925.75

Example 2
Property price = RM 200k
Loan amount = RM 180k (Borrow 90% out of the property price)
Years Tenure = 30 years
If BLR = 6.75%, the monthly repayment is RM 1,167.48
If BLR = 12%, the monthly repayment is RM 1,851.50

Example 3
Property price = RM 300k
Loan amount = RM 270k (Borrow 90% out of the property price)
Years Tenure = 30 years
If BLR = 6.75%, the monthly repayment is RM 1,751.21
If BLR = 12%, the monthly repayment is RM 2,777.25

Example 4
Property price = RM 400k
Loan amount = RM 360k (Borrow 90% out of the property price)
Years Tenure = 30 years
If BLR = 6.75%, the monthly repayment is RM 2,334.95
If BLR = 12%, the monthly repayment is RM 3,703.01

Example 5
Property price = RM 500k
Loan amount = RM 450k (Borrow 90% out of the property price)
Years Tenure = 30 years
If BLR = 6.75%, the monthly repayment is RM 2,918.69
If BLR = 12%, the monthly repayment is RM 4,628.76

You may refer to the calculation from fiscal-wisewebsite

This post has been edited by arthurlwf: Jul 14 2008, 03:18 AM

don't you think this should be in kopitiam?

frankly speaking, if the blr is 12%, i can assure you that means msia economy is worse than 97. with that said, a lot ppl will be committing suicide.

and for me, i shall invest all my money into FD that will roughly yields me 10%/pa

if the blr hits this high, i think i will pay down all my loans 1st before thinking of any FDs

Bank Negara won't let this happen at the moment

mm i need cash flow, so paying everything down might not a too good option, a mix of loan and cash is good if done correctly unless you have serious debts to handle.

if you have the capability to pay all at once, am sure you have loads of cash available, of which the hike of BLR might not affect you so much as you have cash to yield interest, which actually offset the % of hike theoretically.

the hike of interest of normally affect ppl who live with minimal savings and most of the salary is contributed to loan repayment. but yes, im sure everyone is affected.

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Added on July 14, 2008, 8:53 amwell, its not up to BN if the economy really suck that bad..

you need to attract oversea money into the country, else your currency would worth nothing, just like indonesia.



This post has been edited by wheimeng: Jul 14 2008, 08:53 AM

I thought the FD interest rate is only 3.7% p.a? Do you mean the FD interest rate will go up when the BLR is going up? 10% p.a..... Are you serious?

@agape_ian,
If BLR increases, FD rate will also automatically increase. It might not go up to 10% PA but back in the 97s, FD rate did hit 10% PA; that was due to high BLR + BNM also wanted to encourage 'savings' hence the rates then were all-time high.

the last time BLR hit 12% n up , it only lasted few months, goverment won't allow it to be at all time 12% , it will kill the economy, this is when the reserve fund comes in use.

@tzeyin,
That is right If FDs can give us 10% PA I'll put what I haf in it too *grins*

but it comes with risk...

hahaha.. but yeah... 10%/pa guaranteed, man, dump it all in!

All,

1) If you REALLY worry about this, get a loan where the tenure increases (more monthly payment ) instead of LARGER monthly payment when BLR goes up.

2) What makes you think it will not be worse than 97/98??

3) What makes you think Malaysian economy will not get killed this time??

For (2) and (3), the signs are all around us.

Dreamer

those were the days la with 10% pa FD rates... remains a dream...not sure will reach that rate again...but if FD rate reach that high...home loan borrower also kena until mati katak la...haha....

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Added on July 14, 2008, 7:40 pmwhat are the signs you are talking about?

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Added on July 14, 2008, 7:41 pmin my personal opinion, i think it's better to assume you can cover 2x your loan repayment if BLR suddenly shoots up...better to be safe than sorry...

but that's my style...some ppl might be ok to take higher risk...

This post has been edited by kevyeoh: Jul 14 2008, 07:41 PM

@kevyeoh,
It's really not a good sign if FD rates go up to 10% PA. It might be good for the few people who's got cash at hand but overall it means we're doomed *gulp*

Yes the signs are all around us; US is oredi suffering from recession

The problem is whether the government have any more reserve fund to rescue the economy...

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Added on July 15, 2008, 12:19 amDon't you think this topic relates to housing loan finances?

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Added on July 15, 2008, 12:25 amAgree with your point 1.

As for point 2 & 3, mind to share with us the reason you think its possible to be worse than 97/98 and Malaysia economy to be killed...
Unless you are referring to Malaysia's depleting reserve fund which was due to fund wastage done by the government.

This post has been edited by arthurlwf: Jul 15 2008, 12:25 AM

BLR up = inflation up
inflation up= economy down
economy down = malaysia die

even BLR will be raised also just for certain period only.. but i think also wont be raised til 12% gua?

In economic term, there is a life cycle which means what goes up will come down. And vice-versa.
This does not indicate that the economy will die.

The economy will die if what goes down and doesn't come up...
Or took very very long time to come up...

This post has been edited by arthurlwf: Jul 15 2008, 12:32 AM

Based on a recent survey on purchased Propery price, the mean is from RM 151k till 350 k.



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It had happen twice in the past (30 Nov 1984 & 30 June 1998), what makes you to think it won't happen again?

Below is the proof



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If BLR up to 12%, a lot of business will bankrupt and close shop because already can't afford to cover their business loan which used BLR as interest calculation.

Example 2
Property price = RM 200k
Loan amount = RM 180k (Borrow 90% out of the property price)
Years Tenure = 30 years
If BLR = 6.75%, the monthly repayment is RM 1,167.48
If BLR = 12%, the monthly repayment is RM 1,851.50

i loan up 216k to buy house now..dun scared me lor...