Latest BLR Rate For Malaysia Banks May 2011

Posted by Kris | Sunday, May 15, 2011 | | 0 comments »

BLR Rates For Malaysian Banks May 2011

BLR has now reach 6.6% for most local Malaysian banks as indicated at above table. The only banks still sticking to the 6.3% rate is foreign banks such as Bank of America, JP Morgan which are probably trying to penetrate the local market with lower rates.

The best rates are from "The Royal Bank of Scotland Berhad" which is 6% .I don't know what total package plans they do offer for customers.

Of course, BLR rates is not the only consideration to be evaluated when considering which loan to take up. 

The things to be considered:

1. The effective interest rate : BLR- X% - The lower the better
2. Lock-in period. The shorter the better, in case you want to sell
3. % of penalty: if you sell your property within the lock-in-period (There are ways to avoid this penalty)
4. Flexi-account. So that you can dump in your extra cash into the account to reduce the interest, while keeping your options of withdrawing this money when needed. Hence, it is more FLEXIBLE.
5. Duration of the loan: typically, the longer the better especially when you are young so that you can leverage debt to your advantage.

Lookout for the fine-print for certain housing loans.. Yes, i know of a local bank that has a fine print for late payments. Beware! Interest rates can bite you back.