That’s true. There is 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%.
This is a very good news to property investors because they can obtain cheaper loan to buy more properties. With the news that Malaysia properties are booming, there are more reason to buy properties especially medium to high end landed properties.
There was a lots of interest in Malaysia properties priced below RM2mil and less movement among the higher end homes. Many foreigners especially from Singapore keen to invest in Malaysia due to affordability.
The new mortgage rate is now down to as low as BLR-2.2% since end-July.
After a quick check, below are the rates offered by some of banks. I believe other banks also have the same competative rate.
Bank Islam – BFR-2.2%.
CIMB Bank – BLR-2.1%
Hong Leong Bank – BLR-2.3%
Maybank – BLR-2.2%
OCBC Bank – BLR-2.3%
RHB Bank – BLR-2.2%.
UOB Bank – BLR-2.3%.
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%.
The price war has also spilled over to credit cards, with offers to absorb the government annual service tax. This was previously borne by card holders.