BLR Management Service in Malaysia
Tips(source from Wikipedia): In Malaysia, changes in the OPR trigger a chain of events that affect Base Lending Rate (BLR), short-term interest rates, fixed deposit rate, foreign exchange rates, long-term interest rates, the amount of money and credit, and, ultimately, a range of economic variables, including employment, output, and prices of goods and services which is the micro and macro factors on the economic. The BLR is usually adjusted at the time in correlation to the adjustments of the OPR which is determine by Bank Negara Malaysia during Monetary Policy Meeting.
There is a Malay saying – “Sediakan paying sebelum hujan”. What it mean is, let us be prepare before things happen. Lets say the OPR is raise after the General Election, it will in-directly affects the BLR rates and all the Home owners that is servicing a loan.
Do you know how much it will affect you if BLR rate is raise by 0.5%? Lets do a simple calculation with a Home loan like say, RM300,000.00 with an effective BLR rate of 5.5%(BLR -1%) and 30 years tenure with a monthly repayment of RM1,704.00. How much do you think the difference will be?
Before increment - BLR @ 5.5%
RM300,000.00 x 5.5%/ 12 = RM1,375.00(your interest payment)
After 0.5% increment - BLR @ 6.0%
RM300,000.00 x 6.0%/ 12 = RM1,500.00(your interest payment)
The Difference:
RM1,500.00 – RM1,375.00 will be RM125.00 extra each month
The difference might not be significant for a month, but try to multiply that with your Tenure. That alone will increase your tenure to more than 20 months(approx. RM35,000.00). And we are just talking about 0.5% increment. What if its 1% or more? Don’t forget that the average BLR rates for Malaysia is 8.7%. Don’t wait until its too late. Act today and Take charge of your own Property. After all, it is the place you and your beloved family live in.
Some people will choose to believe and take no action as they are confident their property will appreciate in the future, and that will settle the issue of any BLR fluctuations. Let me ask you this, who owns the title to your property before you finish paying your Home loan? Yes, it is the bank. Don’t take the Risk. Settle your loan as soon as possible and minimize the risk to the lowest. Nobody will know what will happen tomorrow. Maybe the Property market will crash, or the economy will fall or worst, you met with an accident and hospitalized and temporary left with no income.
Imagine what will happen? Imagine how worry your family will be about you, and about the lovely Home they are living in now might be foreclose by the bank because you can’t afford the Installments.
Don’t let that happens. Let us Help you to manage your Home loan. Beside minimizing your risk, we could also Helps you Reduce your payable Interest and Tenure. Please see the example below to get an idea of how much we could help you Save by using our service:
Using the example above - RM300,000.00 with an effective rate of 5.5% and tenure 30 years.
Before applying our Service:
Your total Interest payable is RM313,440.00.and Tenure = 360 month
After applying our Service:
Your total Interest payable is RM156,720.00.and Tenure = 180 month
Do you see the difference? That’s a 50% reduction from the payable Interest and Tenure.
Which one will you choose? If you ask me, I will say any sound man will choose the latter option. Imagine what you and your family could do with that extra money - College fund for your children or Retirement fund Or a long await family trip?
Contact us today for a Free consultation. We have your best Interest at Heart.
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