Base Rate (BR) Updates and Tips Before Applying Housing Loan. A Must Read!

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Salam guys,

Looks like most of the BR and effective rates for banks in Q1 2015 has been locked for now. Some facts :

1. Maybank has the lowest BR at 3.2% but they dont have the cheapest effective rates.

2. Ambank and PBB has the lowest effective rate, while OCBC is the most expensive, for now.

3. Prior to BR, most banks uses BLR-2.4% as their mortgage rate, which means its effective rate is 4.45%. You can see from the photo (credit to LoanStreet that compiles this) that most banks now has a different effective rate.

4. Under BR, so far on average your loans are more expensive today versus what it was a month ago, where majority of the banks offers effective rates of approx 4.4%-4.5%

Some useful reminders and tips :

1. Always shop around. U can see from the photo here that instead of the old regime of BLR-2.4% where most banks carries the same effective rate, now you get lowest at 4.45% to highest over 5%.

2. Just because a bank has high spread doesnt mean their effective rate is expensive. Maybank’s spread is the highest at 1.35% but their BR rate is the lowest. So ALWAYS, ALWAYS look at effective rate!

3.BR rate rumored to be changed every quarter, so just because a bank is expensive now doesnt mean they’ll be forever expensive. So make sure you shop and ask around for loans.

4. If the loan you plan to apply is reasonably medium to large, say above (RM500,000), ask your banker if there is a special tier for larger loans. Normally if you apply larger loans and your credit record is good, you’ll get preferential rate which is not the published counter rates. So make sure you ASK ^^

Good luck and happy hunting ^^

– Faizul Ridzuan

Reader Comments


  1. Cheis
    April 12, 2016

    Hi there…wanna ask. If two bank offer same effective rate…but one high br with low spread while another low br with high spread…so which one is better?

Comments are closed.

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