Bank Negara Overnight Policy rate (OPR) being reduced to 2.50% (OPR decreasing in Jan’09), most of the banks adjusted the fixed deposit rate from 2.50% to 3.0% and Base Lending Rate (BLR). Those bank mortgage loan borrower with floating rate type have chance to reduce the bank mortgage rate. It’s one of the benefits on property investment.

However, it seems that few of the banks seems still not announce the changing of Base Lending Rate (BLR). Anyway, need to confirm with the bank whether the showed bank mortgage rate is not yet adjusted to reflect the changes of the OPR.

Referring to Malaysia Bank mortgage Loan BLR history, base lending rate hit lower point since year 1989. And below table show a list of Base Lending rate in Bank Malaysia and the effective date. (Note:some of the banks not yet announce the latest BLR). Read more »

Malaysia Bank mortgage loan type floating rate is direct relationship to Base Lending Rate (BLR). BLR take calculation into Overnight Policy Rate (OPR).

Base Lending Rate (BLR)
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. This is defined by central bank of the countries.

Read more »

Bank Negara Malaysia announced at 21 Jan’09, Overnight Policy Rate (OPR) would decrease again 75 points. That means OPR decrease 2.5 per cent. In Nov 2008, OPR was decrease 25 points; it’s 3.25 per cent. From adjustment in OPR, estimate Base Lending Rate (BLR) will decrease to 5.90 per cent instead 6.50 per cent at this moment. Check on Malaysia Base Lending Rate History for the past 20 years.

Malaysia’s central bank cut its benchmark interest rate for a second straight meeting as easing inflation allowed it to focus on sustaining economic growth amid the deepening global recession.

Bank Negara Malaysia lowered its overnight policy rate by three-quarters of a percentage point to 2.5 per cent. The size of the reduction was larger than all predictions in a Bloomberg News survey of 19 economists, where seven expected a quarter-point cut and the rest forecast the rate to be lowered by 50 basis points.

Malaysia’s 2009 growth will probably miss the government’s 3.5 per cent forecast, adding pressure on policy makers to boost spending and cut borrowing costs, the Malaysian Institute of Economic Research predicts. Malaysia Finance Minister is planning a second stimulus package to add to a RM7 billion (US$2 billion) plan unveiled in November.
Read more »