Bank malaysia will reduce mortgage loans instalment payments (loan repayment), an exercise that will be completed by the first quarter of this year. Mortgage loans borrowers benefits from lower Base Lending Rate (BLR).

Customers who prefer to retain their loan repayment amounts need to get in touch with their mortgage loan banks. The association of bank malaysia said that the move by all commercial banks to cut instalment amounts follows the request by the Government to help borrowers facing difficult economic times. Loan repayment is one of the plan to help mortgage loans borrower and those are lost carrer in company retrenchmennt.

Lower monthly loan repayments will allow for more disposable income to be in the hands of the public and we reaffirm our member banks’ commitment to continue to be reasonable as well as responsive to the public’s needs. Read more »

MAYBANK announced that its Base Lending Rate (BLR) will be reduced by 55 basis points from 6.5 per cent to 5.95 per cent effective February 3 2009.The revision takes into account the reduction in the floor rate of the one and 12 months fixed deposits by 50 basis points and the reduction in Overnight Policy Rate (OPR) by 75 basis points.

The Base Financing Rate (BFR) of Maybank Islamic Bhd will similarly be revised downwards from 6.5 per cent to 5.95 per cent effective 3 February 2009.

The reduction in Base Lending Late (BLR) is part of ongoing commitment towards the creation of a more supportive monetary environment. Housing loan borrowers will enjoy immediate benefits as the interest rates of all their loans pegged to the Bank’s BLR will be adjusted accordingly. Given the challenging in business environment, the lower cost of funding will be a boon to borrowers and help in sustaining positive economic growth in the country.

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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.
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