Is it time to refinance your home loan?

[fiscalwise]

Studylady, you are well versed with property news and updates. It is always good to know what opportunities are knocking at your doors. Grab them before they fly away.

adrian Wrote:My home loan previously is BLR% + 0.28%,that's my fourth year installment.
But after that i applied to decrease my BLR% and at last they only offer me BLR -1.8%.
In this case,shut i apply again to decrease my BLR%?

Adrian, you could try to apply to other banks and get their offer. There is no harm. We usually will help our customers to submit to minimum 3 banks at one time. If they get lucky, the bank may offer them a good deal.

AOC_2009 Wrote:Do you know Public Bank Bhd offer house loan tenure up to 40 years which other banks only 30 years maximun? I saved almost about RM900 monthly instalment and yet got cash of RM88k from the difference in refinancing.

Good to hear that.

ronan4896 Wrote:my is:
BLR - 2.30%
BLR - 1.80%
BLR - 1.60%
BLR - 1.55%

Ronan... you sounds like you're an investor. Minus 2.3% is a good rate. Even if BLR rebound to 7%, your loan will still be at low 4.7%..
Bravo... Keep up the good work.

Our Financial Calculators - Refinancing
Kimmy has shown you how the Refinancing Calculator could help in knowing how much you could save. Use it to help increase your Financial IQ on home loans. Many of our customers have also found their answers there.


Different banks offer different BLR.
To check the latest BLR by banks, look at this webpage --> Current and Historical BLR Rates in Malaysia

[ronan4896]

aiya fiscalwise, actually i am just lucky. When i bought this house was last year 2008, just the timing so match with good offer at 2.30% only.
Lucky, lucky.

[iSakai]

Is there any other loan option besides banks?

[andrian]

(04-23-2009 07:51 AM)ronan4896 Wrote:  my is:
BLR - 2.30%
BLR - 1.80%
BLR - 1.60%
BLR - 1.55%

ronan,are u mean year 1 to year 4?

[ronan4896]

(04-23-2009 07:58 PM)andrian Wrote:  

(04-23-2009 07:51 AM)ronan4896 Wrote:  my is:
BLR - 2.30% (1st year)
BLR - 1.80% (2nd ~ 3rd year)
BLR - 1.60% (4th ~ 5th year)
BLR - 1.55% (Subsequent year)

ronan,are u mean year 1 to year 4?

[Jason]

Guy....

Mine is based on fixed rate.... 6.05% all tenure...
Mean until 25th year also will be 6.05%.

Do you think i need to re-finance it?

[studylady]

jason u borrow at fixed rate..I advise u change to variable ..mean change to BLR (minus)..Now BLR is 5.55% for all banks, so if u choose to BLR, u can save alot maybe arround 2% per year..Most of bank will offer BLR- 1.8%, 2% ,2.3%. That means ur rate become BLR - 2% (5.55% - 2% = 3.55% )..then u not need suffer for the high interest rate, can save alot. But it also depend to ur contract, u go check ur contract term & condition see whether bank have lock u to change it or not. 6% above alr consider very high rate.

[fiscalwise]

(04-23-2009 07:41 PM)iSakai Wrote:  Is there any other loan option besides banks?

Housing loan is the lowest interest at this moment whereby only BLR-2.4% = 3.15%. U can always check on the bank negara website for some finance institutes whereby hardly seen in the market. Such as ERF Sdn. Bhd.,
Participation of SME Program, MBSB and other like insurance company AIA, ING and MAA

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(04-23-2009 09:51 PM)Jason Wrote:  Guy....

Mine is based on fixed rate.... 6.05% all tenure...
Mean until 25th year also will be 6.05%.

Do you think i need to re-finance it?

Before you think of refinance, you have to ask yourself...
1) Are you able to take the risk when the BLR is up?

If your answer is YES then it is higher recommended u do the refinance bcox the difference interest is up to 6.05% - 3.5% = 2.95%.. is very high...

[nicemamak]

There are pros and cons for float and fix rate.

Personally I prefer floating rate.

Conservative people may need to go for fix rate as the monthly payment remains the same regardless the economic condition

I think we can refinance the loan if it was obtained about 5 years ago