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No interest rate when buying house?? TRUE OR NOT?

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No interest rate when buying house?? TRUE OR NOT?

Postby bazaoyu » Tue Mar 17, 2015 4:11 pm

I heard from fren tat if I need to buy a house now, I don have to pay much for interest rate.. Is that true? He said that I only have to pay 0.35% for effective rates bcos BLR has been replaced by BR.. He get to knw this when he went to withdraw money at HLB from a brochure.
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Re: No interest rate when buying house?? TRUE OR NOT?

Postby alexasusu » Tue Mar 17, 2015 4:23 pm

i dont believe this because it doesnt makes sense when u buy a house but do not need to pay to the banks
PLUSSSSS GST is gonna be implemented soon soooo....... how on earth the interest rate can decrease
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Re: No interest rate when buying house?? TRUE OR NOT?

Postby Kristan » Tue Mar 17, 2015 4:52 pm

bazaoyu wrote:I heard from fren tat if I need to buy a house now, I don have to pay much for interest rate.. Is that true? He said that I only have to pay 0.35% for effective rates bcos BLR has been replaced by BR.. He get to knw this when he went to withdraw money at HLB from a brochure.


How did u find out the interest rate??? I think there's smth that ur friend didnt understand well, the info he gave is not accurate. I asked my friend who is working in Hong Leong Bank and he said that ur friend might got confused with the real effective rates which is at 4.80%. Maybe your friend thought the rates is 0.35% when he calculated the effective rates deducted the old policy BLR which is 4.80% minus 4.45%.

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Re: No interest rate when buying house?? TRUE OR NOT?

Postby FHBH » Wed Mar 18, 2015 12:09 am

Progress payment means the installment initially is very small due to low draw down of the loan. But it will hit the maximum after Top or Vp.

New BR policy seems to be jacking up interest rate and introducing slight uncertainty into the installment due re-pegging every few months.
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Re: No interest rate when buying house?? TRUE OR NOT?

Postby alexasusu » Wed Mar 18, 2015 10:56 am

Kristan wrote:
bazaoyu wrote:I heard from fren tat if I need to buy a house now, I don have to pay much for interest rate.. Is that true? He said that I only have to pay 0.35% for effective rates bcos BLR has been replaced by BR.. He get to knw this when he went to withdraw money at HLB from a brochure.


How did u find out the interest rate??? I think there's smth that ur friend didnt understand well, the info he gave is not accurate. I asked my friend who is working in Hong Leong Bank and he said that ur friend might got confused with the real effective rates which is at 4.80%. Maybe your friend thought the rates is 0.35% when he calculated the effective rates deducted the old policy BLR which is 4.80% minus 4.45%.

Image


I thought I will have to pay more with BR to buy a house... I saw the effective rates for BR was so high if compared to BLR rates.
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Re: No interest rate when buying house?? TRUE OR NOT?

Postby bazaoyu » Wed Mar 18, 2015 11:09 am

means if we buy a house we need to pay more for the interest la
what will happen if the gst affects the spread rates how big the difference will be?
does this mean the effective rates will increase as well
:geek: :geek: :geek:
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Re: No interest rate when buying house?? TRUE OR NOT?

Postby FHBH » Wed Mar 18, 2015 1:10 pm

If the cost of operation goes up, then the spread at BR may also increase. BLR may not stay low forever too. This year the movement should not be large as Malaysia's revised growth rate is lower and sharply higher interest rate will cut down on growth further. Hopefully I'm right.
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Re: No interest rate when buying house?? TRUE OR NOT?

Postby Kristan » Thu Mar 19, 2015 9:45 am

bazaoyu wrote:means if we buy a house we need to pay more for the interest la
what will happen if the gst affects the spread rates how big the difference will be?
does this mean the effective rates will increase as well
:geek: :geek: :geek:


U dont have to worry bout it, bcos the spread rates will be fixed wont be affected by GST at all. Spread rate is included in the bank's cost like operation, sales, service and risk, this will be fixed throughout even when BR fluctuates according to the market. My friend whatsapp me this pic:

Image
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Re: No interest rate when buying house?? TRUE OR NOT?

Postby FHBH » Thu Mar 19, 2015 1:42 pm

Whether the spread is locked depends on the contract. In Singapore, the spread changes according to the contract if you choose floating rates. But it is generally "locked" for that year and it may switch to a new "lock" next year. So the later is your contract, the more expensive the spread could get as businesses price in the GST.
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Re: No interest rate when buying house?? TRUE OR NOT?

Postby Manny » Fri Mar 20, 2015 2:44 pm

I think better do research before talk about it.. We might be making rumors if this info is not being confirmed yet lo... I've read about the HLB website and din saw anything about the 0.35% effective rates.. haha. Check this out : https://www.hlb.com.my/main/info-centre ... /loans-pds
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Re: No interest rate when buying house?? TRUE OR NOT?

Postby bazaoyu » Wed Mar 25, 2015 4:44 pm

FHBH wrote:Progress payment means the installment initially is very small due to low draw down of the loan. But it will hit the maximum after Top or Vp.

New BR policy seems to be jacking up interest rate and introducing slight uncertainty into the installment due re-pegging every few months.


yes, you right about this.. But, the important thing is.. the Base Rate are determined by the Bank Negara’s benchmark while the interest rate was set by the banks.. So it depends to individual to choose the best plan for them.. This like competition between banks.. About the re-pegging, it’s all depends to economy situation which if the country’s economy going higher, the rate for your loan will decrease to minimum level.. And it’s vice versa if country’s economy is bad..
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