CIMB modifies the interest rate for past-due mortgages which takes effect on November 18
CIMB Housing Loaners Take Notice! If you miss mortgage payments for longer than 90 days, an extra 4% in interest will be charged.
The new default interest structure will go into effect on November 18, 2022, and borrowers who fail on their mortgages for more than 90 days will have to pay an additional 4% interest, according to CIMB Bank’s news release.
The bank won’t charge the borrower any extra interest during a 0 to 60-day period of default on the mortgage. The bank will tack on an extra 2% interest fee if the borrower is in arrears for 61 to 90 days. Borrowers will be assessed an additional 4% interest fee if they are in default on their mortgage for 91 days or more.
For instance, if the borrower’s initial mortgage interest rate was 4.50% per annum, their new rate would be 6.50% per annum after adding 2% interest. 8.50% p.a. if the debt is overdue by 91 days.
Before banks increase mortgage rates, borrowers will be notified via mail seven days in advance. The addresses provided by borrowers should be current and correct, and borrowers can amend their addresses by going to the closest CIMB branch.
The mortgage interest rate will return to the original interest rate the next day once the borrower has paid off the default mortgage. The worst-case scenario is that the bank will turn to legal proceedings to auction the home if borrowers don’t pay their mortgage arrears.
