The latest benchmark rate (BR) and basic lending rate (BLR) of 19 domestic banks.
The National Bank announced a 25 basis point increase in the overnight policy rate (OPR) in early September, and domestic banks followed the National Bank’s lead and raised their lending rates. The banks raised the base rate (BR) and the basic lending rate (BLR), which will cause borrowers to bear higher monthly installments.
The National Bank will hold a monetary policy meeting on November 3 and will announce whether to adjust the Overnight Policy Rate (OPR) after the meeting.
For a RM500,000 mortgage, an interest rate increase of 0.25% will result in the borrower having to pay about RM70 more per month for the loan. As for a RM700,000 mortgage, the additional monthly payment would be about RM110. This is a heavy pressure for borrowers who are tight on cash.
Borrowers are urged to check with their respective banks on the amount of monthly loan payment after the interest rate hike, so that they can avoid the problem of defaulting on their loan payments.
The banks in the country will adopt SBR to replace BR and BLR from August 2022, but this will only affect new borrowers, while existing borrowers will not be affected in any way.
