BM / CN“Many homebuyers are making smart decisions to buy a new home now, with incredible rates and stamp duty exemption.” said Kinta Properties Sales Manager, Karen Wong. Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 1.75% has helped banks cut the interest rates charged to consumers, making owning a new home even more accessible. The revision of the OPR on July 7, 2020, is the lowest it has been since 2004. What do the changes mean to your home loan and why are the OPR changes important to you? Learn more below. What is OPR and how will it affect your home loan? The Overnight Policy Rate is the interest rate at which a bank lends to another bank, which is determined by BNM. In Malaysia, the average homebuyer takes 35 years to pay off their home loans. Don’t underestimate the difference of a few percent in interest rate can impact your total repayment amount. It can help you save quite an amount by the end of your loan tenure. Let’s see how interest revisions impact your loan/ financing repayment.
Existing Loan If you have ongoing loan installments, take note on whether there is any adjustment on your monthly installment. Generally, after the OPR adjustment, the bank will follow the interest rate. If you do not receive a notification within three or four months contact your banker and get confirmation on changes on BR rates and monthly installments. Is this the best time to own a new home? With interest rates being lowered even further thanks to the OPR cuts, this might just be the best time for you to purchase a new home. If you’re looking to buy a home with Kinta Properties, you’ll benefit even more with our unrivalled care programme. Our K4U programme offers a top to toe home buying solution, from financing to moving into your dream home. Owning a new home doesn’t have to be scary. With the right financial support, your dream home can be yours. Learn more about; How to apply for a home loan Stamp Duty Exemptions for first time home buyers K4U The list below is Base Rates and Effective Lending Rates of Financial Institutions as at 7 July 2020, released by BNM.