Just heard from three different sources that Bank Negara Malaysia will raise the Base Lending Rate (BLR) by 75 basis points to 7.5% in the first week of July. Some say July 1st, 2008 but I think it could be after the next BNM meeting on July 5th, 2008. So on top of the rise in fuel and food prices, we will also have to look forward to a significant rise in interest rates as well. Those who have just signed up for BLR-1% to BLR-2% loans should not be greatly inconvenienced but if you are on a BLR+x% loan, you should definitely contact your loan officer and ask for an adjustment. Yes, it is definitely POSSIBLE to adjust your current loan's interest rate without refinancing. Just ask your loan officer to adjust your loan rates because the whole industry have already moved to BLR-2% with EONBank offering BLR-2.2%. You can make an even stronger case if your own bank is offering such low rates as well. In my case, I had no problem switching from a BLR+0.25% loan to a BLR-1% with UOB. They only required that I extend the lock-in period from 5 years to 6 years and that I restart the loan period but what the heck, I'm saving 1.25% per annum! So, you can do this too. Don't be afraid to push your loan officer on it. If you have to, threaten to refinance your loan. Tell them other banks are telling you that they will pay for the fine that you will occur if you refinance before the lock-in period is over. On the plus side, I also heard rumours that the government will announce a drop in car prices, probably through a reduction in excise duties, at around the same time. This will mean a drop in foreign car prices with no difference for local makes. Or so the grapevine claims... If you want to buy a LOCAL car, you better get your car loan approved by the end of the month. Otherwise, you will get hit by the higher interest rate next month. But if you are looking to buy a foreign make, then wait until the reduced excise duty is announced. However, the reduction in foreign car prices will be balanced out by the higher interest rate so I'm not really sure if we actually benefit at the end of the day. Ultimately, the increase in BLR will affect those who need loans to buy cars or property but the rich who can afford to pay cash will not be affected one bit.
Just heard from two other sources, both property agents, that they too heard that the banks will increase their interest rates next month. So, I guess this is pretty solid info... They are not sure about the quantum though.
Rofl... you say they up theirs interest rates... i don't want to be in US who is the crysis because the IRAK WAR.... Too much debts
