Base Rate vs BLR in Malaysia: How Does BR Work?

Generic Landed House
Effective January 2, 2015, the Base Lending Rate (BLR) structure was replaced with a new Base Rate (BR) system. Under BR, which will now serve as the main reference rate for new retail floating rate loans, banks in Malaysia can determine their interest rate based on a formula set by the central bank.

Under the previous BLR, the rate was set by Bank Negara Malaysia (BNM) based on how much it costs to lend money to other financial institutions. Meanwhile, the cost to borrow money was determined by the Overnight Policy Rate (OPR) set by central bank.

With the new BR, interest rates are determined by the banks’ benchmark cost of funds and Statutory Reserve Requirement (SRR). Other components of loan pricing such as borrower credit risk, liquidity risk premium, operating costs and profit margin will be reflected in a spread in the new BR framework.

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BNM decided to raise the OPR by 25 basis point, so…?

Yesterday morning I sent out an email (shown at the below) to my JefferyLam.com Community, and I got some immediate feedback and reply from them like:-

Positive people with positive mind. Busy n hectic life if always for smart n business minded proffesional like you. You hv your clear mission n objective in mind , so nothing will stop you from achieving your goal. Your parents will be very proud of you. Keep up your momentum n success is just the matter of time.

Very interesting of your encountering stories in a Monday morning

Boss, i enjoy reading your story.

and etc…..

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New Rules For Home Loans July 2013

Bank Negara Malaysia announces today, the implementation of a set of measures aimed at avoiding excessive household indebtedness and to reinforce responsible lending practices by key credit providers. These measures, which take effect immediately, complements the earlier measures introduced since 2010 to promote a sound and sustainable household sector.

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Have you check your CCRIS Report recently?

I was always thinking to drop by Bank Negara Malaysia to check on my own CCRIS. Due to the traffic jam and other reasons, this matter keep on delaying…

Finally, I paid them a visit last week, after my appointment at KL City.

To my surprise, it only took me about 1 minute to get the report printed from the kiosk!! SO QUICK!!

The Kiosk is just located on the Ground Floor.

All you need to bring along is only a piece of your own Identity Card (IC) and your thumb (for thumb print verification).

That’s it! Simple?!

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A Quick Guide to Getting the Right Home Loan Package

Just like buying a home, getting the right home loan is serious business.  Sign up for the right one, and you’ll be benefiting from your decision many years down the road.  Get one that doesn’t suit your needs, and you just might find yourself cursing your bank every month end when it’s time to service your instalment.

For those who need help in getting a home loan that’s just right for you, here’s a quick guide on what you can do:

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