Do you know how much of the latest mortgage rate for our home loan packages? As we known, banks keep on revising the mortgage rate from time to time. Therefore, we cannot tell the exact mortgage rate to someone. Based on current bank housing loan offer, you can get the mortgage rate as low as Base Lending Rate (BLR) -2.3%. Noted: The current BLR rate is 6.3%.
What’s The Current Home Loan Packages?
Different bank will offer different home loan packages. From what I can see is you need to have lock-in period with the conventional packages whereas Islamic home loan packages mostly will not have lock-in period.
In general, if you take the housing loan which in between RM200k and RM300k then mostly you can enjoy BLR – 2.1 for first 3 years and there’s 3 years of lock in period. After 3rd year onwards, you will need to pay more interest for your home loan as it will be BLR – 1.9.
This happen same to those who’re taking housing loan more than RM300k, then can get lower mortgage rate which could be BLR – 2.3 but they need to have 5 years of lock in period.
What is Lock in Period?
Do you know what is lock-in period? Lock-in period is the period that you cannot fully settle the loan. Or else you will get penalty, 1-3% depend on bank.
For the lock-in period, it will be a concern for property investor. Do you know why? Let say if you intend to sell the property less than 3 years period, then you might need to pay some exit penalty fees on loan amount which about 3%. So, what I m thinking now is if you buy a under construction property which takes around 3 years to complete and you plan to sell it right after completion, then this 3 years lock-in package might work for you.