It can be difficult to compare the vast array of BLR-pegged financial products on the market today. Standard Chartered’s innovative new home loan, MortgageKLIBOR, gives customers the real truth, along with better rates and more stability.

The robustness of the property sector lately has been accompanied by huge growth in the financial industry. Today, prospective home owners should navigate their way through a variety of lending products offered by banks / institutions which are conventionally pegged to the Base Lending Rate (BLR).

Cutting through the complexity that consumers face when shopping for a home loan, Standard Chartered Bank Malaysia Berhad has launched a revolutionary new product, MortgageKLIBOR, as an innovative response to this need. Once again Standard Chartered makes its mark as a leader in product innovation and delivering a superior customer experience. MortgageKLIBOR is the FIRST conventional home loan offered by a bank that is pegged to the three-month Kuala Lumpur Inter-Bank Offered Rate (KLIBOR) – which is lower than the average market financing rates. Launched alongside the OptiOverdraft standby credit facility, MortgageKLIBOR is available only through Standard Chartered.

Why KLIBOR?

3 things make Standard Chartered’s newly launched MortgageKLIBOR a unique and revolutionary product – transparency, greater savings and rate protection.

Firstly, what you see is what you get from MortgageKLIBOR. MortgageKLIBOR is based on the borrowing and lending of funds between banks and can be checked directly from any major newspaper daily. By pegging to this inter-bank rate, Standard Chartered is revealing its costs and margins, giving consumers a clear, transparent view of interest rates. There are NO other fees or charges, hidden or otherwise.

Secondly, KLIBOR has been consistently lower than BLR (see graph below). For example, BLR had been hovering at 6% from January 2004 to January 2006, at which point it began climbing to 6.75% or maximum at 6.8% (where it is still remaining for the moment). On the other hand, KLIBOR has remained consistently under 4% and has even dipped to below 3%. This translates to greater savings when financing through MortgageKLIBOR.

Finally, Standard Chartered has added an additional security feature of fixing the repayment rate on a 3-month interest rate, rather than on KLIBOR’s daily fluctuations. Standard Chartered sets its 3-month fixed rate by adopting the KLIBOR rate on the last business day of the previous quarter, updated every quarter. This gives customers precious stability.

Taking pride in Malaysian homes

Taking pride in helping Malaysians own homes, Standard Chartered believes in meeting a home owner’s concern in managing the total cost of owning a home. The bank is now offering a high financing margin of up to 89%, with an additional 5% for the Mortgage Reducing Term Assurance (MRTA), an insurance plan that provides full housing protection.

Currently, MortgageKLIBOR is offering KLIBOR + 1% p.a. (for a limited time only). Its fixed repayment rate for KLIBOR from 1 April to 30 June this year is 3.61%. Thus, customers who sign up with MortgageKLIBOR enjoy a rate of 4.61% p.a.

For more information on MortgageKLIBOR, call 1300-880-388 or visit www.standardchartered.com.my or walk into any of our 37 branches nationwide.