*This article was updated on 20 May 2022.
Banks in Malaysia are revising their base rate (BR) and base lending rate (BLR) upward, following the Overnight Policy Rate (OPR) hike in May 2022. Read on to find out about their latest interest rates.
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A change in the Overnight Policy Rate (OPR) like the recent OPR hike on 11 May 2022 will trigger a chain of events which affects various borrowing rates being offered by banks to consumers including short-term interest rates, fixed deposit rates as well as the base rate (BR) and base lending rate (BLR).
Hence an OPR hike usually means a higher cost of borrowing for banks and financial institutions and thus, home loans will become expensive for consumers whereas an OPR cut would result in the opposite – a lower cost of borrowing.
We have explained all you need to know about the BR and BLR in the article below. Find out how these figures affect your home loan and how you can better prepare yourself before taking up a mortgage.
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According to Bank Negara Malaysia (BNM)’s Reference Rate framework, in respect of housing loans or financing products priced against the base rate, banks and financial institutions are supposed to disclose an indicative effective lending rate (ELR) for a standard housing loan or home financing product for consumers at all branches and websites.
Indicative ELR refers to the indicative annual ELR for a standard 30-year housing loan/home financing product with a financing amount of RM350,000 for 30 years and has no lock-in period.
The list below is the most recent one updated by iProperty Malaysia with the latest information released by the respective bank as of 20 May 2022 and illustrates the respective banks’ base rate, base lending rate and indicative effective lending rate.
| Financial Institution | Base Rate (%) | Base Lending Rate (%) |
Indicative Effective Lending Rate (%) |
|---|---|---|---|
| Affin Bank | 2.95 | 5.81 | TBA |
| Alliance Bank | 2.82 | 5.67 | TBA |
| AmBank | 2.85 | 5.70 | TBA |
| Bangkok Bank Berhad* | 3.22 | 5.87 | 4.42 |
| Bank of China (Malaysia) Berhad* | 2.55 | 5.35 | 3.55 |
| CIMB Bank Berhad | 3.00 | 5.85 | TBA |
| Citibank Berhad | 2.65 | 5.80 | TBA |
| Hong Leong Bank Malaysia Berhad | 2.88 | 5.89 | TBA |
| HSBC Bank Malaysia Berhad* | 2.39 | 5.49 | 3.50 |
| Industrial and Commercial Bank of China (Malaysia) Berhad* | 2.52 | 5.45 | 3.47 |
| Malayan Banking Berhad | 2.00 | 5.65 | TBA |
| OCBC Bank (Malaysia) Berhad | 2.83 | 5.76 | TBA |
| Public Bank Berhad | 2.53 | 5.72 | TBA |
| RHB Bank Berhad | 2.75 | 5.70 | TBA |
| Standard Chartered Bank Malaysia Berhad | 2.53 | 5.70 | TBA |
| United Overseas Bank (Malaysia) Bhd. | 2.86 | 5.82 | TBA |
*Note: Figure announced by Bank Negara Malaysia as of 6 August 2020.
Source: Bank Negara Malaysia (as of 6 August 2020), news, and respective bank’s announcement.
Meanwhile, here are the latest rates for Islamic home loans / financing- do note that base financing rate (BFR) is the BLR’s equivalent for Islamic loan products.
| Financial Institution | Base Rate (%) | Base Lending Rate (%) |
Indicative Effective Lending Rate (%) |
|---|---|---|---|
| Affin Islamic Bank Berhad* | 2.70 | 5.56 | 3.30 |
| Al Rajhi Banking & Investment Corporation (Malaysia) Berhad* | 2.85 | 5.75 | 4.20 |
| Alliance Islamic Bank Berhad* | 2.57 | 5.42 | 3.11 |
| AmBank Islamic Berhad* | 2.60 | 5.45 | 3.25 |
| Bank Islam Malaysia Berhad | 2.77 | 5.72 | TBA |
| Bank Muamalat Malaysia Berhad | 2.81 | 5.81 | TBA |
| CIMB Islamic Bank Berhad* | 2.75 | 5.60 | 3.50 |
| Hong Leong Islamic Bank Berhad* | 2.63 | 5.64 | 3.35 |
| HSBC Amanah Malaysia Berhad* | 2.39 | 5.49 | 3.50 |
| Kuwait Finance House (Malaysia) Berhad* | 2.25 | 6.14 | 3.30 |
| Maybank Islamic Berhad* | 1.75 | 5.40 | 3.25 |
| MBSB Bank Berhad | 2.90 | 5.75 | TBA |
| OCBC Al-Amin Bank Berhad* | 2.58 | 5.52 | 3.45 |
| Public Islamic Bank Berhad* | 2.27 | 5.47 | 3.10 |
| RHB Islamic Bank Berhad* | 2.50 | 5.45 | 3.50 |
| Standard Chartered Saadiq Berhad* | 2.27 | 5.45 | 3.50 |
| Development Financial Institution | Base Rate (%) | Base Lending Rate (%) |
Indicative Effective Lending Rate* (%) |
|---|---|---|---|
| Bank Kerjasama Rakyat Malaysia Berhad | 2.85 | 5.83 | TBA |
| Bank Pertanian Malaysia Berhad (Agrobank) |
2.60 | 5.75 | TBA |
| Bank Simpanan Nasional (BSN) | 2.85 | 5.60 | TBA |
*Note: Figure announced by Bank Negara Malaysia as of 6 August 2020.
Source: Bank Negara Malaysia (as of 6 August 2020), news, and respective bank’s announcement.
