*This article was updated on 8 August 2020.
Bank Negara Malaysia recently lowered the Overnight Policy Rate (OPR) for the fourth in 2020 by another 25 basis points to 1.75% due to the COVID-19 pandemic.
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A change in the OPR like the recent OPR cut in July 2020 will trigger a chain of events which affects various borrowing rates being offered by banks to consumers including short-term interest rates, fixed deposit rate as well as the base rate (BR) and base lending rate (BLR).
Hence an OPR cut usually means a lower cost of borrowing for banks and financial institutions and thus, cheaper home loans for consumers whereas an OPR hike would result in the opposite – a higher cost of borrowing.
We have explained all you need to know about the Base Rate and Base Lending Rate (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/financing products priced against the base rate, banks and financial institutions are supposed to disclose an indicative effective lending rate for a standard housing loan / home financing product for consumers at all branches and websites.
The list below is the most recent one released by BNM as of 6th August 2020 and illustrates the respective banks’ Base Rate, Base Lending Rate and Indicative Effective Lending Rate (ELR). 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.
| Financial Institution | Base Rate (%) | Base Lending Rate (%) |
Indicative Effective Lending Rate* (%) |
|---|---|---|---|
| Affin Bank | 2.70 | 5.56 | 3.30 |
| Alliance Bank | 2.57 | 5.42 | 3.11 |
| AmBank | 2.60 | 5.45 | 3.25 |
| Bangkok Bank Berhad | 3.22 | 5.87 | 4.42 |
| Bank of China (Malaysia) Berhad | 2.55 | 5.35 | 3.55 |
| CIMB Bank Berhad | 2.75 | 5.60 | 3.50 |
| Citibank Berhad | 2.40 | 5.55 | 3.20 |
| Hong Leong Bank Malaysia Berhad | 2.63 | 5.64 | 3.50 |
| 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 | 1.75 | 5.40 | 3.25 |
| OCBC Bank (Malaysia) Berhad | 2.58 | 5.51 | 3.45 |
| Public Bank Berhad | 2.27 | 5.47 | 3.10 |
| RHB Bank Berhad | 2.50 | 5.45 | 3.50 |
| Standard Chartered Bank Malaysia Berhad | 2.27 | 5.45 | 3.50 |
| United Overseas Bank (Malaysia) Bhd. | 2.61 | 5.57 | 3.36 |
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 | 2.52 | 5.47 | 3.25 |
| Bank Muamalat Malaysia Berhad | 2.56 | 5.56 | 3.56 |
| 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 | 2.65 | 5.50 | 3.20 |
| 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 | 2.60 | 5.58 | 3.40 |
| Bank Pertanian Malaysia Berhad (Agrobank) |
2.35 | 5.50 | – |
| Bank Simpanan Nasional (BSN) | 2.60 | 5.35 | 3.10 |
Source: Bank Negara Malaysia (As at 6 August 2020)
Read this next: (Updated) BNM’s 6-month loan moratorium: What is it and how can it help you?
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