Standard Chartered currently running a promotion on the home loan that is based on the KLIBOR (Kuala Lumpur Interbank Offered Rate), , the Mortgage KLIBOR.
The loan rate from now till 18 September is as below
First 2 years – Klibor + 0.85 %
Third years onward – Klibor + 1.16 %
Based on the current 3-month KLIBOR of 2.13% p.a. until 30 September 2009. This is equivalents to the loan rate of,
First 2 years – 2.99%
Third years onward – 3.19 %
The minimum loan size for this Mortgage KLIBOR is RM100,000 and is subject to a 5-year lock-in period. Mortgage Reducing Term Assurance (MRTA) is required for this loan.
For example with the loan amount of RM 300, 000 with loan tenure of 30 years,
Total interest paid is around RM 165, 076.42
Comapre this to the BLR based home loan,
For example with the loan amount of RM 300, 000, the BLR rate of 5.55 and loan tenure of 30 years
1) loan rate of BLR – 2.3, that is 3.25% for the whole period,
Total interest paid is around RM 170, 022.82
2) loan rate of BLR – 2.4, that is 3.15% for the whole period,
Total interest paid is around RM 164, 115.83
The KLIBOR rate will be reviewed for every three months and the BLR is based on the overnight policy rate (OPR).
Merely based on the total interest paid suggested that the Mortgage KLIBOR seems to be quite attractive. Welcome to share any information and experience that you have for this Mortgage KLIBOR and the pro and con compared to other type of house loan.