For most people like me, house loan interest is our biggest
borrowing in our lifetime that span for many years to settle off. The interest
rate of our mortgage loan is a crucial factor that determines the amount of
money and the repayment time we need to pay back to the bank.
Over the past few years, the interest rate offered by banks
has been gradually dropping to historical low level, and is currently around
5%. Therefore, if your house loan interest is far higher than 5%, you should
consider lowering it to tremendously save the cost and time for you to repay
the bank. If you signed up your current house loan interest package by more
than 3 years ago, there is a great possibility that your loan is bearing an
interest rate of more than 6% (or higher than BLR-0.75% in other words) with
the current Base Lending Rate of most banks in Malaysia standing at 6.75% now.
How to lower your interest rate? This is my advice.
The 1st attempt is to write a letter to the mortgage
business manager of your bank, requesting for a reduction to your house loan interest
with the bank. This is exactly what I did recently, and I received the reply
from my bank 2 weeks after I sent out the letter to them, offering to reduce
the interest rate 2% lower from the existing. Immediately, I saved a huge
amount of money at the cost of just sending out a letter to the bank (cost of
paper, ink, envelop and postal stamp, which is close to zero).
If your 1st attempt failed, either denied or ignored by the
bank, the 2nd attempt is to refinance your house loan interest to
another bank. I'm sure you can easily get an interest rate of below 5% with
zero moving cost offered by another bank nowadays. There are plenty of such
packages around.
Take out your house loan interest offer letter and check
your interest rate now. You could save an amount of at least 5 figures RM of
your hard earned money by this interest rate reduction attempt.
Thanks for sharing such informative post. you can also check here to know more about
ReplyDeleteHome Loan Interest Rate
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