Property Value? Check Here!

Features

 Home Loan Packages

Home Loan Calculator

Early Payoff Calculator

Estate Agency Directory

 

Classifieds

Sell Property

Rent Property

Buy Property

 

Real Mortgage Reduction

 

First Time Buyer?

Malaysia I Ching Net
 

 

 

Real Estate Resources

Real Estate FAQ

Refinance FAQ

Auction Property FAQ

Housing Loan FAQ

Legislation Issues

Other Property Topics

Latest Property News

 

Do You Known

8 Big Selling Mistakes

8 Big Buying Mistakes

Real Property Gain Tax

Sell & Purchase Process

Base Lending Rate (BLR)

Stamp Duty

 

Feng Shui Tips

Useful Link

The Board of Valuers, Apppraisers and Estate Agents Malaysia

Malaysian Institute of Estate Agent

Malaysian Bar Council

 

中文版

 

House Buyers Cautious Due to Fears of Income Security

 

Potential house buyers are still wary about making property purchases despite lower mortgage rates as the economic outlook remains uncertain.

Average mortgage rates have fallen to about 3.5%, but at the same time banks have been more stringent on the approval of loans. The average mortgage rate is obtained from base lending rate (BLR) of 5.55% minus 1.5% to 2.4% for housing loans (or effective annual rates between 3.15% and 4.05%), depending on the amount and tenure of loans, and the package customers sign up for.

The attraction of lower mortgage rates had been superseded by fears of income security amid a deteriorating economic outlook. For those who are still financially sound, most would rather wait a while longer to snatch up better bargains a few more months down the road. Some are hoping for developers to come up with more creative and attractive perks and some are also waiting for prices to drop further, if any, before they are convinced to buy.

The downside risk for landed properties appeared limited compared to luxury condominiums, with the demand for landed properties expected to return by year-end. Most of the homebuyers in this segment are cash-rich and not highly leveraged. Given the accommodative interest rates today, any forced-selling or foreclosures of properties like the one we saw during the 1997/98 Asian Financial Crisis will be limited in this down cycle.

The demand for luxury condominiums to decline by 30% to 40% in 2010 from 2008, with luxury condo prices already currently down by 15% to 20%.

A house buyer handled by RealEstateAgent.com.my said his current mortgage loan interest rate (BLR-2.40) was 3.15% for the first two years and 3.45% for the remaining tenure.

He recently signed up for a 20-year conventional home loan from Alliance Bank Malaysia Bhd for the purchase of a double-storey house.

He is paying about RM1,700 per month for his RM300,000 loan.

His loan package included a one-time payment of RM2,500 for mortgage reducing term assurance (MRTA), legal fees and stamp duty.

Other banks are offering similar mortgage rates.

For example, RHB Bank is charging BLR minus 2.1% for housing loans that range from RM250,001 to RM500,000, while Hong Leong Bank Bhd is offering BLR minus 2.2% for a RM300,000 mortgage loan.

Malayan Banking Bhd uses a property’s location as one of the criteria to determine interest rate, but is still offering rates in the region of BLR minus 2%.

All these banks have BLR of 5.55%. Check the latest BLR for banks in Malaysia HERE.
 

 | blr.my | euro.my | valuer.com.my | blr.com.my |
| Disclaimer | Contact us |
Copyright © 2006-09.  All Rights Reserved.