Just a community reminder to all the house owner out there to be more diligent when handling existing home loan account.

Some banks are imposing a penalty in home loan interest rates to a borrower that make a late payment to their home loan account for consecutive two months.

Let’s check out the sample of reminder sent out by a bank.


For Example,

If the due date is on 1st of every month, customer supposed to make payment on 1st.

Some banks do have a grace period of 7 days before late payment kick in and of course this will subject to the bank, please check with your existing bank.

Let said if a Borrower makes a payment on 8th, this will consider as late payment for one month.

Next month, Borrower make payment on 9th, and again it will be late payment for a 2nd month.

If this happens, the bank will revise the home loan interest rate by increase 0.75%.

So, if existing interest rate is 4.50%, your revised interest rate will be 4.50% + 0.75% = 5.25%, Ouch! is way too high.

The good news, if a Borrower can pay on time for next six months, the bank will be able to revert the interest rate to original interest rate again. Yay!

For Borrower that have arrears in their home loan account, watch out for the revised rate after one or two month, Base Lending Rate (BLR) + 0% or Base Rate (BR) + 2.85% or; 1% above prevailing facility interest rate, whichever is higher. May differ from one bank to another.

So, keep on eye those home loan account and don’t let them slip away and stay away from being overcharge by the bank.

Hopefully, this is helpful to you and don’t forget to share the post with friends and family.

We’ll see you next time!

For more Home Loan information and enquiry,
please call/ Whatsapp us at +6012-6946746
or visit our website www.malaysiahousingloan.com


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