OCBC’s Ideal Mortgage
Yesterday, OCBC launched a new home loan package called Ideal Mortgage. It is supposedly different because it uses its own unique Mortgage Lending Rate (MLR) instead of the typical Base Lending Rate (BLR).
Apparently, the MLR is developed exclusively for home loans and is calculated based on the mortgage business whereas BLR takes into consideration the overall bank costs.
One of the first benefit is that its MLR is currently set at 4.70%, while its BLR is currently 5.55%. The first-year rate of 2.5%. Thereafter, the interest rate is set at MLR – 1.3%. As far as I know, this is one of the lowest in the market today.
Other benefits include shorter lock-in period of 3 years, instead of the typical 5 years. Its exit cost, if you choose to pay off sooner, is apparently lower too although they did not state how much. All this will mean more flexibility for the consumer who are inteding to invest in properties with a shorter time frame.
What do you think? Is this a good home loan package? Have you encountered other home loan packages which are better?
This post has 6 comments
July 1st, 2009
It is low indeed! When I saw the ad and didn’t see the detailed rates, I doubted that it can be that cheap. But it really is! Great time for those who are waiting to pick up properties as investments.
July 6th, 2009
Yeah, I do agree that at one glance, it looks great. But as with all mortgages, detail checks need to be done with the banks. As the Chinese say “No such big frogs jumping around the streets!”
July 7th, 2009
one thing about an internal rate..OCBC will control. Yes .. it is cheaper than BLR..but can OCBC guarantee that?
if it is based on the mortgage business, i guess it will increase once OCBC has met its’ qouta.
what are the basis calculating MLR? need more info.. OCBC need to explain further
July 10th, 2009
Hmm, I also wonder if OCBC can guarantee these rates. I am thinking that it is probably just a lost leader where you get cheap first year rates, but you pay through your nose later. Either way, we have to be very careful when choosing a package.
October 29th, 2009
but i just choose this packgage for my home loan…without longer consideration.it is flexible,and the rates is control by bank negara, it cant be increase by the bank itself.though thats internal rate,but still needs bank negara to aprove so i think not much problem??i dont know much about this financial thing..hope anyone tell me more..
October 29th, 2009
scch – Wow, you just got this mortgage package? Congrats on your house purchase. I guess so long as you are happy with the features of the package, then it is ok. Now, we need to concentrate on paying it off as soon as possible!