Raise Overnight Policy

Bank Negara Malaysia announced to raise Overnight Policy Rate by 25bps to 3.25%.

With rate hike by 25 basis points, it’s quite certain commercial banks will follow suit to raise the Base Rate by the same quantum.

How’s the impact to our loan? For illustration, assuming 30 years loan with current loan interest of 4.20%, a 25 bps increase –

A) RM1.0M Loan
– monthly instalment increase by RM147

B) RM900k Loan
– monthly instalment increase by RM132

C) RM800 Loan
– monthly instalment increase by RM118

D) RM700k Loan
– monthly instalment increase by RM103

E) RM 600k Loan
– monthly instalment increase by RM88

F) RM 500k Loan
– monthly instalment increase by RM74

G) RM 400k Loan
– monthly instalment increase by RM59

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