MY Bank Home Loan interest very high ? Dont hearsay..

Who says MY bank home loan is very high, more than 5%?

Why rely on hearsay or rumour?

Why not ask someone who owns MY property for more than a decade ago?

Since TOP till now, my bank loan interest rate is fixed at 6.6%  - 2.4% = 4.2%; 6.6% being Basic Loan Rate (BLR) & 2.4% being fixed cost of finance.

In other words, my MY home loan has been 4.2% fixed for many years.  

(I jusy checked.  In fact my loan rate is now 4.05)


Imagine 10-years ago, RM:S$ = 2.5; now RM:S$3.23  

Translate to S$ loan interest, it's equivalent rate would be 4.2%/3.23 = 1.3%.

So, 1.3% fixed rate, so long as the BLR is 6.6%.

1. Someone asks:

"But that also means the actual value of your house has dropped via depreciating exchange rate."

My reply: "Contrary, your purchased price is now discounted at 30% saving due to forex advantage for SG.


2. Someone asks:

"But if you sell now? Current asset value…"

I would reply,

"It is always a blessing to enlarge our boundary and a good Plan B.  Even if the gain is RM500k, I would not sell it.  

Afterall, it's Plan B security and retirement home away from home".


The MY FD rate is about 3~4% p.a.  So, the FD interest can offset to pay the fixed loan interest at 4.2%.

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