Latest Malaysian Bank BR + BLR Rates @ May 2020

Here are the latest Malaysian bank BR and BLR rates, as of May 2020, and estimates of how much you will save after the recent Bank Negara reduction in OPR!

 

Third OPR Reduction In 2020 : -0.5%

On 5 May 2020, Bank Negara announced the third OPR (Overnight Policy Rate) reduction in 2020 – a 50 point shave.

That means Bank Negara reduced a full percent off the OPR since the last change in May 2019 – one year ago.

Malaysian Bank BR + BLR Rates @ May 2020

What this means is property owners will get a reduction on the interest they pay on their property loans.

Fixed deposit interest rates, on the other hand, will be negatively impacted.

So a reduction in OPR is seen to “encourage” investment and spending.

 

Latest Malaysian Bank BR + BLR Rates @ May 2020

Bank Base Lending Rate (BLR) Base Rate (BR) Effective
Date
Old New Old New
Affin Bank 6.31% 5.81% 3.45% 2.95% 14/5/2020
Alliance Bank 6.17% 5.67% 3.32% 2.82% 15/5/2020
AmBank 6.20% 5.70% 3.35% 2.85% 14/5/2020
BSN 6.10% 5.60% 3.35% 2.85% 15/5/2020
CIMB 6.35% 5.85% 3.50% 3.00% 13/5/2020
Citibank 6.30% 5.80% 3.15% 2.65% 13/5/2020
Hong Leong 6.39% 5.89% 3.38% 2.88% 12/5/2020
HSBC 6.24% 5.74% 3.14% 2.64% 13/5/2020
Maybank 6.15% 5.65% 2.50% 2.00% 8/5/2020
OCBC 6.26% 5.76% 3.33% 2.83% 13/5/2020
Public Bank 6.22% 5.72% 3.02% 2.52% 12/5/2020
RHB 6.20% 5.70% 3.25% 2.75% 13/5/2020
Standard Chartered 6.20% 5.70% 3.02% 2.52% 14/5/2020
UOB 6.32% 5.82% 3.36% 2.86% 15/5/2020

 

Financial Impact Of This BR / BLR Reduction

Let’s take a look at the financial impact of this 0.5% reduction in the BR and BLR rates :

Assumptions

Loan Amount : RM 500,000
Old Interest Rate : 4.50%
New Interest Rate : 4.00%
Tenure : 30 Years

Here is an estimate of how much lower your monthly instalment will become, and how much you will save after 1 year :

Instalment Old New Difference
Monthly RM 2,533.43 RM 2,387.08 – RM 146.35 (5.78%)
After 1 Year RM 30,401.16 RM 28,644.96 – RM 1,756.20

This may seem like an insignificant amount of money, but should you continue to pay the old instalment of RM 2,533.43 per month, it will actually shave THREE YEARS off your 30-year loan, and save you RM 94,942.83!

Of course, the BR and BLR rates are unlikely to remain so low for so many years… but let’s say it remains this low for just 3 years.

Here is an estimate of how much you will save in interest over the next 3 years, assuming the BR and BLR rates remain so low :

Accumulated Interest Old New Difference
After 1 Year RM 22,334.99 RM 19,839.74 – RM 2,495.25
After 2 Years RM 44,299.41 RM 39,320.73 – RM 4,978.68
After 3 Years RM 65,876.26 RM 58,428.38 – RM 7,447.88

On average, you should save about RM 200 per month in interest for a RM 500,000 loan with an interest rate of 4.5%.

Now, RM 7,447.88 isn’t a lot of money over 3 years, but if you can invest that money or just plow the money back into your property loan, that will generate you A LOT of money over time :

  • 4% pa for 20 years : RM 16,553.52
  • 5% pa for 20 years : RM 20,203.42
  • 4% pa for 30 years : RM 24,678.54
  • 5% pa for 30 years : RM 33,275.22

 

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