The Interrelationship between Home Loan and Interest Rates


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Here, the readers will be exposed to the many different types of home loans available in Malaysia and the interrelationship between home loans and interest rates. For further reading on the different types of home loans, you can check out: Alternatively to know in greater depth of the housing loan interest rates, read this:


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The Interrelationship between Home Loan and Interest Rates:

The Interrelationship between Home Loan and Interest Rates

PowerPoint Presentation:

There is an interrelation between the purchase of the property, the home loan application and the interest rates offered by banks. For first time home loan applicants, it is advisable to do more research on the different types of home loans available in Malaysia.

3 different types of home loans::

3 different types of home loans: (1) Basic Term Loan - the most common types of loan available in Malaysia. Comes with a fixed repayment schedule. There is a need to pay the exact amount of until the end of your tenure.

(2) Semi Flexi Home Loan:

(2) Semi Flexi Home Loan - Compared to Basic Term Loan, this is a way more flexible loan. The borrowers are allowed to make advance payment to the bank without having the need to make any formal requests to the banks. Additional amount paid will reduce the principal amount and thus lowering the interest rates. Usually advisable for people who may have extra cash and wish to reduce their interest rates.

(3) Full Flexi Home Loan:

(3) Full Flexi Home Loan Gives the borrowers full flexibility whether in making advance payments or in making withdrawals whenever they like, and without any complicated procedures. No additional charges will be made on for the withdrawal of money for personal loans. This may also possibly be linked to the savings account, where on a monthly basis, deduction of loan sum in the home loan account.

PowerPoint Presentation:

Major factor affecting the decision made by most home loan applicants is the interest rates incurred by banks. It is important to know what Base Lending Rate (BLR) is. It is the interest rates of which banks will internally discuss and to charge their borrowers.

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The interest rates to be borne by the borrowers is above or below one percent of the rate set. Now that you are clear of the interrelationship between both home loans and their interest rates, get to know more info on the terms offered by banks.

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For more reading and further inquiries, read up:

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