Comments on: OCBC Ideal Mortgage

By: Tan H.H.

Tan H.H. — Tue, 20 Oct 2009 04:05:47 +0000

If one scare of MLR will increase, don’t you think BLR the same? MLR index increase and decrease will go through BNM approval. Don’t forget that everything happening in the banks in Malaysia rule by BNM. Like KENSON said, with 3 years bonding period, after an under construction property finish job, your bonding period will end soon. It is because the bonding period start from the 1st release of loan. Like any other bank, you hardly can find a loan’s bonding period starting from 1st release. You just imagine, 5 years bonding period for under-con condo which will take approx 3 years to complete. Total of 8 years!! Early exit fee for OCBC Ideal Mortgage is only 2% of loan amount, lower compare to standard rate 3%.

By: kenson

kenson — Thu, 24 Sep 2009 06:09:29 +0000

In my opinion, there’s few advantage of this package comparing to others, which the most attractive is 3 years lock in period. With 3 years lock in, the lock-in period almost end when the property completed (2 years for landed and 3 years for condo/apartment).
Investor can straight away sell the property that time without any penalty.

I believe OCBC will not spoil their own reputation by simply increase the MLR for more profit. The rates must be on par with the market rates and attractive enough for potential customer. Of course, the rates definitely will be higher because of short lock in and lower penalty. Consumer always have to give and takes in this case.

Why do you think KLIBOR is better bet? Is it better than BLR based loan? From my analysis, the BLR based package should be more attractive, in terms of rates.

By: JonJon

JonJon — Wed, 23 Sep 2009 06:42:51 +0000

I honestly think there isnt a single valid point for customers to subscribe to OCBC’s MLR (unlike your post) when there is no basis for tabulation of the MLR.

If MLR is pegged to the mortgage business, what changes in the OCBC mortgage business will cause an upward/downward change? Would it change downward if the mortgage business becomes overtly profitable? If that is so, do you honestly think the bank will reduce their profits? There were no statements given in any of the press reports.

Now on the other extreme, would OCBC increase the MLR when the mortgage business becomes less profitable? Could OCBC use this as the ace in it’s sleave to increase profits whenever it is necessary? Does BNM govern the MLR movement? There are also no statements given in any of the press reports.

Mortgages are almost always a huge sum. As an investor we need the ability to trust the reference rate. This is where KLIBOR is the better ‘bet’.

By: kenson

kenson — Wed, 16 Sep 2009 13:58:02 +0000

Hi Racheal,

I do have same opinion. MLR calculation is a myth and it solely controlled by OCBC, in my opinion.

When comparing between KLIBOR and BLR, I will more prefer the BLR based package. You can check the comparison here.

http://moneysospecial.com/mortgage-loan/blr-vs-klibor/

By: racheal

racheal — Wed, 16 Sep 2009 09:56:51 +0000

i dont think MLR can lasting in market since the rate only suitable for investor. and i feel not comfortable about rate just control by OCBC own, if anything happen on OCBC, MLR will go up ???really unsecure….
compare to KLIBOR,i ll prefer it.