Early of October, I read some latest news from an OCBC agent through a local forum that the MLR rate will be revised to 4.40% per annum soon, from 4.70%. I knew the agent personally and I believe the news was true since it is from reliable source.
However I did not share this news in my website immediately as the rates was not officially announce yet. So I just waiting and checking on the OCBC website regularly. I thought the latest revised rates should be announce in the “Latest News” section or somewhere in the main page with eye-catching graphic, but end up the announcement only can be found in the property loan main page. To get into that page, I need to browse from main page to select personal banking. In personal banking page I have to select loan and finally landed to loan main page and found the advertisement. 
OCBC Main page
OCBC Loan Main Page
And finally found this:
Congratulations to all OCBC Ideal Mortgage loan owner as you can enjoy lower rates now. I would said this is very attractive rates in current market and some more with short lock-in period.
And finally a question raised up in my mind: Why OCBC changed the MLR rates? This gave me not a very good impression again that the MLR rate is solely controlled by OCBC bank and it can change anytime!!
I’m currently getting a new housing loan and i’m offered with OCBC MLR rate, together with loan package from other bank.
I do agree that the rate is very attractive, MLR-1.3 = 3.10 (similar to BLR-2.45), one of the best rate you can find in the market, with only 3 years lock-in period.
However, i still feels no confident with MLR.
“This gave me not a very good impression again that the MLR rate is solely controlled by OCBC bank and it can change anytime!!”
This can be good and bad… the bank can also increase it anytime without following any standard/maximum rate as control by Bank Negara.
My remaining question is, why MLR reduce it now, not as soon as BLR reduce it since March 2009, 6 mths back? answer= OCBC control it
Hi, can you share the margin of finance for your loan and the loan amount?
I believe MLR rate was launched less than half year ago, so there will be no impact when the BLR adjusted during March 2009.
I do agree that the MLR adjustment can be good or bad, simply based on personal interpretation. However, I am very sure the bank won’t spoil their image/reputation by simply increase the rates. Any rates increment should be justified in professional way by OCBC.
MLR changes will have to go through BNM for approval. Everything is governed and rule by BNM. OCBC have to get approval from BNM even it is also control by the bank. You said that your friend is an agent for OCBC, you may ask him to show you the slides provided by OCBC to their staff.
SCB KLIBOR HL rate also changes every 3 months. Many people in Malaysia would choose it over MLR because it is 11 years in the market. Have anyone compare the features and charges with MLR package? I bet they don’t.
Thanks for the information. I would said this is very persuasive information as most people scared the MLR rate is solely controlled by OCBC. Since MLR changes will have to go through BNM for approval, I believe most people will have more confident to it. I will check with my friend as well.
As I mentioned, even though KLIBOR changed very 3 months, but at least customer know the changes is governed by BNM. Perhaps this is one of the reason people choose KLIBOR instead.
OCBC maybe should update the website to provide more information about the Ideal Mortgage, to gain back confident from potential customer.
Btw, do you know what is the reason OCBC reduce MLR rate? It help to convince people that the rate adjustment is sensible.