BLR

BLR= base lending rate. Only people with housing (or other types) loans are concerned with this. When I saw that the interest rates are going down, I was quite happy. The first time it happened, end of last year, my banker told me that that action shaved off three years of repayment! Less that half a year ago, our rate is 6.75% per annum. Then it dropped to 6.5%. A 0.25% drop is equivalent to 3years of repayment! That is amazing.

CIMB and Maybank over the course of the last few days announced that they would cut the rate further to 5.95%, effective 3 February. Imagine that! But I'm still waiting for good news from OCBC. So far, silence. Calling out to OCBC! Please adopt this ASAP! Talking about banks, specifically OCBC, they should do something about their internet banking system. It should also allow loan customers to track the loan status and payment online.

Then, there is the bad news that the fixed deposit interest rates are also down. 2.5% for 1 month deposits! Seems like pointless (unless one person has a humongous amount). This will impact mostly the pensioners and the older generation, some of whom lived on interests earned from FDs. That is sad.

We couldn't have the good without the bad.

PS, 30 Jan 09, OCBC announced that they will be reducing their BLR to 5.95% effective Feb 3rd. Yay!