Talking

I heard more and more rumors saying that since this November,all banks will start to offer the same rate for home loan.The new rate will most probably be Basic Lending Rate(BLR)-1.9%.

It’s said that because many banks currently provide lower and lower interest rate for home loans so as to get more customers,the profit margin has been less and less.All banks now tight up with an agreement that interest rate from home loan will be fixed and this could help the banks fairly share the market.

Till this point,no one confirm for the rumor yet and I hope that will never happen.If it really comes in some day,the consumer will be the only one who loses the benefits as the banks will not go to give any waive of legal fees etc.

I think competition should build up the ability of growth in a tough situation for companies,not build up the ability of transferring pains to consumers.So if the agreement exists,the bank that doesn’t join it ought to be the best local bank in Malaysia,does it?

*The current BLR is 5.55%.