Base Lending Rate

Base Lending Rate (BLR) is a minimum interest rate calculated by banking institutions based on a formula which takes into account the institutions’ cost of funds and other administrative costs. This is defined by central bank of the countries.

The Overnight Policy Rate (OPR) from Bank Negara Malaysia (BNM) is reference for banks in BLR adjustments, but there might differ from bank to others bank. At the global money market down turn, BLR will get lower and if the money market on uptrend, it will correlation upward. It is wisely and timely to consider take up mortgage loan and start to own your property at the lower BLR as current.

From the record, it shows that the highest BLR Malaysia ever has is 12.27% in year 1998 and the lowest BLR is 5.55% in year 2009. The average is 8.1%. Historically, Base Lending Rate (BLR) has moved in tandem with the OPR. The OPR was last changed on 3 March 2020.
Any changes to the BLR will affect pricing of both existing and new floating interest rate home loans. However, fixed rate home loan packages will remain unaffected. Probably you can use this to justify whether it is better to take the fixed rate loan or floating mortgage loan (BLR +/- x% ).

Check the latest BLR on each bank HERE.

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