BSN housing loan interest rates are determined by the Standardised Base Rate (SBR) and vary based on the loan amount and tenure. As of the latest updates, the SBR set by Bank Simpanan Nasional (BSN) is 3.00% per annum. The rates for BSN MyHome loans are structured to accommodate a range of borrowers, from individuals to organizations, offering flexibility in financing options.
For a loan amount of RM100,000 and below, the interest rate is SBR + 3.85% for the entire tenure. This rate applies to both completed and under-construction properties. For loans between RM100,001 and RM300,000, the rate is SBR + 1.45% for non-Finance Entry Costs (Non-FEC) and SBR + 1.60% for FEC. For loans between RM300,001 and RM500,000, the interest rate is SBR + 1.35% for Non-FEC and SBR + 1.50% for FEC. For loans exceeding RM500,000, the rate is SBR + 1.25% for Non-FEC and SBR + 1.40% for FEC. It’s important to note that an additional 0.15% is added for loans without insurance.
BSN Home Loan Interest Rate
How Are BSN Housing Loan Interest Rates Calculated?
BSN housing loan interest rates are calculated based on the Standardised Base Rate (SBR), loan amount, and specific terms of the financing package. The SBR serves as the benchmark for calculating the Effective Profit Rate (EPR) on the loan. The calculation involves adding a margin to the SBR, which varies depending on the loan amount and whether it involves FEC or Non-FEC costs.
For example, for a loan amount between RM100,001 and RM300,000, the margin added to the SBR is 1.60% for FEC. This means the effective interest rate would be 4.60% per annum, considering the current SBR of 3.00%. The margin reflects the bank’s assessment of the borrower’s risk and the associated costs of providing the loan.
What Are the Terms and Conditions for BSN MyHome Loans?
The terms and conditions for BSN MyHome loans include eligibility criteria, loan tenure, and repayment methods. BSN MyHome loans are available for individuals, joint applicants, and organizations. Applicants must be Malaysian citizens aged 21 years and above, with a regular income and the ability to make repayments. The property must be located in Marketability Factor (MF) 6 and above areas.
The loan tenure can extend up to 35 years or until the borrower reaches 70 years old, whichever comes first. The margin of financing can reach up to 95% of the property value, subject to terms and conditions. Repayment methods include over-the-counter payments at BSN branches, online payments via Standing Instructions, or Interbank GIRO (IBG).
What Packages Are Available Under BSN MyHome Loans?
BSN MyHome loans offer several packages to cater to different needs, including the Second Charge Package and the 2 Generations Package. The Second Charge Package is specifically for government servants who require additional financing if their existing home loan is insufficient. This package allows for a second charge on the property to secure additional loan amounts.
The 2 Generations Package is designed for multi-generational families, allowing parents and children to jointly apply for a longer loan period. The child must be a student aged 21 years or older and pursuing studies at the Diploma level or higher. This package enables families to manage their housing finances more effectively over an extended period.
How Does Insurance Affect BSN Housing Loan Interest Rates?
Insurance coverage such as Mortgage Reducing Term Assurance (MRTA) can influence the interest rates of BSN housing loans. Loans without insurance are subjected to an additional 0.15% on top of the standard interest rate. MRTA is recommended to safeguard the borrower’s interest in the event of death or permanent disability during the loan tenure.
For instance, for a loan amount exceeding RM500,000, the interest rate with insurance is SBR + 1.25%. Without insurance, this rate increases to SBR + 1.40%, reflecting the additional risk to the lender. Prospective borrowers should consider the benefits of MRTA in mitigating unforeseen circumstances and potentially lowering their interest rates.
What Are the Fees and Charges Associated with BSN MyHome Loans?
BSN MyHome loans come with several fees and charges, including late payment charges, early settlement fees, and processing fees. A late payment charge of 1% per annum is imposed on any outstanding amounts. Early settlement of the loan is permissible, but it requires a written notice to BSN, and there may be a fee if settled before the maturity period.
While there is no processing fee for BSN MyHome loans, other charges include a Redemption Letter Fee of RM50 per request and a Letter for EPF Withdrawal Fee of RM20 per request. Borrowers should be aware of these additional costs when planning their housing loan to ensure comprehensive financial management.