Property Financing Info Centre

Property Financing Info Centre

Effective 1 August 2022, the Standardised Base Rate (IBR) will replace the Islamic Base Rate (IBR) as the main reference rate for new retail floating rate financing for individual customer.

The objectives:

  • Facilitate effective transmission of monetary policy decisions
  • Promote a transparent reference rate that enables meaningful comparison of financing products across FSPs to allow consumers to make informed decisions
  • Reinforce sound and efficient practices in the pricing of floating-rate retail financing facilities by FSPs.

Islamic Base Rate is made up of 2 parts, our benchmark Islamic cost of funds (ICOF) and the Statutory Reserve Requirement (SRR) cost imposed by Bank Negara Malaysia.  Our benchmark COF now reflects the cost of raising new funds in prevailing market funding conditions based on the 3-month KLIBOR as well as customer deposit rates.

Standardised Base Rate is a reference rate that is linked solely to the Overnight Policy Rate (OPR), as determined by the Monetary Policy Committee (MPC) of Bank Negara Malaysia

Before 2 January 2015

From 2 January 2015

From 1 August 2022

Islamic Financing Rate


Financings prior to 2 January 2015 continue to be referenced against the Islamic Financing Rate (IFR) until their maturities.

 

Currently, IFR will be used for financing for non-individuals.

Islamic Base Rate


Effective 2 January 2015, the Islamic Base Rate (IBR) were used for new floating rate financing facilities for individual customers.

Financings up till 31 July 2022 will be continued to be referenced against the Islamic Base Rate (IBR) until their maturities.

Standardised Base Rate

 

With effect  from 1 August 2022,  the Standardised Base Rate (SBR) will be used for new floating rate financing facilities for individual customers as well as to Sole Prop. under individual name for business use.

 

 

Please click HERE for the Standardised Base Rate Consumer Guide.

Please click HERE for the Standardised Base Rate FAQs.

The move to SBR does not affect Effective Profit Rates

Terms

Islamic

Financing Amount

RM350,000.00

Financing Tenure

30 years

Lock-in Period

NIL

Reference Rate

4.35%

  1. Compare the effective profit rates quoted by different financial institutions before taking out a new financing.
  2. Ask for a Product Disclosure Sheet (PDS) providing you with the effective profit rate and total payments amounts for the financing facilities you plan to take out.
  3. Ask your financial institution to explain the factors which may lead to a change in the Islamic Base Rate (IBR) /Islamic Financing Rate(IFR) / Standardize Base Rate (SBR).
  4. Your monthly payment amount will increase or decrease when there is a change in the IBR/IFR/SBR.
  5. You should also assess whether you can continue to afford the financing payment if the profit rate increases in future.

We are pleased to share with you our new Property Financing-i Service Charter, where we outline the service standards we provide and information on how to reach us for Property Financing-i related queries.

  1. Know your customer
  2. Timely and efficient service
  3. Transparent and personable service
  4. Banking made accessible

 

Please click here to view the Property Financing-i Service Charter.

For enquiries connect with us online or drop by your nearest Hong Leong Bank Branch.