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Guide to Home Ownership by Standard Chartered Bank
With the myriad factors to consider in buying a home, Standard Chartered’s innovative new home loan, MortgageKLIBOR, helps homeowners get off on the right foot.
For most people, purchasing their first home is extremely exciting. It signals a new stage in life and a bright future, be it in that swanky apartment in Sri Hartamas or that nice corner lot in USJ. From colour scheme to furniture and landscape, your choices are limited only by your imagination.
However, excitement can quickly fade when one is faced with the daunting task of understanding the numerous procedures and processes involved in purchasing a home – from lawyer letters and clauses to potential investment returns. No wonder some put off making that decision.
One of the most crucial aspects of home buying is selecting the right home loan. The myriad of financing options available can be very confusing. Standard Chartered has the experience, borne from decades of working together with homebuyers, to develop products that provide comprehensive and effective solutions for today’s home financing needs.
The recent launch of Standard Chartered MortgageKLIBOR puts at your disposal an innovative home financing tool that surpasses all others. MortgageKLIBOR is the FIRST conventional home loan offered by a bank that is pegged to the three-month Kuala Lumpur Inter-Bank Offered Rate (KLIBOR) – which is lower than the average market financing rates.
Why KLIBOR?
3 things make Standard Chartered’s newly launched MortgageKLIBOR a unique and revolutionary product – transparency, greater savings and rate protection.
Firstly, what you see is what you get from MortgageKLIBOR. MortgageKLIBOR is based on the borrowing and lending of funds between banks and can be checked directly from any major newspaper daily. By pegging to this inter-bank rate, Standard Chartered is revealing its costs and margins, giving consumers a clear, transparent view of interest rates.
Secondly, KLIBOR has been consistently lower than BLR (see graph). For example, BLR had been hovering at 6% from January 2004 to January 2006, when it began climbing to a maximum of 6.8% (where it is still remaining). On the other hand, KLIBOR has remained consistently under 4% and even dipped to below 3%. This translates to greater savings through MortgageKLIBOR.
Finally, Standard Chartered has added an additional security feature of fixing the repayment rate on a 3-month interest rate, by adopting the KLIBOR rate on the last business day of the previous quarter, updated every quarter. This gives customers precious stability.
Whether you are a first-time homeowner or upgrader, seeking investment or refinancing, MortgageKLIBOR is the home financing solution for your needs.
More Home Loan Tips
- Loan packages that offer flexible repayment and ability to redraw surplus money repaid are generally more expensive.
- Most loan packages have a lock-in period – the minimum period to maintain your loan with the bank with no penalty. Find this out so that your financial planning is not affected if you settle your loan in advance.
- Get details on when the first-year rate begins – dated from the offer letter or first drawdown, as this will affect the duration of lower rates.
- Some banks allow you to start principal repayments even during construction, saving on interest. Negotiate with your bank if you wish to start repayment immediately.
- Consider factors such as the professionalism and quality of customer service, and ease of remitting your monthly instalments.
For more information on MortgageKLIBOR, call 1300-880-388 or visit www.standardchartered.com.my or walk into any of our 37 branches nationwide.
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