Request For Housing Loan Interest Rate Reduction From Your Bank

 If you have bought your house and is now paying for your housing loan instalments every month, you may now try to contact your bank to ask for housing loan interest rate reduction. If your outstanding amounts for your housing loans are less than RM100,000 for each loan and are not practical for you to refinance the loans, You may try to write to your bank to discuss with them of your matter. There are some people who wrote to Citibank and RHB bank asking for reduction of their housing loan interest rates some time ago and most of them do received replied from their respective bank.

Below are the replied that received by some of the people and you may check out for you to have some clues when you want to contact to your bank for the reduction as well.

Citibank

A lot of people be given a reduction of their housing loan interest rate by 1.7% which is from BLR +0.5 change to become BLR -1.2 after reduction. Although the exclusive benefit associated with loyalty interest rate reduction happens to be cancelled, it's still much better compare to the interest rates given from the initial housing loan agreement. Nonetheless please be aware that it has an additional time period of five years bonding term taking effect from the acceptance date. If you make full settlement earlier than the five years bonding term, you will need to pay for the penalty of 5% of principal amount.

RHB Bank:

For another person, although the remaining amount of her housing loan with RHB bank is less than RM60,000, the bank is still lenient enough to slash another 0.5%. She is fortunate enough as this is actually the second time RHB bank reduce the interest rate for her with 5 years ago she has received her first 0.25% interest rate reduction. Therefore, she does enjoys a total housing loan interest rate reduction of 0.75% compare to the initial rate that offered by the bank for her original loan.

The right way to request for housing loan interest rate reduction

In order to get a housing loan interest rate reduction, all you need to do is just write a simple letter starting with the titled of "Request For Housing Loan Interest Rate Reduction". Then follow by the opening sentence of "With reference to the above, I would like to request for reduction of my housing loan interest rate." and write in all your account details plus the reason why you want to have the reduction. After you complete writing your letter, just affix a stamp, write the bank address, and post it or fax it.

Many people have tried this method by just a simple fax, most of them manage to get a reduction on their loans and save them a couple hundred each year!

Lastly, most people are successfully reduce their interest rates for their housing loans and most of them are carrying with floating interest rate with is fluctuate with the movement of BLR according to the economy condition. So, it is not sure that such reduction is actually applicable for fixed interest rate housing loans. However, it is really no harm for you to get it a try even you are signing your housing loan with fixed interest rate. You have nothing to lose!