Malaysian Mortgage Rate

To fix or to float?

Of course, go for the lower one most will say. Difference of 1.20% will have significant impact on the monthly installments.

Think again. Bank will tie mortgage customers to a minimum of 5 years. A harsh penalty will be imposed if refinancing is done before the 5 year period. In short, you will be locked for 5 years. So, you have to predict what is going to happen in the next 5 years at least. I dare say your prediction is as good as mine. So, why bother?

I suggest you fallback to your Risk Tolerance. If you are a risk adverse borrower, go for the fixed rate and have peace of mind. On the other hand, if your risk tolerance is high then automatically you will be thinking the more risk the more gain.. so go for floating rate.

Just my 2 cents..


An article on getting the right mortgage.