Hong Leong Bank - Housing Loan / Mortgage 2% Interest for 2 months Campaign Reviewed (ends 30th June 2013)

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Hong Leong Bank Mortgage Rate 2% for 2 months - Effectively about RM1,100 per RM300,000 loan
Drawbacks: Might not offer the most competitive rate in the market following the 2%, minimum RM300,000 loan, quick decision of 2 days needed to accept Letter of Offer from the bank

Promotion Description: Interest rate of 2% for the first 2 months of a Hong Leong Housing Loan
Promotion Period:
1st May - 30th June 2013
Product Name:
Hong Leong Housing Loan
Property Types:
Residential properties which are already completed (not under construction)
Minimum Financing Amount:
Other TnCs:
Have to accept HLB's offer letter within 2 days of being given (normally 7-14 days for most banks)
Go To Hong Leong Bank
Hong Leong are offering something quite unique in the housing loan / mortgage market, a short term 2% interest rate (versus the usual BLR - 2.4ish% rates). At the time of writing in May 2013, the BLR (Base Lending Rate) for Hong Leong bank is 6.6% p.a., meaning that the usual variable rate for a Hong Leong Housing Loan would be in the 4.2% p.a. range (may vary according to your circumstance though).
We weren't able to get the exact dynamics of the product from Hong Leong's customer support team, i.e whether you actually pay less for your installment for 2 months or you pay the same as an ordinary loan would but more goes to paying down the principal amount, but in either case, you do make that saving of about~RM1,100 per RM300,000 or so versus not having the promotion. What's fairly clear (and maybe a little draconian) is the super short response time of 2 days required to the Bank's letter of offer to be eligible for this promotion (usual response time in the market is 7-14 days).
Using some simple back-of-the-envelope calculations, the extra 2.2% p.a. savings or so you get for 2 months will save you round about ~RM1,100 per RM300,000 loan, so it can be quite substantial. Mind you, be sure to check the long term (i.e after the promotion) rates versus the market (or at least versus a non-promotional housing loan from Hong Leong), as a 0.05% p.a. difference from the best rate you could have gotten can mean a ~RM3,000 or so difference in your total interest paid over the mortgage, wiping out your savings.

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