Exploring the Positive Impact of
Lower Interest Rate on
Monthly Mortgage Payments

Buying a new home is a significant milestone -
personally and financially.

The emotional journey of many homeowners often begins with excitement and anticipation... Until we take a closer look at our finances and realise how much money we’ll have to pay. Mortgages take a hefty chunk out of our pay packets, leaving very little left for other expenses. Fret not, this simply highlights the importance of understanding the fundamentals of our personal finances. By doing so, we can effectively chart a course toward making our dream home a reality.

However, Bank Negara Malaysia (BNM) has been increasing interest rates. Why is this important? You might ask. Simply put, this means monthly mortgage payments are increasing.
There are several reasons why a lower interest rate is good for homeowners. First, it’s easier to afford a mortgage. A lower interest rate makes it easier for you to qualify for a larger loan. Plus, your monthly payments will be lower.

That means you'll have extra cash for other expenses, such as renovations, furniture, and everything you need to turn your house into a home.

How long it would take to pay off a RM500,000
loan with different monthly budgets.

Second, you’ll stand a better chance of an early payoff. No one likes being tied to a loan for the rest of their days. With a lower interest rate, you’ll have more flexibility in choosing where your extra money goes, including an overpayment for your mortgage.
That way, you’ll be paying off more of your mortgage capital, which in turn will shorten
the length of your term. In other words, you’ll be mortgage-free earlier than planned!
Third, it’s a great opportunity to build equity. If you’re looking to move to a bigger home in the future, you’ll want to know if you have enough equity in your current property to put you in a good position when it comes to financing your move. A lower interest rate will help you to pay off your mortgage capital more effectively (this is especially true if you can afford to make overpayments). This means that you’ll build up equity in your property much quicker, making all the difference when it comes to being able to afford your dream home.

How long it would take to pay off a RM500,000
loan with different monthly budgets.

Finally, a lower interest rate can boost the housing market. When interest rate drop, the cost of buying a house becomes cheaper, which increases the demand for housing. This increased demand can benefit homeowners who already own a home by increasing the financial value of their properties. After all, lower interest rates go hand-in-hand with a buoyant housing market. An increase in demand will lead to slowly increasing home prices.

How long it would take to pay off a RM500,000
loan with different monthly budgets.

Looking to save money on your monthly mortgage?
Here are a few top tips:

Refinance your mortgage if your interest rate is higher than the current market rate.
Make extra payments on your mortgage whenever possible. This will help you pay off your loan faster and save money on interest.
Consider a shorter-term mortgage. This may mean higher monthly payments, but you’ll end up paying less interest overall.

Now for the good news.

We are collaborating with our panel bankers to give Low Interest Rate from 3.9%*. In other words,to help shave off the financial burden so you can own your dream home. All you need to do is take advantage of Sime Darby Property’s Great Deals Campaign!
For Selected Properties Only.
Terms & Conditions Apply.

Buy Now and Begin Your Property Journey: Here's Why!

Explore all the reasons why it’s the perfect time to own a property with Great Deals.

Register Your Interest Now

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