Hire Purchase or Loan

There is a lot of difference when you choose to buy something with the help of a loan and when you do it on hire purchase basis. In the former case, the ownership passes to you but in the later case you are just in possession and not a legal owner. It means that a person who has bought a car on hire purchase cannot sell it. Simple enough, he is not an owner of the car and, therefore, he has no such right.

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Popularity: 28% [?]

The much anticipated rise in mortgage lending rates has not happened as predicted and the Overnight Policy Rate remains at 3.5%, and Base Lending Rate for the time being, stays at 6.75%. However pundits maintain that an interest rates increase in the third quarter of 2008 is likely.

Regardless of the eventual movement in OPR, Malaysian lenders continue to compete, and September saw the launching new “discounted” home loan packages and some with innovative features.

For quite a long time, HSBC watched as Malaysian Banks slashed rates. Now the “world’s local bank” with a long history and reputation of service excellence, finally introduces a number of “winning” home loans. If you are not fussy about its 7-year lock-in, then check out HSBC’s Home Smart value Plan (Non Free Moving Cost, No MRTA) which starts with a first year rate of BLR-2.25%, followed by BLR-1.75% (years 2-5) and then BLR-1.95% from the sixth year onwards.

The bonus is that the said package comes with “flexi” features, allowing prepayments and withdrawals.

However, the attractive rates apply provided the Letter of Offer is accepted within 3 days of issuance, which is fair enough.

As far as Refinancing is concerned, smart money is with HSBC’s Home Smart Refinancing (min RM RM250,000) that starts with BLR-2.35% and ends with BLR-2% (years 2-5 interest rates vary depending on the loan amount). This is without a doubt the star amongst all refinancing packages out there…and as said earlier…delivered with a healthy dose of top-notch service.

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Popularity: 9% [?]