OCBC Bank Bhd launched a new home loan package based on a unique mortgage lending rate (MLR). The MLR is OCBC Bank’s internal reference rate developed exclusively for home loans and is calculated based on the mortgage business as opposed to the BLR (base lending rate) which takes into consideration overall bank costs. It is currently set at 4.70%, while OCBC’s BLR is currently 5.55%, The first of such packages, the Ideal Mortgage, has a first-year rate of 2.5%. Thereafter, the interest rate is set at MLR – 1.3%.

One benefit of the MLR-based packages is flexibility. “MLR-based home loan packages are particularly attractive to those wishing to upgrade or sell their properties or even pay off their loans in a hassle-free manner after a short period of about three years," says OCBC Bank’s Head of Consumer Financial Services, Charles Sik. "Packages pegged to the MLR have short lock-in periods. They are highly flexible and thus attractive to property buyers who are always on the lookout for their next investment opportunity. ”