In addition, it is different from some lenders you to definitely implement changeable focus costs on the borrowings, which have a tendency to change over the tenure of your financing.

The latest conditions repaired and you may apartment costs are occasionally put interchangeably however, its specific meanings disagree. In Malaysia, a flat fee will be know once the total feel paid per month whereas the latest repaired speed is the desire price applied over the loan’s title.

Suppose youre paying good 7% repaired interest rate per annum, on the dominating borrowings from RM10, 100 more a great five-season financing label.

This is why the overall desire can cost you was RM3,five hundred (7% increased from the amount borrowed and you will very long time in the financing term), in which full payment as well as passions, add up to RM13, five-hundred across the four-season several months.

Your month-to-month repayment could be a predetermined fee regarding RM225 (rates circular up), where the principal try RM in addition to month-to-month fixed desire costs RM.

Brand new downside to fixed rates for the dominant borrowings is that could cause spending more on attention because share remains, even as you have to pay down your loan. Read more