OPR Holds at 2.75%: Why Malaysian Homeowners Should Refinance Now
Bank Negara Malaysia (BNM) held the Overnight Policy Rate (OPR) steady at 2.75% on 7 May 2026, a rate that has not moved in more than a year. Economists at Kenanga and BMI now expect the pause to last through the rest of 2026.
But the more useful question isn’t “When will the OPR rise?”, it is this: if the rate isn’t moving all year, why are you still paying 4.20% on the same loan?
- BNM held the OPR at 2.75% on 7 May 2026, Kenanga and BMI expect no change through year-end.
- 4.10%-4.35% home loans can now refinance to as low as 3.50% via iMoney’s panel banks (Hong Leong, RHB, MBSB).
- Example: RM480,000 @ 4.20% → 3.50% saves ~RM200/month, roughly RM52,800 across the remaining tenure.
- Three things to verify before signing: lock-in clause, legal fee waiver, and your DSR.
iMoney’s May refinance panel
These are the three refinance rates currently offered by iMoney’s panel banks this month. Rates can move; confirm via a pre-screening or directly with the bank before you sign.
| Bank | Rate (p.a.) | Note |
|---|---|---|
| Hong Leong | 3.50% | Lowest on panel – main example below |
| RHB | 3.60% | Alternative |
| MBSB | 3.70% | Islamic option |
The math for a Klang Valley household
Take a Klang Valley household with RM480,000 remaining on a home loan at 4.20% over 22 more years. Their monthly instalment sits around RM2,810.
Refinance the same balance to 3.50% with Hong Leong, and the instalment drops to roughly RM2,610, a saving of about RM200 a month. Across the remaining 22-year tenure, that is roughly RM52,800 back in your pocket. RHB at 3.60% saves ~RM175/month; MBSB at 3.70% saves ~RM150/month.
RM200 a month is not life-changing. But it is a full Myvi instalment, or one full year of tuition fees, freed up every year for the next two decades.
Three things to verify before signing
Your existing lock-in clause
Most Malaysian mortgages carry a 3–5 year lock-in. Refinance early and the original bank claws back its legal subsidy, usually 2%–3% of the original loan amount. If you are still inside lock-in, work out whether the savings outpace the penalty.
The legal fee waiver in the new package
Panel banks are bundling stamp duty, valuation and legal fees into “zero-cost” packages. Read what is actually waived, and what is only deferred onto your loan balance.
Your Debt Service Ratio (DSR)
If you have taken on a personal loan or hire purchase since the original mortgage was approved, your DSR may have moved. A clean CCRIS and a tight DSR get you the best refinance rates; a stretched DSR may quietly downgrade the offer.
The OPR is doing nothing this year. That is exactly why this month is worth a look, not next month, not when rates start climbing again.
See iMoney’s panel refinance rates, Hong Leong 3.50%, RHB 3.60% and MBSB 3.70%, or book a free 1-on-1 pre-screening with iMoney’s anniversary panel.
