If klibor rate increase, my monthly installement increase too?



New Member
Recently I bought a house, I was told to get klibor loan, but I am actually a bit worry abt this KLIBOR, what if the rate goes up. I may have problem to pay more monthly installment. I have talk to Hong Leong bank home loan officer, they advice me on this matter. According to them, let said I started the loan at 1july 2014, assume the klibor rate is 3.67% at 1 july 2014 and monthly installment is RM1500 for 30 years. For the first 3 mths, the interest rate would be stick to 3.67% until 1 Oct 14. Let’s said 1Oct 14, the rate increase to 3.7%, it actually did not affect my monthly installment, I still pay RM1500 per mth, according to the bank officer, worse come to worse, if the rate keep going up, the worse case is I have to pay in longer tenure, but it won’t affect my monthly amount to pay. If economic damn bad, I may need to pay longer like 35 years or more. If the economic is good, I still pay RM1500/mth, the extra money save from the inatrest will offset the principal loan, which I may end up pay shorter than 35 years.