1.0Ziet Investshttps://www.ziet.co/v2024Ziethttps://www.ziet.co/v2024/about-us/rich600338<blockquote class="wp-embedded-content" data-secret="E4ibMCKprl"><a href="https://www.ziet.co/v2024/newsletter/whos-controlling-our-house-loan-interest/">#20 Who’s Controlling our House Loan Interest?</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.ziet.co/v2024/newsletter/whos-controlling-our-house-loan-interest/embed/#?secret=E4ibMCKprl" width="600" height="338" title="“#20 Who’s Controlling our House Loan Interest?” — Ziet Invests" data-secret="E4ibMCKprl" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script> /*! This file is auto-generated */ !function(d,l){"use strict";l.querySelector&&d.addEventListener&&"undefined"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),o=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),c=new RegExp("^https?:$","i"),i=0;i<o.length;i++)o[i].style.display="none";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute("style"),"height"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):"link"===t.message&&(r=new URL(s.getAttribute("src")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",function(){for(var e,t,s=l.querySelectorAll("iframe.wp-embedded-content"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute("data-secret"))||(t=Math.random().toString(36).substring(2,12),e.src+="#?secret="+t,e.setAttribute("data-secret",t)),e.contentWindow.postMessage({message:"ready",secret:t},"*")},!1)))}(window,document); </script> https://www.ziet.co/v2024/wp-content/uploads/2024/09/Whos-Controlling-our-House-Loan-Interest-featured.jpg25001406Timely updates to supercharge your wealth-building journey! TABLE OF CONTENTS Who’s Controlling our House Loan Interest? So you’re probably paying around 4% for your house loan, but ever wonder, who gets to decide how much interest you should be paying for your house and car? Well, the short answer: it’s the banks, but there’s more. Effective Lending Rate The effective lending rate is the total rate a borrower pays on a loan. It is composed of two main components: So, it’s Reference Rate + Spread = What You Pay. Reference Rate When it comes to house loans in Malaysia, the key reference rates you’ll hear about is the Standardised Base Rate (SBR). Here’s what you need to know about them: Reference rates are floating rates: When these reference rates go up or down, the interest rate on your loan also adjusts accordingly, eventually the change in interest rates will reflect in your monthly repayment amounts. Spread The spread is an additional rate added on top of the reference rate, and it’s influenced by several factors: And they are fixed rates: The spread rate remains constant throughout the loan tenure. No matter how the economy fluctuate, the spread is fixed throughout your repayment once you and the bank both agree on the rates. Tips to Lowering your Loan Interest Rates The reference rate is really not something within our control, so to get a loan with better interest rates, work on the lowering the spread instead! Other than interest, what else is eating your disposable income? Tax! I’ve been wondering this for a long time – between average Malaysians and Singaporeans, who is paying more taxes? Do you have the same questions sometimes? Watch my video to find out! Word of the Week: Tax-to-GDP ratio Definition: The Tax-to-GDP ratio is a financial metric used to compare a country’s tax revenue to its Gross Domestic Product (GDP). This ratio illustrates how much a country’s government collects in taxes relative to the size of its economy. A higher ratio indicates a higher tax burden, meaning the government is collecting more taxes compared to the size of the economy. The Tax-to-GDP ratio is important in analyzing the efficiency of tax collection and the extent of government intervention in the economy. A lower ratio could suggest a more business-friendly environment with lower taxes, while a higher ratio might imply more government involvement through public services funded by taxes. Tax-to-GDP ratios around the world: Key Economic Dates: What I’ve been reading: Here are the top stories that caught my eye: You’re all caught up! If you enjoyed today’s newsletter, do share it with your friends and family! If this email was forwarded to you, consider subscribing to receive them in future! And if you have any questions, don’t hesitate to reach out to me by replying to this email. We are also delighted to receive your feedback. Cheers,Ziet