Bank Negara Malaysia's Overnight Policy Rate (OPR) is the benchmark rate that determines Malaysian home loan interest rates. At 3.00% in 2026 after being held stable since May 2023, understanding OPR's impact on your mortgage is essential for financial planning.
What Is the OPR?
The OPR is the rate at which banks lend to each other overnight. BNM uses it to control inflation and economic growth. When OPR rises, banks raise their Base Rate, increasing mortgage costs. When it falls, monthly payments drop. The OPR directly affects every variable-rate home loan in Malaysia.
OPR History & Current Rate
| Date | OPR | Change |
|---|---|---|
| July 2020 | 1.75% | -0.25% (COVID) |
| May 2022 | 2.00% | +0.25% |
| July 2022 | 2.25% | +0.25% |
| September 2022 | 2.50% | +0.25% |
| November 2022 | 2.75% | +0.25% |
| May 2023 | 3.00% | +0.25% |
| April 2026 | 3.00% | Unchanged |
Monthly Payment Impact of a 0.25% OPR Change
| Loan Amount | +0.25% OPR rise | -0.25% OPR cut |
|---|---|---|
| RM200,000 | +RM26/mth | -RM26/mth |
| RM400,000 | +RM53/mth | -RM53/mth |
| RM600,000 | +RM79/mth | -RM79/mth |
| RM800,000 | +RM105/mth | -RM105/mth |
Model different OPR scenarios on your loan using our ๐ Mortgage Calculator.
BNM OPR Outlook 2026
Most economists expect BNM to hold OPR at 3.00% through 2026, with possible cuts in late 2026 if inflation eases further. A 0.25% cut would save a RM500,000 borrower approximately RM66/month or RM792/year.
Our editorial team specialises in Malaysian personal finance โ covering loans, taxation, insurance, EPF, and Islamic finance. Every article is fact-checked against Bank Negara Malaysia (BNM), LHDN, and major Malaysian bank publications. We reference our calculators (which use industry-standard formulas) to ensure consistency between our written content and tools. Learn more about our methodology โ