Caveat Emptor- Endless housing loan

Caveat Emptor, this is the word derived from Latin's word which has the meaning of "Let the Buyer Beware" . It defines all buyer must be very careful in consuming, because not all of the seller is going to  Let us look at the case which is happened in 2 years before in Malaysia. This news is extracted from a popular business newspaper, Utusan Konsumer, Jan-Feb, 2009.

Case :        
           This person, called Shanti (Not her real name), was borrowing a housing loan from a bank (no specified). The amount she borrowed from bank was RM40,500 and her maturity of repayment is 20 years., monthly instalment is not specified, maybe RM300++.
         
  After 16 years later from her first repayment, she found out that she still owes the an outstanding balance RM36,576 when the bank sent her a housing loan statement in December 2007. The Bank Revised her monthly instalment to RM456 which is higher than her past repayment, besides extend her maturity to become 26 years. 
           16 years to pay most of the interest rather than the principal RM3924. What about the rest? Can she finish repay the outstanding balance RM36,576 to the within 4 years? Undeniable, the answer is NO.


                  How can she do? Can she sue the Bank  for a fraudulent In this way? 
  
My Opinion:

In Fact, BNM (Central Bank Malaysia) notified that "in case of a floating rate loan, you should also note that your monthly increase substantially when interest rates("BLR, Base Lending Rate, announced by government, latest rate is 5.80%" quote from Banking info) go up."
      
            BLR  is a fixed rate set by government and all financial institution should follow the rate and offer a new interest rate to customer.Mostly, it is written in the housing loan contract, unless bank offer a fixed rate which is not following the central bank. Mostly, housing loan will be written in term of the interest rate offered.For example: BLR-2%,  the interest rate. When BLR increase therefore interest rate increase. BLR is independent.

            You should notice that when BLR  increases, Interest portion served in your repayment become more, therefore you should have to adjust your a higher monthly instalment. In a sense that, BLR will fluctuate and affect the interest and our tenure. Yet, why do we still pay the fixed monthly amount set by financial institution? whenever you do not settle the housing loan, the bank still has a right to confiscate for auction.

          By right, you have the right to ask the solicitor in charge of housing loan to explain the terms of contract one by one, if consumers do not understand the terms.
            
            You can refer to the web-site, URL as below: http://www.bankinginfo.com.my/02_know_your_products/0202_applying_for_loan/housing_loans.php?intPrefLangID=1&

Fact:
         She must read the contact of housing loan before the contract is  signed, approved and legally binding. 
Usually, BLR is listed in the contract, but most of the borrowers In fact, she should know the how is the calculation of interest going during their repayment period. By right, she should be carefully to select different housing loan products and go through details of the terms in order to protect themselves from overcharging of any bank. Bankers are always not responsible to tell every term to their customer.