4 Benefits of Opting For a Longer Loan Tenor

New: 4 Benefits of Opting For a Longer Loan Tenor

By Jennifer Yeap (guest contributor) Buying a home is probably the biggest financial decision you will make in your life, and one that binds you to a long-term financial commitment. You should thus plan the loan repayment, loan tenure, and other costs associated with owning a new home before you commit to buying a home. When considering home loan options, many Singaporeans think a shorter loan tenure allows the home owner to pay the loan off faster and, therefore, reduce the amount of interest payments. Many home owners do not wish to be paying their debts till they are 65 or even 75. How to Decide On Your Home Loan Tenure Let’s look at a scenario featuring a savvy property owner. Assume a loan amount of SGD1 million at an annual interest rate of 2%, and the home owner can choose from a loan tenure of 30 years, 20 years or 10 years. Note: A savvy property owner would usual...

Full article: https://www.propwise.sg/4-benefits-of-opting-for-a-longer...