I think it's depend, if you want to sell the property, I think we don't have to settle our mortgage as fast..but if you want to keep keep for your own stay, ya maybe :D Looking for expert in this as well !
If property is for own stay, yes. If for rental yield returns. no.
If for rental yield reture, best to drag the loan repayment tenure as long as possible or dump a huge downpayment to lessen the monthly installment.
Agree with Ngoi, if have overdraft facilities, or can refinance to acquire more cash for business venture or buy another property.
Just my 2 cents.:^)
You are most welcome, remember that the longer you take to repay the bank loan. the higher the total purchase price you will eventually pay.
For example, if you take a RM350,000 bank loan at 4.5% interest rate with repayment period 35 years... (RM1656.4 installment)
At the end of the loan repayment of 420 months, you are effectively paying double... close to RM350,000 in interest!
One tips to save on interest, using the same example above. If you make fortnightly (every 2 weeks) payments of RM828.2 instead of RM1656.4 per month. You effectively reduce your total interest by a huge chunk, and definitely pay off your bank loan in less than 35 years!
RM1656.4 X 12 months = RM19876.8
RM828.2 X (52weeks a year/every 2 weeks) = RM21533.2
I believe most bank charge daily interest on bank loan, so the more frequent and any extra payment (loan principle payment) to the bank in a year, will reduce total interest paid over the same period.
There is a lot of Amortization Schedule table online that you can refer to. Definitely lower total interest paid if pay installment twice a month instead of once a month.
If followed through the entire tenure, will be sure to pay off loan sooner than expected. Maybe can negotiate with the banker the next time we take a loan for investment?