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Would like to know if it is possible to stretch the mortgage loan repayment tenure up to 40 years and beyond?

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35 years max or until 60 years old, whichever come first. 

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Apply to both New construction / Subsales?

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same for new project or subsales

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i see. So if it is joint ownership... it applies to the youngest or oldest co-owner?


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normally will follow the younger person age, depends on who is the main applicant

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Heard that the general rule of thumb is loan repayment up to borrower age 65 years old or 35 years tenure... whichever comes first.

Ofcourse your credit rating need to be good as well.

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I wonder if there is a minimum tenure and amount for a mortgage? The bank has got to make money, one way or another charging you interest. That is why there are lockin periods. 

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I think the min lock in period is 3 years. There's no min tenure though, just settle it within 5 years and sell it without getting RPGT if i'm not wrong but I don't have that capability to do so, so getting the longest has the lowest int rate.

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@JohnL 

I hope to get loan tenures up to 100% and 50 years repayment tenure. But that will never happen. In our dreams only. Haha

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Minimum tenure is 5 years if not mistaken.. some is fixed loan, meaning locked 5 years and some without the lock in period

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I can see that if the loan tenure is too short. The bank would like to lock in earning a couple of years interest from you. Just need to pay the penalty if you insist for early settlement. 

Ofcourse there is the RPGT consideration if you plan to sell your property in a hurry. 

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@domng if the tenure is too short bank will charge slightly higher interest rate.

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@6011_3531_5354 

Will it reach a point where we take a 5 year loan tenure and the lock in period is 5 years as well? All with higher interest :^)

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@domng Not really all banks will locked you for 5 years.. some can be no locked in period as well.. Interest will be slightly higher than long term loan but not really big different..

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@mingkiat 

If it is for an investor who plans to flip the property... yes it does not make a lot of difference... as long as rental yield able to cover the mortgage, as long is loan approved...

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@domng yes, you are right. Nowadays loan terms are flexi.. If you kena jackpot of 2 mil, just take part from your jackpot there and pay for whatever amount that been disburse and bank wont charge you the interest alr one...

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@mingkiat 

Yes, Flexi loan gives you repayment flexibility. But at the end of the day, the bank will not lose money no matter what happens. That is how banks operate, and investors still need banks to approve their mortgage. 

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@domng Of course, no one will do lose money business.. haha


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@mingkiat 

That is why some people turn to Peer-to-Peer lending... where they cannot possibly secure a loan from the bank for various factors... they turn to their "peers" with cash to spare.

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for me i will get the longest tenure to maximize my cash on hand if I want to get positive cash flow or flipped in future.

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Loan are depends on everyone preference.. Bank also hope everyone take longest loan so can earn more interest from you mah.. haha 

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@mingkiat 

Bank can give the longest loan with low installment and earn more interest ONLY if the the owner pay the mortgage every month... nothing more and nothing less. That is why i am hoping to get 50 years repayment, 100% financing. haha