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35-year housing loan period more than enough

Sep 20, 2016

Bank Negara says the 35-year maximum period for housing loans is more than enough for borrowers to settle their loans by retirement age. 

It told The Star, if the housing loan is offered when a borrower is 25 years old, a 35 year loan would be completely settled by the retirement age of 60. 

This, as the central bank dismissed suggestions to raise the lending period to 40 years.

It adds extending the period would just add to the total cost of financing, without significant improvements in the affordability of one's monthly instalment.