Tuesday, February 16, 2010

Bank Loan VS Government Loan

Aku tahu tindakan mengenepikan government loan untuk membeli rumah, bukanlah tindakan yg bijak .. The best loan in Malaysia is government loan with fixed rate 4% ..Guaranteed fixed interest rate for the entire loan period or up to 30 years. Absolutely no fluctuations in interest rate. The only one opportunity to lock in at these fantastic low fixed rates for up to 25-30 years.

still, I have to choose bank loan, I don't have other options coz government allocates my maximum loan range far away from the current price of puchong 2 storey terrace house, I don't have enough cash money.. & maximum period is merely 25 years based on my retirement age from government... If I choose bank loan it can cover the whole amount of house price & I can choose 40 years period of home loan.. Take a longer tenure to ensure lower monthly instalments repayment so that it will not be burdensome should I be financially tight in my whole life for years. After counting with loan calculator for my targetting house, I'll be able to pay monthly if it is 40 years period. Of couse I've considered my pension after retirement. But the risks is fluctuating BLR ..No one can actually predict what the interest rate will be in the next twenty (20) to fourty (40) years. Historically, interest rates for home loans have certainly seen their share of ups and downs over the past years.

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