LOAN TENURE

 

What is LOAN TENURE

 

Loan tenure, is the total repayment of years to settle housing loan.

Most of the time, mortgage loan tenure is standard throughout all the bank, which are set by Bank Negara Malaysia. It follows the individual age with limit 70 years old max 35 years tenure.

The limitation is to prevent people borrowed more than their capability.
Standard mortality in Malaysia for women is 85 years old, so when grandma qualify for the loan, after 5 years it became non performing loan as the borrower default due to death of old age.

e
Example:

A

Individual A age 50 wish to borrow loan
Max loan tenure will be 20 (70-50)

B

Individual B age 34
Max loan tenure will be 35 years MAX

C

Individual C age 25
Individual C age 50

joint borrower, so what’s their max loan tenure?

This is subjective, so if lets say Individual C has strong income, bank will take his age into account and the max loan tenure would be 35 years

If Individual C has a very weak income profile, individual C age will be taken into account, the max loan tenure would be 20 years max.

Any inquiries do drop down below

cheers 🙂

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