Home Loan Repayments can now stretch to 50 years

[sleaguepunter]

Sure they wiLL come up with an insurance poLicy to cover that 50 years' tenure.Once you go kaput, the insurance
company wiLL take over the baLance of the Loan.However, that means you have to buy a Linked poLicy aLtogether..waLau, Loan repayment+insurance premium ! !

yes... that the only way the bank can willing take up a 50yrs risk. the insurance not cheap, at least $500 a years and the premium goes up as the home owner aged.

call me black heart, i look forward to seeing this happen as ppl continue to spend without consideration.

 

[chonburifc]

Work till 75 for a pigeonhole?? Unimaginable not too long ago but it's a reality now. Thanks for the swiss standard of living.

 

[neddy]

50 years home loan.

The new meaning to the Singapore slave. :oIo: Bank slave.

How much repayment over the 50 years? :p

 

[gz0707]

John Adams (1735 - 1826) -

There are 2 ways to conquer and enslave a nation.
One is by the sword.
The other is by debt.

 

[Scrooball (clone)]

50 years home loan.

The new meaning to the Singapore slave. :oIo: Bank slave.

How much repayment over the 50 years? :p

Theis means you can sabo your kids next time.

 

[Confuseous]

"Living on borrowed time" takes on a totally new and meaningful meaning!

 

[LeMans2011]

Essentially the home is never owned. After paying for 10 years, the loan is paid off for only 5% to 8%.

 

[Papsmearer]

It is what it is. With the cost of property so high, the amortization has to stretch to 40 years. There are ways to mitgate this:

1) Make sure you have no partial prepayment penalty on your mortgage. SOme banks have it and some don't. If you are disciplined and save enough to make partial capital prepayments every year, you will not have a 50 year mortgage, a lot shorter one.

2) Consider getting MRTA because the amount of the mortgage is so high for so long. Is something happens to you, at least u have a roof over your family's head.

3) Use this type of mortgage for freehold condo or landed properties. Its useless for HDB flats.

 

[scroobal]

Japan was the first country to offer "generation" loans whose liability payments are passed to whoever inherits the property or the bank simply seizes the property. No need insurance. The loan to value ratio will be based on forecast and there will be a buffer. The Japanese had to do it because Tokyo prices was just too high.

Unfortunately such loans allow people to buy bigger property and become debt laden. The only consolation is that property prices generally trends upwards. Feel sad for the young. Till today the US is a model for home ownership where a decent home with land in good suburbs are affordable for new starts and the interest is tax deductible to encourage home ownership. The sub-prime did not screw home owners, it screwed those who held the instruments and held stocks in banks. There were a few greedy ones who got screwed with trying to game the market by signing on honeymoon rates.

Malaysians too can afford decent homes.

Wee Cho Yaw has always made good money from his housing portfolio.

 

[Prometheus888]

John Adams (1735 - 1826) -

There are 2 ways to conquer and enslave a nation.
One is by the sword.
The other is by debt.

So true .... so true... nothing like doing what the americans have done...

spend tomorrow's savings today and enslave your kids' futures with your present excesses

 

[chonburifc]

One of the best decision ever made is to pay off my pigeonhole in the early 2000s, and enjoying the rental income. Hopefully, I can take back ALL my CPF money in CASH via this income rental but that will probably take quite sometime. The actual money held by CPF, I have already written off long ago.

Don't intend to sell it at the moment, but if needed, will be selling at minimum 200 percent profit! (Should be more now).

 

[gz0707]

Essentially the home is never owned. After paying for 10 years, the loan is paid off for only 5% to 8%.

There are owners who still do not understand the debt structure and how the principal is paid out in the 2nd half and mostly at the end of the loan. When asked about the strategy for a 1 mil 35 year loan, one owner told me that he "has no plans, but will not stay there forever". when the loan is fully paid up, he will be 70 yr old. The context is of course in ever rising property prices.

I am not surprised the 50 year load has surfaced, it is the only logical choice to support increasing property prices without increased salaries.

 

[chonburifc]

Do not fall into this Leegalised housing loan trap. I am able to go into semi-retirement (more or less full retirement now) in my early 40s because I do not have the burden of debts. How can one think clearly when one have to worry about car/housing/renovation/credit cards repayments every time they collect their salary. Use the money for good investment opportunities. This happened so many times, when a good investment opportunities came and you just don't have the cash. only to see those who have the cash enjoying the profits.

Live within your means.

 

[Nik1971]

Work till 75 for a pigeonhole?? Unimaginable not too long ago but it's a reality now. Thanks for the swiss standard of living.

Thats ok, to work till 75 to pay your pigeon hole.

You know whats next? Multi generation housing loan. Example 75 years loan with the next generation as joint borrowerd

 

[johnny333]

Do not fall into this Leegalised housing loan trap. I am able to go into semi-retirement (more or less full retirement now) in my early 40s because I do not have the burden of debts. How can one think clearly when one have to worry about car/housing/renovation/credit cards repayments every time they collect their salary. Use the money for good investment opportunities. This happened so many times, when a good investment opportunities came and you just don't have the cash. only to see those who have the cash enjoying the profits.

Live within your means.

Many Sporeans are ignorant about the true cost of voting for the PAP. The PAP is bad news as they have suppressed wage increases while increasing costs in Spore.

Only have to go to JB where you can find cheap homes which cost under RM$100,000 Sporeans are only allowed to buy the more expensive homes that cost RM$500,000+ but that's still a bargain compared to HDB

 

[Jumong]

Wow! Every Singaporeans are Millionaire? Not just feel rich reading CPF statement.

Yeah man, rub it in, bro

 

[Papsmearer]

There are owners who still do not understand the debt structure and how the principal is paid out in the 2nd half and mostly at the end of the loan. When asked about the strategy for a 1 mil 35 year loan, one owner told me that he "has no plans, but will not stay there forever". when the loan is fully paid up, he will be 70 yr old. The context is of course in ever rising property prices.

I am not surprised the 50 year load has surfaced, it is the only logical choice to support increasing property prices without increased salaries.

Actually, the debt structure is largely irrelevant in singapore. Taking the example of HDB housing, in which most singaporeans live in. U can take 25, 30, 40 year mortgage, it matters not. HDB has no intention of ever fulfilling its 99 year lease to you. In fact, just looking atthe construction quality of the HDB flats, u know they will not last 99 years. The HDB's real intention is to keep u on the hook for the rest of your life. Lets say u buy a new flat and sign a 30 year mortgage. After living in it for 20-30 years, maybe even less, the HDB will come along and say that they want to tear your block down. But they will offer you a new flat at another estate and give u priority choice, but since the new flat is more expensive than your old flat, u must top up money for this flat. Hence, after u have paid off your original flat, u now have to incur a new mortgage for a flat u never wanted in the first place. Hence how long your amortization period is, is irrelevant.

 

[chonburifc]

Yeah man, rub it in, bro

Seriously, in pappies eyes, every sinkee is a millionaire and pappies will invest your money in Temasek. Principle plus (profits) should make everyone a millionaire by age of 75.

But they at least let you feel rich every month by allowing you to read cpf statements.

 

[chonburifc]

Actually, the debt structure is largely irrelevant in singapore. Taking the example of HDB housing, in which most singaporeans live in. U can take 25, 30, 40 year mortgage, it matters not. HDB has no intention of ever fulfilling its 99 year lease to you. In fact, just looking atthe construction quality of the HDB flats, u know they will not last 99 years. The HDB's real intention is to keep u on the hook for the rest of your life. Lets say u buy a new flat and sign a 30 year mortgage. After living in it for 20-30 years, maybe even less, the HDB will come along and say that they want to tear your block down. But they will offer you a new flat at another estate and give u priority choice, but since the new flat is more expensive than your old flat, u must top up money for this flat. Hence, after u have paid off your original flat, u now have to incur a new mortgage for a flat u never wanted in the first place. Hence how long your amortization period is, is irrelevant.

Yeap, pappies don't like quitters like me who do not make any gst, cpf or income tax contributions.
Some more have to give me sgd 250 on 1st august.

 

[Jumong]

Actually, the debt structure is largely irrelevant in singapore. Taking the example of HDB housing, in which most singaporeans live in. U can take 25, 30, 40 year mortgage, it matters not. HDB has no intention of ever fulfilling its 99 year lease to you. In fact, just looking atthe construction quality of the HDB flats, u know they will not last 99 years. The HDB's real intention is to keep u on the hook for the rest of your life. Lets say u buy a new flat and sign a 30 year mortgage. After living in it for 20-30 years, maybe even less, the HDB will come along and say that they want to tear your block down. But they will offer you a new flat at another estate and give u priority choice, but since the new flat is more expensive than your old flat, u must top up money for this flat. Hence, after u have paid off your original flat, u now have to incur a new mortgage for a flat u never wanted in the first place. Hence how long your amortization period is, is irrelevant.

What a crispy summary of PAP's modus operandi !