Thank you Dennis, for warning the public against the adverse consequence of housing debt overload in CNA:
"If you have problems paying the installment right now when you are much younger and your income is much higher, I think you will have a bigger problem as you age," said Mr Ng.(quoted our sifu, Dennis Ng's comment on CNA on
http://www.channelnewsasia.com/stories/ ... 58/1/.html
50-year home-loan a 'gimmick': Khaw
my paper, Monday, Aug 06, 2012
SINGAPORE - For those thinking of taking up long-term loans in order to buy their dream home, National Development Minister Khaw Boon Wan has this message for you: Don't do it.
Instead, Singaporeans should exercise prudence, especially amid the uncertain global financial climate, he said.
He advised against taking up 50-year housing loans, which at least one bank here began offering recently. Mr Khaw said: "There is now some gimmick, a bank offering 50-year loans. Please don't fall for that. It doesn't make sense."
He was speaking to reporters in Woodlands Drive yesterday, during the launch of the National Community Emergency Response Team (Cert)-on-Patrol Week for Sembawang GRC.
Last month, The Straits Times reported that United Overseas Bank had introduced a 50-year home loan. The report said that borrowers above a certain age are not eligible.
Other banks, such as OCBC, offer a maximum loan period for private and HDB homes of 40 years, or up to the age of 75, whichever is earlier.
Mr Khaw said it is important that people live within their means and buy only what they can afford.
He said that he first rented a room in a flat when he moved from Malaysia to Singapore. He then bought a small 30-year-old house in a private estate and upgraded subsequently. Mr Khaw said: "If you want to immediately come out of school and think you want a five-room flat, and...a 50-year loan will help you achieve that, I don't think that is very wise."
Take-up rates for the loan have been low, a "good sign that Singaporeans know we should always be prudent", he said.
Dennis Ng wrote: S'pore homebuyers likely to opt for shorter term mortgage
By Millet Enriquez | Posted: 23 July 2012 2343 hrs
Dennis Ng, who is the founder of mortgage consulting firm HousingLoansSG.com, said: "A longer loan repayment period may make sense for investors because the investor is always looking for return on investment. So the less capital they put into the property, the higher their return."
HousingLoansSG.com, which sees 20 to 30 enquiries a day, said around 70 per cent of its clients opt for 25 to 30-year loans, while 15 per cent go for the 30 to 35 year loans. The rest prefer terms of less than 25 years.
"If you have problems paying the installment right now when you are much younger and your income is much higher, I think you will have a BIGGER Problem as you Age," said Mr Ng.