KUALA LUMPUR (Sept 21): In response to requests for an extension in the tenure of housing loans to up to 40 years, the Real Estate and Housing Developers Association (REHDA) said the current 35-year limit is more than enough. If we were to stretch it, it might be a strain on the borrower," said REHDA president Datuk Seri FD Iskandar. However, he said if certain mechanisms were allowed — for example the allowance of parents as guarantors of a purchaser — an extended loan tenure could work. It cited as example, a 35-year housing loan that is offered to a 25-year old borrower would extend up to the retirement age of 60 years old. Increasing the loan tenure to 40 years will only serve to add to the total cost of financing, without significant improvements in the affordability of one's monthly instalments, BNM said yesterday.

Source: The Edge Markets September 21, 2016 06:56 UTC