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I plan to take up $300000 bank loan. Please advise is it better to take a shorter loan tenure say 20years as the total payable interest for the loan tenure will be lower compared to say 30years? If i intend to do full redemption earlier, is it better to take up 20years loan as the interest payable will be lower compared to 30years? Appreciate the guru's advice.
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1 Answer

Darren Lim
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Hi Ms Claudia,

This topic is very subjective because you will have to weigh how comfortable you are repaying the monthly instalments against the total amount of interest you will pay.

To be honest, a shorter tenure is definitely a better choice monetary wise as you will pay lesser interest. However, your monthly instalments will definitely be higher if you take a shorter tenure.

Thus, you will have to weigh this 2 factors carefully before you make a decision.

Do feel free to give me a call if you need help.

Darren Lim
Mobile: 91443311  Read More
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