Author: Azizi Ali
Scratching your head to make decision on which housing loan to be taken? Lowest interest? Longest loan tenure? Shortest lock-up period? Nowadays, there are plenty types of housing loan are offered by both local bank and foreign bank.
Example like package specially designed for fresh graduate with minimum payment in the first few years, some packages are suitable for aggressive investor where featured with minimum lock-up period as their property is expected to sell off in short period; whereas some fixed interest rate housing loan packages are tailored for friends who are earning fixed income and would like to avoid the risk of changes on the Base Lending Rate (BLR) due to uncertainty of economics.. bla bla bla and many more different types of housing loan.
I assumed that you are well aware about the different types of housing loan package available in the market. The main idea of this post is to share with you that an ideal housing loan should have four characteristics as highlighted in the book shown on above by Azizi Ali. Regardless what type of housing loan package you have chosen.
The four characteristics for an ideal housing loan:
1) Interest calculated based on daily rest
2) Allowed to pay as much as you want (above min.)
3) Allowed to pay as often as you like
4) No hidden charges or fees
Congratulation! If the housing loan you have chosen meet all four characteristics on above. That mean you have a very flexible housing loan. Apparently you will look for lowest interest rate, but I think you should look beyond the low interest rate. May be I should put in this way; low interest rate is one of the factor that you need to take into consideration, but there are other factors like fees involved and the terms that you need to take care as well. Those factors are important to consider in a housing loan as well.