About 2 weeks ago, UOB announced that they were able to give loans of up to 50 year tenures. Since then, Minister Khaw Boon Wan has come out to criticise it as a gimmick and urged home buyers and owners not to fall for it. So, is it a gimmick as Minister Khaw says, or is there a case for it?
Before we go there, let’s take a look at the conditions for the loan. Besides the usual income/net worth requirements, borrowers have to be below 80 years old at the end of the loan tenure. If the property is leasehold, it must have at least 35 years left on the lease at the end of the loan tenure.
Continue reading “The 50-year loan: Gimmick or Gimme?”