Myra Guide To Housing Loans

Time To ‘Merisik’ The Bank : What Kind Of Loans Are Available?

Category: Step 2: Land Your Loan | Tags: Banks, Finance, Home Loans, Loans, The Journey

35 years can be a long relationship to be in with a bank. There are many banks offering so many various types of loans up till the point they get rather overwhelming. 

So before you jump in, do your research and investigate, and make sure you choose very carefully the type of loan you’re getting into bed with. It should be most beneficial to you so that you won’t regret your decision later on. Because unlike marriages, you can’t divorce your bank loan

So check out these 5 loans that are the most popular!

Term Loans:

You make the same payment amount every month to pay off your loan but if you complete your payment earlier in the first 3-5 years, you’ll be charged an average penalty fee of 3%. If you have a stable job with a predictable income, this might be easier for you to plan your monthly expenditures!

Fully Flexible Loans:

This loan grants you more freedom because you can make additional payments whenever you want. The more you pay off your loan, the less you pay in total interest over the duration of your loan. If you have a job that lets you earn extra cash frequently, a fully flexible loan might be the one for you!

Semi-Flexible Loans:

It’s a combination of a term loan and a fully flexible loan. You still have a certain amount to pay every month, but you can also pay extra whenever you have the extra ca-ching to help pay off your loan sooner. But keep in mind that there are more T&Cs you have to consider as it depends greatly on what you can afford every month.

Islamic Loans:

This loan is compliant to the Syariah law and works on an interest-free transaction as Islam does not allow the charging of interest. So what Islamic banks will do is use the concept of Murabahah, “buy” the property from you, and rent it back with extra fees. Most Muslims will opt for Islamic home loans because of this.

Government Loans:

This loan is only for government servants and it offers the lowest fees and interest rates! So if you’re a government servant, this is the best choice for you. What does it entail, you may ask? Find out all about government loans here! P.S: Thank you for your service to this country!

So besides the length of your loan or the interest rate that’s offered, here are 2 things you should always keep in mind.

  • Longer loan = lower monthly repayments but has a higher total interest. 
  • Shorter loan = lower interest in total but a higher monthly repayment.

So if you’re having a hard time choosing the best loan, and need maybe a second, third, or fourth opinion, I’m your girl. I’ve done my homework, so if you’d like a chat to talk things out, drop me a text!

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