superzheny
Senior Member
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- Dec 20, 2011
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Sorry if this topic had been discussed before.. tried looking but could not find information relevant to the current situation
I am getting a private property for own stay, intend to stay there for 5-8 years, thereafter sell with hopes to upgrade.
At current 2.75% fixed bank loan rate, if I take a 25 year tenure, my TDSR is only about 11-12%.
If interest rate were still 1.x%, I think it will be a no brainer to max out my tenure. However with interest now at 2.75%, will it make sense to go for a shorter tenure, say 15 years?
Monthly cash flow is not a major concern, at 15 year tenure my TDSR is 15%. My main goal is to balance interest repayment with opportunity cost (alternative investments, time value of money etc)
I am getting a private property for own stay, intend to stay there for 5-8 years, thereafter sell with hopes to upgrade.
At current 2.75% fixed bank loan rate, if I take a 25 year tenure, my TDSR is only about 11-12%.
If interest rate were still 1.x%, I think it will be a no brainer to max out my tenure. However with interest now at 2.75%, will it make sense to go for a shorter tenure, say 15 years?
Monthly cash flow is not a major concern, at 15 year tenure my TDSR is 15%. My main goal is to balance interest repayment with opportunity cost (alternative investments, time value of money etc)
