Your Questions Answered Here › Homeloan – Advisable to Settle Early or Never Settle At All
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Edwin Cheah asked 5 years ago

Dear Mr CF Lieu,

For a person at age 50, say taking a homeloan of 20 years.Is it advisable to settle the home early by prepayment and save much interest or never settle the homeloan ie let the house appreciates in value over next 7 to 10 years and has option of refinancing and cash out a portion of money to buy say car as the house will automatically settled once one died and beneficiary no need to repay the homeloan as covered by MRTA.

1 Answers
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ERIKA Staff answered 5 years ago

Edwin it depends on your cash flow needs really, and whether the property actually generates rental income. Without these other details, it is not possible to give you any proper advice.

Edwin Cheah replied 5 years ago

Property generating market rate rental income enough to cover loan repayment.Cash flow sound.