Loan tenure, is how many years you can pay your borrowed amount to the bank?
Most of the time, mortgage loan tenure is standard throughout all the bank, which are set by Bank Negara Malaysia. It follows the individual age with limit 70 years old max 35 years tenure.
The limitation is to prevent people borrowed more than their capability.
Standard mortality in Malaysia for women is 85 years old, so when grandma qualify for the loan, after 5 years it became non performing loan as the borrower default due to death old age.
Individual A age 50 wish to borrow loan
Max loan tenure will be 20 (70-50)
Individual B age 34
Max loan tenure will be 35 years MAX
Individual C age 25
Individual Ca age 50
joint borrower, so what’s their max loan tenure?
This is subjective, so if lets say Individual C has strong income, bank will take his age into account and the max loan tenure would be 35 years
If Individual C has a very weak income profile, individual C age will be taken into account, the max loan tenure would be 20 years max.4