Recently Bank Negara Malaysia announced that the maximum limit of repayment for property would be at 35 years and personal loan would be capped at 10 years.
This move is related to recent numbers of house hold debts in Malaysia which has reached a horrifying figure. The latest move has made a significance impact in the loan industry in Malaysia.
House Hold Debts in Malaysia
Malaysians have long been using mortgages to sustain their needs. The few factors debts are common house and car purchase. While low interest and requirement has boost house purchase and push house prices beyond affordability, Malaysians are known to pay the highest prices for vehicle ownership in the world.This would be sustainable as long as interest rates remains low.