I know many of my peers are at the age where they are considering making either their biggest or 2nd biggest investment in their lifetime.
And they are : Properties and Vehicles.
And most of the time, we all need a loan to purchase these items as people usually do not hold so much cash.
Well, even if you do have enough cash, take a loan anyway, why bear all the risk on your own when you can use the bank's money to buy something you want. You could be better off investing in something that could bring higher returns than your loan interest rate.
Well, when you are shopping for a loan, you maybe bombarded with tonnes of brochures and flyers from different banks.
I usually like to do my own calculations well, so at least I at least have a benchmark to use when comparing loans.
Here are the 2 websites i use to calculate loans:
Housing Loans: eFunda (Mortgage)
Car loans: Autoworld
For housing loans, I know the rate usually floats according to the BLR, but since we cannot predict the movement of BLR, you would have to assume the rate is fixed for however long your tenure is.
Hence I do not use the lowest rate as it would not be a fair indicator. I usually use about 5-6% as the interest rate.
That being said, enjoy shopping for loans!
Boodyboy, out!!
