Owning a home is not a common occurrence. In fact, it is a very commendable achievement. Owning a home is not easy, it leads a life of savings, and since most of us don't have enough cash to wake up and decide to buy a home on a given day, owning a home also carries great financial responsibility. Mortgage loans have long terms and large amounts to pay.

The maximum tenure of a mortgage loan can be up to 30 years. Now this in itself is a fairly long period of time, but extending tenure can bring the added benefit of reducing monthly fees. In the long run, the borrower will have paid more through interest, but with a lower payment amount, it becomes easier to manage payments and avoid finances and monthly budgets.

Holding parameters:
The maximum tenure available when it comes to mortgage loans offered by most banks is 30 years. However, this number is not an absolute number, and depending on the age of the applicant, the offered charges may be much lower. Mortgage loans are generally made in such a way that at the end of the loan term, the applicant's age does not exceed 65 or 70 years. Therefore, if an applicant gets an initial advantage over home ownership and succeeds in making a down payment and gets a loan at the age of 25, the maximum tenure of the loan offered is 30 or 35 years, which means by the time the applicant is 55 or 60 years old, the loan would have been repaid. However, if the applicant decides to apply for a loan before turning 45, the maximum duration of the loan offered will be only 20 to 25 years.

Maximizing loan tenure:
Although the Singapore Monetary Authority has restricted the maximum tenure of home loans in Singapore to 35 years, the applicant is unlikely to receive this tenure. The age of the applicant at the time of applying for the loan is one of the decisive factors in obtaining a prolonged tenure. In such cases, applicants can apply for a joint application loan. Joint application loans can give applicants a longer tenure if they jointly sign someone younger than themselves. For example, a 50-year-old applicant can opt for a joint mortgage loan with his 25-year-old son and take advantage of a longer tenure closer to the 30-year mark.

Benefits of longer holdings:
Sure, longer holdings result in more interest paid, but they do have certain advantages. First, an applicant can lower his monthly installments, allowing him not only to better manage payments, but also to save more and probably close the loan early. This generally attracts an early settlement fee, but still saves much more interest in the long run.

Investors can also benefit from longer holdings. Longer tenures lead to smaller monthly payments and higher rental returns, https://www.cambridgehomeloan.com/vahomeloan/.

Author's Bio: 

Maximizing the tenure of mortgage loans