Financial planner Robert Foo says the cost of the deferment depends on the loan amount, at which end the borrower is in currently in terms of the loan tenure, and how the loan is structured. “A housing loan borrower or anyone who has a bank loan cannot say, ‘I don’t have to pay interest (during the six months). Like Kim, he is relieved there is this option for his housing loan. The interest for his credit card is about 18% per year, which is higher than his 4.37% a year housing loan. He has only one housing loan and believes that once his credit card bills are settled, he will focus on reducing his housing loan amount as fast as he is able.

Source: The Star July 04, 2020 00:45 UTC