For many, financing is essential in achieving the dream of homeownership. After signing the loan and Sale and Purchase Agreement (SPA), you’re on your way to living in or renting out your property.
While owning a home is a significant milestone, it also marks the beginning of a long-term financial commitment. Some view property loans as “good debt” when the investment is solid, while others prefer to clear their debts as quickly as possible.
Being debt-free is certainly appealing, right? Here are some strategies to help you pay off your Johor Bahru home loan faster.
Opting for a shorter loan tenure can significantly reduce the interest you pay over time. For example, with a RM500,000 loan at a 3.9% interest rate per annum, the monthly instalment for a 15-year loan would be around RM4,000, while a 20-year loan would cost you about RM3,200 monthly. This could save you more than RM80,000 in interest.
However, before refinancing, ensure that you can manage the higher monthly payments. Failing to do so could lead to financial strain, missed payments, or even defaulting on the loan, which could negatively affect your credit score and future borrowing options.
Paying extra on your mortgage each month or year can help reduce the loan principal faster, ultimately saving you money on interest and allowing you to settle your mortgage sooner. However, it’s important to confirm with your bank the terms and conditions related to making additional payments.
Loans such as semi-flexi or full-flexi options typically permit extra payments beyond the standard monthly instalment and allow you to pay down the principal more quickly.
That said, keep in mind that semi-flexi and full-flexi loans might come with higher interest rates compared to other mortgage options.
If you have an EPF (Employees Provident Fund) Account 2, you can use the funds to reduce or fully pay off your home loan. To qualify for this withdrawal, you need to meet the following conditions:
*EPF-eligible residential properties include bungalows, terrace houses, semi-detached homes, apartments, condominiums, studio apartments, serviced apartments, townhouses, SOHO units, or shop lots with residential components in Malaysia.
The type of house worth taking a loan for ultimately depends on your personal preferences, goals, and lifestyle. While some may favour high-rise apartments, others might prefer landed homes in Johor Bahru.
Regardless of your choice, it’s important to consider key factors such as safety—opting for properties in guarded neighbourhoods. Location is another critical aspect; look for homes situated near essential amenities like retail outlets, schools, and major highways.
Comfort should also be a priority. For instance, Meridin East offers double-storey terrace houses designed to provide a peaceful and serene living environment. These homes are well-suited for multi-generational living, with spacious interiors and thoughtful layouts that cater to a comfortable lifestyle.
Meridin East offers lifestyle-focused facilities that enhance the living experience for its residents. It features the 9-acre Mulberry Lake Park, along with open spaces and outdoor amenities, including a 16.6 km jogging and cycling track.
Strategically located, Meridin East is close to essential amenities such as retail outlets like Lotus’s Kota Masai and Econsave, educational institutions like SJK (C) Ladang Grisek, and healthcare facilities like KPJ Johor Specialist Hospital and Regency Specialist Hospital.
With its comprehensive facilities and convenient location, Meridin East stands out as one of the top choices for homebuyers in Johor Bahru. Don’t miss this opportunity—contact us today to learn more about Meridin East!