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    14 September 2012| last updated at 11:55PM

    Q/A1

    By Michael Yeoh, financing consultant

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    Gregory@Cyberjaya: I have just started work and in a few years plan to buy my first home. I was told by some friends that I should take out a loan for as long as possible as the monthly repayments are more affordable. However, I am concerned that this will mean I will end up paying more by the end of that tenure. Please advise what criteria to look out for when deciding on suitable loan tenure.

    RED: The first thing you should look at is how much you can afford to pay for the loan instalment. There are many free mortgage calculators on the Internet that you can use. Banks can lend up to 40 years or age 70, whichever is earlier. The more years you take, the more interest you will have to pay. Do some cash flow analysis on your income and expenses before deciding how much you can afford to pay.

     

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