Correct, normally banks will automatic prolong the tenure and inform the borrower by writing.
However, this make thing worst as borrowers are paying more interest end of the day.

What borrower actually should do is to maintain the tenure, so that don;t pay extra interest.
Of course, provided your cash flow is allowed.

that is why when BLR increase, bank stock counter also shot up, more profits earns.

Loads of people here thinks crash ala US during the subprime crisis.

You know, like in Las Vegas, Miami or Detriot.

Firstly, I think property prices will likely correct itself to the level that normal people could maybe afford them. There is still demand for props in this country, just not at this kind of high prices. At what level of correction, well we will have to wait and see.

Secondly, unlike US banks, our banks did not lend out money for mortgages recklessly, the US banks lent out billions to NINJA borrowers. Our banks are much more strict and BNM did a good job controlling them for the past few years.

Thirdly, yes there is demand from overseas for our props. Problem would be the anti foreigner actions taken by the government to stop prices from rising further, like the 1 million bar. Foreigners don't really invest that much here. Around 500k or so the foreigners are interested.

It may surprise you that despite all the griping about unfairness, many Malaysians decide to keep their citizenship instead of relinquishing it. So many also invest props here because to them it is cheap. Whether they come back is another story.

How much it will correct, I think we will know next year. If I knew, I would be a freaking millionaire already....

60 percent is highly unlikely.

Government recklessness has no real bearing on prop prices really. That is a different subject altogether.

Question is whether the banks itself is reckless like the US did and whether there is demand for housing.

The government may have its issues, banks have their own issues.

The government when short of money will impose gst, raid the EPF if necessary, and cut subsidies, increasing prices, like what it is doing now.

Say what u will about the government, but ain't stupid.

They are not going to crash the system and trigger a depression.

The banks will be fine. Our economy needs the banks to keep running

The civil servants will get paid, only the private sector people like us will suffer only.

That is why the government is different and the bank is different.

If the bank is reckless, it will need the gomen to bail them out like the us.

Anyway, if you want to rant about the gomen, shouldn't you do it in RWI?

There's the gomen and the private sector. The gomen is mere one part of the economic landscape in this country. There also other factors such as foreign demand, foreign investors...etc, etc that dictates this country's economy on top of the gomen. That is the reason why, despite almost 50 years of sheer incompetence and greed, our country still manages to grow 4% per annum. Yes, there is lots of poor in this country, but you also ignore e fact that Malaysia still has a sizable but squeezed middle class, and also quite a few wealthy ones.

Your hatred of the gomen makes you myopic to the fact.

Hence the disposal income of Malaysians will still be there. Once the home prices corrected, they will still buy a house.