Why does my outstanding home loan remain high at the initial stage despite the repayments made?

During the early years of the loan, a significant amount of your repayments will go towards the payment of interest.

So, if you make partial repayments to repay the principal sum outstanding, you make substantial savings in your interest payments and thus shorten your loan tenure.

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Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)

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