In a written reply to parliamentary questions, Mr Tharman said they give buyers the impression of improved housing affordability.
He said the reality is that of a larger long term debt service burden.
United Overseas Bank drew controversy when it launched a new 50-year home loan in July - geared towards young executives.
Mr Tharman said buyers may believe that they are able to afford larger or more expensive houses, and if widespread, this will increase the demand for properties.
He said the buyer will end up paying more interest and that the payment period could stretch past the normal retirement age, when the borrower may no longer have a steady income stream.
Mr Tharman said responsibility lies with borrowers, who must exercise prudence when taking housing loans.
The Monetary Authority of Singapore will carefully monitor mortgage tenure in relation to how banks structure mortgage products.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
| www.marshe.sg | www.marsheproperties.com.sg | www.hudcsg.blogspot.com |
| www.hausatserangoon.sg | www.8riversuites.com |