Home Loan

A loan provided by a mortgagor, bank or any other supporting financial institution to enable individuals and companies to purchase a residential home. The borrower of the mortgage transfers the home title to the mortgagor with the condition that it will be transferred back to the owner upon completion of repayment and when all other terms of that mortgage have been satisfied.

Lenders provide mortgages with either a floating or fixed interest rate. The interest rate is paid alongside the principal repayment every month. A home loan is secured on the home itself. If you fail to make repayments as agreed, you have the option of short selling it. If you don’t take an action yourself, the mortgage will foreclose it, having a seriously negative impact on your credit report.

However, a mortgage loan offers several benefits to the borrower. Interest on the mortgage, first of all, is tax deductible up to a limit of $1 million on the debt. This leads to massive tax savings.

You can take a mortgage any time as long as you convince the lender that you are able to repay it over the remaining mortgage period. It doesn’t matter whether you are salaried or self-employed.