What is a Mortgage Loan?
A mortgage, or mortgage loan, is a special type of loan taken against property in which a person pledges his property to a financial institution as per the stipulated time limit and takes some amount as loan and the loan amount is After paying the amount, he gets back the ownership of his property.
It is also called a mortgage loan. As a matter of fact, mortgage loans are taken by individuals who purchase a new home. They mortgage the documents of the newly purchased house with a financial institution and take a loan against the house registry.
What type of documents required for mortgage loan?
Why a Mortgage Loan is so important?
Mortgage lending is important for individuals to become home or property owners by enabling them to buy a property with a fraction of the whole price.
It provides financial benefits, promotes long-term investments and provides tax benefits. Additionally, the mortgage payments build equity, establish credit, and provide stability, making it an important tool in realizing the dream of home/property owner.
Types of Mortgage Loans
Equitable Mortgage or Oral Mortgage
In oral Mortgage Loan, housing finance companies (HFC) check the documents of your property and after signing the loan agreement, the loan is offered to you.In oral Mortgage Loan, there is no need to register the mortgage. Oral Mortgage Loans are very common in India, but most companies ask for property documents.
Registered mortgage
In a registered Mortgage Loan, the mortgage is registered with the relevant authority. In fact, the charge for mortgage registration of your property is recorded in the government statistics. In this method, the person taking the loan usually pays the registration charge.
Paramjit Singh
Abhishek Negi
Vinay Modi