An unwritten rule in banks is that the more control a bank has over what you borrow money, the lower the interest rate. However, you do not always have the opportunity to provide the bank with proof of what you used the borrowed money for. If you are one of the people who want to borrow money, but also have trouble proving the purpose, then you can take advantage of a favorable mortgage. Some would suggest from the name that this is a home loan, but this is not the case.
One of the features of a mortgage is that it is a loan without proof of purpose, so you do not have to prove what you used the borrowed money for. If we compare it with a regular mortgage, they only have joint liability, which is with the help of real estate, so you only need a house or an apartment and you can apply for a mortgage.
More advantageous than a consumer loan
If we compare it with a non-purpose consumer loan, it is more advantageous because its interest rate is lower and you can also borrow more money. You can also repay it for a longer period. The maximum loan amount is affected by the price of the property, as banks offer a loan of up to 70 percent of the property value.
It is not always more advantageous
If you plan to borrow only a small amount of money, a consumer loan will usually be more advantageous for you, because the cost of arranging a US loan may be higher, so it is not worth borrowing lower amounts of money.
Who can get a mortgage?
- A person over 18 years of age
- The maximum age of the applicant can usually be up to 60 years
- You must be a citizen of the country or a foreigner with permanent residence in the country
The maturity varies according to the banks that offer the mortgage and according to the amount of the loan. Maturity ranges from 1 year to 20 years, a maximum of 30 years. The mortgage ranges in the market with an interest rate from 4.35% with a fixation for 5 years.