When it comes to buying a property, a mortgage loan can often be a good option. With a mortgage, the borrower agrees to repay the loan within a set period of time. The mortgage is taken as collateral for the loan.
Applying for a mortgage loan can be an extensive process. There are many documents that are required, and various factors can influence the decision of the lender. The duration of the loan is particularly important, as well as the interest rate.
In this article we will look at the basics of mortgage loans, including the different types of loans, the importance of index tranches and interest rates, as well as the main requirements that must be met in order to obtain such a loan.
Everything you need to know about mortgages
A mortgage is a loan offered by a bank or lender to finance the purchase or renovation of a property. In exchange for the bank giving money, the buyer offers his land or property as collateral for the loan. If the borrower cannot repay the mortgage, the bank has the right to sell the house or property to recover the outstanding balance.