DATE: March 25, 2020
A mortgage is, in other words, a non-purpose mortgage secured by real estate. It is a term that is often used in our country. The reasons for the practice are different, but they have a common denominator. This is the law on housing loans, which specifies exactly what a housing loan secured by real estate can be used for. There simply has to be a defined purpose associated with the acquisition of real estate, whether it is construction, purchase, inheritance settlement, reconstruction, or refinancing of a previously granted loan for these purposes.
A mortgage is something else. The bank is not so interested in what the money will be used for. It is a consumer loan secured by real estate. Practically money can be used for anything. They are not purpose bound.
THE mortgage is often used to buy a car, buy real estate abroad, or to repay previously granted loans, which are not mentioned in the law on housing loans.
The biggest advantage of A mortgage is the futility of the mortgage. However, in the case of A mortgage, the applicant must meet the conditions as in the case of a normal mortgage, which are:
Although the interest rate is slightly higher than with a classic mortgage, it is incomparably lower than with other types of consumer loans. The loan amount can be set much higher than with consumer loans.
It follows from the above that we can use the mortgage even in difficult life situations, such as repaying expensive loans from non-banks, but we can use it to fulfill our dreams. For example, buying property abroad, whether it is a cottage or apartment on the beach or in the mountains. Alternatively, we can start or oppose our business with it.
With a reasonable setting, it can also be used as an investment when the return on money that the bank provides us is higher than the interest that the bank demands and generates a profit for us. An example could be investment real estate, or investments in the financial market in the form of various derivatives.
Are you interested in A mortgage and need help? Write to us and our mortgage specialists will contact you.
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