May be the first question we should answer is, SHOULD YOU TAKE A MORTGAGE LOAN?

Well, I do not have a yes or no answer for you. It is a choice you need to make on your own. However, I think it is more an issue of not feeling comfortable managing debt. It is about knowing the difference between good debt and bad debt. According to the Rich Dad Advisors (Secrets of Successful Real Estate Investing), “with leverage, you use other people’s money to build assets…”

It seems to me that you are on the right track, once you have considered the title to the property, the location of the property, the price of the property, the rent income yield potentials of the property, the interest rate on the mortgage loan, the tenor of the mortgage loan and your debt service ratio or repayment capacity

We need to be on same page on the meaning of the subject (mortgage). A mortgage loan, also referred to as a mortgage, is a loan given to and used by an obligor, to purchase real property (a house). The loan is secured with the property financed. It is a  loan  to finance the purchase of real estate , usually with specified payment periods  and interest rates, with the borrower (mortgagor) giving  the lender (mortgagee) a lien on the property as collateral for the loan. The mortgagor’s lien on the property is discharged when he mortgage is fully repaid. .

A mortgage arrangement has the unique benefit of being able to satisfy both parties to the credit contract; the bank can be comfortable in the fact that the credit risk is mitigated by its charge on the mortgaged property, while the borrower is assured that he has a right of redemption, as he keeps to the terms of the mortgage.

We will examine the various forms mortgages may take, in practice.

Now, let us run through some of the factors considered by the loan analyst, depending on the obligor category or loan type:

Mortgages to the employed


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