Very few people are able to buy a home or invest in property without a mortgage. A purchase of this magnitude is probably going to be at least hundreds of thousands of dollars for the privileged few who can afford it.
So What actually is a mortgage, and what are the benefits of one?
A mortgage is actually a debt instrument that the borrower must pay back over a period of many years. They are used by individuals and businesses to make large property purchases whilst avoiding the entire up-front payment. The borrower repays the loan plus interest with a predetermined set of payments until he finally owns the property.
A mortgage makes home ownership affordable and it’s a cost effective way of borrowing. Interest rates on mortgages tend to be lower than any other types of borrowing.
You might consider three essential things when thinking of taking out a mortgage.
- Finding the mortgage that suits your individual needs and current situation.
- Borrowing an amount you can comfortably afford.
- Consider possible, future changes such as; interest rates going up, a drop in your income or even losing your job.
It can prove difficult to find the right mortgage, the right advice and the right institution. At Richelieu International, we can offer our specialist expertise to guide you in making the most informed decision possible so that you can enjoy the home you’ve always dreamed of or find the perfect property investment that can make you additional rental income.