Are You Planning to Apply for a Mortgage Loan in Mumbai?

Mortgage loan, also known as mortgage, can be obtained through an online broker, bank or an independent mortgage broker. Whether you are an individual mortgaging your home or a business mortgaging your commercial property, you need to pledge property owned for refinancing a loan or to buy residential or commercial real estate. 

If you are planning to apply for a mortgage loan inMumbai, make sure you have chosen a reliable lender. Since the property purchased will be used as collateral or security for obtaining the debt, it is important to know whether or not the lender is safe to deal with. In case you default on the mortgage payments, the property will be sold by the lender under foreclosure. 

Are you eligible to apply for mortgage loan?

Income and employment details are taken into consideration when accepting or rejecting a mortgage loan application. Income details help in assessing whether or not the applicant can handle monthly payments of the loan. There are mainly three important aspects that are considered by lenders when sanctioning a loan:

1.       Down payment

2.       Credit score

3.       Monthly income 

Types of Mortgage Loans

Fixed rate mortgage- this is one of the most popular mortgage products, carrying a fixed rate over the loan period. This type of mortgage is not influenced by increase or decrease in interest rates because the rates are locked and payment amount remains the same

Adjustable rate mortgage- this type has a fixed interest rate for a certain period. This type of mortgage fluctuates as per changes in market interest rate once the fixed rate period is complete

Whether you apply for a mortgage or home loan online, interest rate, payment amount, pre-payment and term are some of the common characteristics of mortgage.  

Points to Consider When Applying for Commercial Mortgage Loans

You can apply for commercial mortgage if you wish to buy business premises or release capital locked in the commercial property. Be it an office building, apartment complex, shopping center or an industrial warehouse, commercial mortgage can be used for refinancing, acquiring or re-developing commercial properties.

Here are some of the key points to consider when applying for a commercial mortgage loan:

·         With this type of loan, you can expect a slight increase in monthly repayments if you have a variable rate deal. However, there won’t be any unexpected increases in rent

·         Your business capital will increase if value of the property goes up

·         Commercial mortgage is available at a higher rate of interest because this type of loan is considered risky

·         To help meet monthly repayments, you can rent a portion of the premises to another company but your lender needs to agree for such an arrangement

·         Compared to other types of loans, there can be some additional cost associated with commercial mortgage therefore, make sure you are aware of all details before applying

Whether you need commercial mortgage or a housing loan in Mumbai, make sure you do some research to find a reputed and reliable lender. There are several mortgage providers in the market but not all can be trusted. You need to find one that not only offers you the loan amount at low interest rates but also keeps the documentation requirements easy.

Since mortgage lenders require a deposit of approximately 25-40% of the property’s total value, make sure you are dealing with the right party. Different lenders prefer different assets. While some prefer first charge others prefer taking second charge against property. So, make sure all points are clear before applying.