A mortgage loan offers a higher amount of money which you can use to fund many of your needs. You can use it to support your children’s marriage and higher education, go on a holiday, consolidate debts or meet a medical emergency with loan.
Many people who have a property apply for it at the affordable interest rate. As a result, they repay it over a longer tenor without affecting monthly outlays.
However, before you apply for the mortgage loan, you should ensure that you don’t fall for the myths revolving it and debunk it. It will ensure that you are deciding to apply for the mortgage loan entirely on facts and not on myths.
Here are some mortgage loan myths that you should go through to once to know the fact behind them.
Myth 1 – You can’t use the Property that you Mortgage
People believe that the property that you are mortgaging can’t be used. It is not true! Homeowners who mortgage their properties to borrow some funds are authorized to use it as per their wish till the end of the tenor. You will lose the property’s ownership only if you default on the mortgage loan. During such cases, lenders can sell your property to raise funds from it to recover their loss.
Myth 2 – You can Borrow the Loan Amounting to the entire Property’s Value
Many people believe that they can borrow a loan amounting to the entire value of the property to be mortgaged. It is not true! Lenders can approve a loan amount amounting to 70-90% of the property’s worth, and it depends on their policies also. Hence, you should estimate the property’s value beforehand to know how much you can borrow in the end.
Myth 3 – You can get a Mortgage Loan against a Residential Property only
This myth is entirely gibberish and not true! You can get a mortgage loan approval when you pledge either a commercial or residential property. What’s more, even buying of any property via the mortgage loan funds is possible. Many lenders give you the facility to use the flexi loan feature. It lets you borrow a part of the sanctioned loan limit as per your need. You only need to pay the interest on the utilized amount as per the EMI amount and nothing else. The rest of the loan can be adjusted after the end of the tenor.
Myth 4 – You need to be Earning a higher Income to Apply for it
Your income does play a part in determining your repayment capacity and affect the loan’s approval. But, it’s not required that you should be earning a higher income to apply for the mortgage loan. You can apply for the mortgage loan as long as you have needed repayment capacity to pay off the loan on time.
Hence, if you need funds at affordable mortgage loan interest rate, it is the time to rise above these myths and apply for it online.
All that you need to do is share your basic information to check out your pre-approved loan offers right away!
Bajaj Finserv presents amazing pre-approved offers on the mortgage loan, loan against property, personal loan, home loan and many more. You can go for these offers and ease off the overall loan processes to get quick approval and disbursal.