The visitors of our platform who intend to buy a property and explore possibilities of financial solutions quite often come up with the question of what a mortgage loan is.
In fact, a mortgage loan is a loan product like a car loan and a vacation loan issued by a bank.
The amount of the borrowed money is higher and the repayment period is slightly longer in comparison with other types of loans. The bank will mortgage the property so that the loan is ‘secured’ against the value of your property until it is paid off.
If you can’t keep up your repayments the lender can repossess your property and sell it to they get their money back.
An equity credit line usually covers up to 75 percent of the real estate you buy. Therefore, you have to have savings to cover the rest of the sum to be paid to the seller.
The impulse to overvalue the property will not work here as the property will be mortgaged by the bank and the value will be determined by professional experts.
Your personal credit rating generally determines the interest rate and date of maturity.
If you are researching about North Cyprus mortgage loans, you can both investigate local banks and branches of Turkish banks.
To get more detailed information, you can refer to our article titled TRNC Bank Loans.