If you want to know about mortgages, like what is a mortgage, what the interest rate is charged by the banks for the mortgage, what the required documents for the mortgage are, and the last question on how to apply for a mortgage all the questions answer available in this article. For more information about the mortgage please complete reading this article. After reading this article you will get full information about the mortgage.
What is Mortgage?
A mortgage is a type of loan that provides funds by pledging the candidate's property. Usually, the mortgage interest rate is between 8.15% to 11.80% and the mortgage loan max repayment tenure is 15 years. And banks are provided the loan amount of up to 10 crores. With the condition of 60% of the property value of your loan amount.
Types of Mortgage Loan
Mortgage loans are 4 (four) types of that are 1) Fixed Mortgages, 2) Adjustable-Rate Mortgages(ARM), 3) Interest-Only Loans, and 4) Reverse Mortgages. The mentioned four types of mortgage loans are available for the candidate. You can choose any single type of mortgage plan for you.
- Fixed Mortgages
- Adjustable-Rate Mortgages(ARM)
- Interest-Only Loans
- Reverse Mortgage
What is the Requirement of a Mortgage Loan?
The Mortgage loan is required for the people because Mortgage loan allows giving a small downpayment to the people, therefore the people are required for the Mortgage Loan.
How to get a Mortgage Loan?
If you are looking for a mortgage loan then don't worry. We have fully guided you on how can you get a mortgage loan. If you want to apply for a mortgage loan then you should do it online from the bank's official website from which banks you want to get a mortgage loan. All the processes will be completely online, you did not require to fill up any physical forms anywhere.
How to apply for Mortgage Loan?
You know that for an online mortgage loan, you should do it from the bank's official website. If you want to get a mortgage loan from SBI then you can do it from the official website of the SBI, similarly, if you want to get a loan from other banks like HDFC, and ICICI then you can do it from these banks' official websites.
What are the Eligibility Criteria for Mortgage Loans?
For a Mortgage loan, the banks work in some conditions for providing the loan which is also called the eligibility criteria of the Mortgage loan. On the below-mentioned eligibility criteria for the Mortgage loan, you can see that.
- The candidate's age is more than 21 years.
- Required monthly or annual income.
- A number of dependents.
- Income proof documentation.
- Existing Liabilities.
- Valuation of the candidate's property.
What are the Required Documents for Mortgage Loan?
How banks are checked the eligibility criteria of the candidate who wants to get a mortgage loan, The banks ask you to provide some documents for providing the mortgage loan. After completing the eligibility criteria it is the next step for the candidates if your documents are complete then you will complete this step.
- Passport size photos
- Aadhar/ Pan Card/ Passport/ Driving License/ Voter Id (As per Candidate's Personal identity)
- Electricity bill/ Ration Card/ Aadhar Card/ Driving License/ Rental Agreement (As per Residental Identity)
- Bank Statement (Latest)
- Latest Salary Slip
- Processing Fee Cheque
- Form 16
- Dully Filled Loan Application Form
If the candidate is a self employee then also required the business-proof, Financial Statement of Last Three Years, ITR Certificate for the Last 3 Years(Latest). If you are not a self employee then you did not require these documents. You can follow the above-mentioned documents.
Top 10 Banks Mortgage Loan Interest Rate
| Banks | Loan Amount | Interest Rate | Loan Tenure (Max Period) |
| SBI | Up to 7.5 crores | 1.60% to 2.50% | 15years |
| HDFC Bank | 60% of the Mortgage Property | 8.75% | 15years |
| Union Bank of India | Up to 10 crores | 9.80% | 12years |
| IDBI Bank | Up to 10 crores | 10.20% | 15years |
| Orient Bank of Commerce | Up to 10 crores | 10.95% | 10years |
| HSBC Bank | Up to 10 crores | 8.80% | 15years |
| PNB Housing Finance | Up to 60% of Mortgage Property | 9.80% | 15years |
| Axis Bank | Up to 5 crores | 10.50% | 20years |
| Citi Bank | Up to 5 crores | 8.15% | 15years |
| Corporation Bank | Up to 5 crores | 10.85% | 10years |
As you can see in the above-mentioned the bank's interest rate on the loan amount with the tenures. You can choose the best banks for a mortgage loan. Make sure before doing any mortgage loan on the loan banks you have must the bank account the bank.
Benefits of Mortgage Loan
A mortgage loan is the best option for getting a loan. The mortgage loan is easily approved if they are secured. The mortgage loan is best because of its long tenure of the loan repayment period. You can buy or build a house using a mortgage loan.
FAQs
1. Is a Mortgage a Loan?
Yes, the Mortgage loan is a type of loan, but this loan is against the candidate's property.
2. Is a Mortgage loan a home loan?
It sure has similarities between Mortgages and Home loans, but both are different.
3. Why it is called a mortgage?
The mortgage is a french word and its meaning is 'dead pledge'.
