Mortgages

Need help understanding Mortgages? Give us a call! 

Free ConsultationContact Us

Mortage Loans

Most people do not have sufficient money in cash to buy a home. A mortgage or mortgage loan allows people to borrow money from a lender in order to purchase a home. The borrower usually pays a part of the purchase price in cash (referred to as a ‘deposit’) and borrows the rest from a lender (often a bank). The borrower will repay the amount borrowed over time (usually 15 or 30 years) in installments. Each installment will repay a portion of the original loan (principal) and an additional amount (interest). The interest is the cost to the borrower of taking the loan, and the income of the lender making the loan.

Mortgage Definition

A mortgage is a type of loan, specifically relating to property, land or an interest in land. The mortgage is secured against the property, and therefore usually allows the lender to sell the property if the borrower fails to make the agreed repayments (referred to as the borrower ‘defaulting’).

Mortgage Loan Pros & Cons

The Good, The Bad, & The Ugly!

Mortgages, just like any debt, have positives and negatives. Used wisely, they can significantly increase the comfort and quality of borrower’s lives. However, used poorly, they can spell financial ruin.

Positives of Mortgage Loans

 

  • A mortgage allows borrowers to access money to buy a house that they wouldn’t otherwise be able to afford;
  • A house can be an investment, and therefore allows borrowers to increase their overall net worth;
  • Mortgages can be used to handle changing circumstances, such as growing family size resulting in a need for a new or larger home; and
  • Mortgages usually offer far lower interest rates than other types of borrowing.

Negatives of Mortgage Loans

 

  • It’s one of the longest debts you’ll ever have – often 30 years or more;
  • Most people pay hundreds of thousands of dollars in interest over the term of the mortgage;
  • It’s likely to be the single biggest expense in a borrower’s budget, and is therefore a significant financial commitment; and 
  • The mortgage is secured against your property, so if you fail to keep up with the repayments, you could lose your home.

 

GET HELP UNDERSTANDING MORTGAGE LOANS

 

By understanding the client’s goals and individual circumstances, Life Streamliner simplifies the complexity associated with mortgages, and gives clients the knowledge to make informed decisions. Life Streamliner guides its clients through the mortgage process, by setting out, explaining and recommending proven and tested strategies. Life Streamliner empowers its clients by teaching them mortgage basics, things to look out for, and factors to consider, so that in the future, clients are able to confidently handle their own mortgage matters without feeling overwhelmed or out of their depth.

Already know what you need? Schedule your FREE consultation!