A mortgage is a legal agreement where a lender (like a bank) loans you money to buy a property, using that property as collateral. If you fail to repay the loan, the lender can take possession of and sell the property to recover their funds.
While people use the terms interchangeably, a home loan is the actual money you borrow, while the mortgage is the legal contract pledging your house as security for that money.
And whilst most people know this, what is much less known is the meaning of the word mortgage. Its origin can be found in Old French and literally means Promise until Dead. Sounds scary, right? That's because it is… being tied to a Debt for 30 years or more is a scary proposition.
At Money Syndicates, our focus is in getting you out of debt and into building real wealth. Read our blog article
Getting a Home Loan is quite straight-forward. If the Bank decides that you can afford the repayments and your supporting credentials (ie, credit history etc) are favourable, then you're away. However, unless you fit the Bank's preferred customer profile, then it can be tricky.
And for those that are definitely not getting a look-in with the banks, there are various Vendor Finance strategies that are worth looking into. Learn more about Vendor Finance
If you require assistance, let us know and we'll connect you with an experienced and fully qualified consultant.