Everything you Need to Know about Real Estate Mortgage
The mortgage is a supportive method provided by the banks and the financial supervisory authorities that aim to help the citizens in buying a specific residential or commercial property. Not only that, as you can use mortgage for developing and repairing your property.
You can use mortgage for buying, building, or developing one of the residential, administrative, commercial, or business units.
Types of Mortgage
- Murabaha System
Murabaha simply means that the financial authority sells the property for the applicant. Thus, the property becomes a mortgage for the authority till the owner can pay the whole cost of the property.
Also, this type states that in the case of any delay in the payment, the authority has the right to sell the property in the auction and the owner also has the right to buy it in cash if he is able to,
- Rental Ownership
It means that the applicant can rent the unit from the bank or the authority for a specific period then it becomes his own after the expiration period,
- Diminishing Musharakah
Diminishing Musharakah states that both of the applicant and the authority can buy a specific property, under a certain condition that the authority pays the biggest or the whole amount of the money. So, while time passes, the owner gradually can buy the proportion of the authority till paying the whole amount and then the property becomes his.
Advantages of Mortgage
- Whenever you get the mortgage, you’ll be able to use the property directly,
- Mortgage fund can pay 90% of the price of the property,
- With mortgage fund, you will pay specific monthly installments,
- You can pay the installments over 20 years,
- You have the right to choose the property you want.
There are a lot of supportive methods that aim to help you to own your property.
Start now and don’t waste the chance.