A mortgage loan is one of the basic and most popular forms of financing the purchase of a flat. This method of acquiring real estate is for people who cannot afford to pay immediately. It is worth checking what a สินเชื่อบ้าน is, what rights and obligations it entails and how it can be obtained.

According to recent research, a mortgage is the most popular form of housing financing, and most often a bank loan. Of course, it’s no surprise. Only a small percentage of people can afford to buy a property with a one-off payment without incurring additional loan commitments. Sometimes, it also happens that a mortgage borrows people who can afford to buy a flat. Why? Financiers argue that the reason is treating the mortgage as a housing investment. It allows for later profits for example from renting a property. Thanks to operations related to renting, the loan repays itself. It is included in the rent for the tenant, and the investor gains more real estate.

It is worth remembering that the loan involves many duties, but it also has its rights. A borrower wishing to take an apartment for a mortgage is obliged to provide adequate income, own payment although there are exceptions and all documents required in the loan granting process. It should be remembered that the bank will want many guarantees because the mortgage is taken for many years sometimes even 30.

Mortgage: definition

To take out a loan for an apartment, you need to know what a mortgage is. The definition of this banking product seems quite simple it is a long-term bank loan secured by a mortgage. This in turn is established for the benefit of the bank granting the loan. It may be granted on the right of perpetual usufruct or ownership of real estate.

• And how is it in practice? What is a mortgage? How does a mortgage work? The definition of a loan is actually a step-by-step operation. The potential borrower finds a flat that he wants to buy. Knowing that he cannot pay for them in advance, he decides to help the bank. In the relevant branch, the borrower submits the documents that are needed to obtain a loan a certificate of earnings, information about other credit obligations, information on how many people the flat should be allocated, etc. It is a step-by-step mortgage loan. The bank will have to be sure about the repayment of the product, which is a mortgage. The definition of financial liquidity is therefore very important here.
• The mortgage consists of the amount of the loan, the cost of the loan including insurance and bank commission, establishment of a mortgage (payment of a notary and entry in the land and mortgage register and interest. All these costs are usually included in the loan installment.

Only banks are entitled to grant such loans. It results from the fact that the Financial Supervision Authority controls them. Thanks to this, it can intervene in the event of breaking the law and trying to bend borrowers’ rights.