A mortgage loan helps you buy a home without paying the full cost upfront. It’s one of the biggest financial decisions you’ll ever make — and it requires long-term commitment.
- A mortgage is a loan for buying property. It’s used to purchase a house, apartment, or land. The bank or lender gives you most of the money, and you repay them over many years.
- Repayment is usually long-term. Most mortgages last 15 to 30 years. You pay back the loan in monthly installments, which include both principal and interest.
- The house is the collateral. If you fail to repay, the lender can take back the property — this is called foreclosure. It’s the risk that comes with the loan.
- You’ll need a down payment. Most lenders require 10–30% of the home’s price upfront. The more you put down, the less you borrow — and the lower your monthly payments.
- Additional costs apply. Be ready for legal fees, property insurance, valuation fees, and possibly taxes.
Fixed-rate vs. variable-rate mortgages:
- Fixed-rate: Your interest rate stays the same for the entire loan period. Easier for budgeting.
- Variable-rate: Your interest can go up or down over time, based on market changes. You may pay less at first, but more later.
👉 A mortgage makes homeownership possible — but only with careful planning.