What are the Different Types of Mortgage Loans Available?

The different types of mortgage loans available include:

• Loan Against Property (LAP): Applicants can mortgage residential or commercial property to obtain funds for personal or professional needs. The loan provider keeps the property papers until full repayment. Money is paid back in Equated Monthly Instalments (EMIs) for up to a few years fixed by the financial institutions.
• Commercial Property Loans: These are used to purchase or improve retail stores, office buildings, apartment complexes, or other commercial real estate. The borrowed money can only be used for expenses related to the specific commercial property serving as collateral for the loan.
• Lease Rental Discounting (LRD) Loans: Applicants can mortgage leased-out assets. The loan amount is based on regular rental income. Tenure and quantity are as per leasing terms.
• Second Mortgages/Top-Ups: Based on their credit record, those with existing loans can get second mortgages on the same property. The extra money can be used for various needs.
• Reverse Mortgages: Reverse mortgages allow senior homeowners to access some of their home equity as regular payments while retaining ownership. The loan gets repaid from the sale proceeds when the senior sells the home or passes away.