People have different plans when it comes to buying a home or property. However, in most cases, the plan needs adequate funding. And it is very common for people to pursue a loan from a bank or financial institution to finance a property in Bangladesh. Among the various types of loans, mortgage or mortgage loans are quite popular. Today we will discuss everything about mortgage loan in Bangladesh.
What is a mortgage loan or mortgage?
A mortgage loan is a loan taken from a bank or financial institution in exchange for taking the title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt. And the legal document that is made for the execution of this mortgage is called a mortgage document or mortgage document.
When is a mortgage loan taken?
Mortgage loans are usually taken out to finance a new venture, for example, buying a property. The biggest advantage of a mortgage loan in Bangladesh is that the ownership of the property against which the loan is being taken can be restored after repaying the loan. Other than building or purchasing a house these loans can be taken for various purposes such as, for business development, for going abroad, for higher education, etc.
Suitable property for a mortgage and available loan amount
It is possible to take a mortgage loan against any type of real estate. Homes, plots, commercial or industrial properties can also be mortgaged. Even a property under construction can be considered a mortgaged property.
Now one of the frequently asked questions is, how much loan can be availed against a mortgaged property? It is possible to get a 50% to 75% loan against the total value of the mortgaged property. However, about 50% to 60% is the industry standard.
The value of any real estate is not predetermined. Therefore, the assets are subject to be evaluated and verified by banks and other financial institutions. After the valuation, the proper value of the property is determined and the loan is issued against that value.
Bproperty, the only full-fledged real estate solutions provider in Bangladesh, also specializes in property valuation. According to a recent agreement, Bproperty will work on property valuation and validation for IPDC, a reputed financial institution in Bangladesh.
Interest rate on a mortgage loan
Interest rates on mortgages are usually between 12% and 15%. Of course, many other factors also play an important role such as down-payments and the tenure of the mortgage. However, the interest rate on a mortgage loan is usually lower than any personal loan but slightly higher than home loans. If you want, you can calculate your mortgage, interest rate using Bproperty’s loan calculator.
Information needed for availing a mortgage loan
For any loan to be sanctioned, the bank or lending institution checks a lot of things. Documents that are usually scrutinized before sanctioning a mortgage:
- Monthly and annual income
- Tax issued in last 3 years and Tax Identification Number (TIN Number)
- Occupation
- Work experience
- Current working organization
- The value of the mortgaged property
- Ongoing or unpaid loan (if any)
The age of the applicant is also checked by the bank. Basically, every bank approves a loan only after successfully evaluating these issues. Depending on the bank, the process may be slightly different. On that note, Bproperty has exclusive agreements with various banks to offer its customers lucrative schemes. You can go through the details from Bproperty’s home loan page.
These are some of the important things you need to know about mortgage loan in Bangladesh. People are more conscious than ever and are exploring different options when it comes to taking loans for various reasons. So if you are one of them and need help, feel free to contact Bproperty online or offline. And don’t forget to let us know your thoughts in the comments section below.
