A property loan, also known as a mortgage, is a type of loan used to finance the purchase of a property, such as a home or a commercial building or the land beneath it. Some lenders may call both as property loans whereas some will offer land loans as a separate product.
Property loans are typically secured loans, which means that they are backed by the property being purchased as collateral.
There are a few different types of property loans, such as fixed-rate mortgages, floating-rate mortgages, and interest-only mortgages depending on the region. Fixed-rate mortgages have a fixed interest rate and a fixed repayment term, while floating-rate (also called adjustable-rate in some regions) mortgages have an interest rate that can fluctuate over time. Interest-only mortgages allow borrowers to pay only the interest on their loan for a set period of time, after which they must begin paying off the principal as well.
The latter is technically a repayment method rather than a loan type). However lenders like to brand their loan types differently to try to stand out but end up creating a nightmare for consumers with so many different terms for the same loan type. So do refer to our glossary and not just rely on the label they use to make sure both are on the same page, and you do not end up applying for the wrong loan type if you are not using us!
Please note for property-related loans under a company name, you should choose the Business category instead of Consumer, followed by the loan type. If the property belongs to an individual shareholder - he/she usually takes up the loan in his/her personal capacity and loans it to the company/shareholders.
There are rare instances where an individual set up a company just to be able to borrow from lenders that can only lend to businesses. Note: These lenders typically only lend to borrowers that are High Net Worth individuals with assets totalling at least 2mm. We recommend that you get quotes from the Consumer lenders first to see if there is a quote you like and reach out to us to see if it is worthwhile to get quotes from these business lenders.
Get started with your loan search here — it’s fast and free.
Share on: