What Is the Difference Between a Mortgage and Personal Loan?
Lenders such as Mortgage House offer clients an array of loan products including the mortgage and personal loan. Understanding the purpose of each helps individuals maximise the financial options available to them. For example, the Australian government invests resources into helping the population become homeowners. Many believe that homeownership is the best path toward wealth creation. After five years of on-time mortgage repayments, properties accumulate meaningful home equity. Although it’s paper wealth, homeowners can leverage it to obtain favourable loan terms on home equity lines of credit and renovation loans.
A mortgage is a financial instrument that allows homebuyers to finance home purchases. The minimum amount that lenders will finance is $100,000. It has several durations including 15, 20, and 30 years. Interest rates on mortgages range from 1.99% to 5% on average. Moreover, it has one purpose. Within the mortgage category, several mortgage choice options exist.
Mortgage House personal loans allow individuals to finance a vacation, take care of a financial emergency, and pay for special occasions such as weddings. Personal loans have shorter loan terms. Interest rates range from 4.99% to 35% on average, especially if the lender sets it as a revolving line of credit. Borrowing amounts start at $1,000 and go to $100,00.
Mortgage and Personal Loan Definitions Conclusion
When you need to pick between a mortgage and personal loan, Mortgage House loan specialists will help you explore your financing options. Moreover, when you become a Mortgage House client, you receive access to our complete loan product line. Contact our team today.