Connect with us


An Ultimate Guide To Handle Mortgage Like A Pro In 2023

Avatar photo




Are you buying a property in 2023 by taking a mortgage? If yes, this article is for you.

Taking a mortgage can be tricky, and things can go the other way if you are not well informed. That’s not the rabbit hole you would want to be in right? So, read further to understand everything about the mortgage you need to know before you take a mortgage.

Mortgage In A Nutshell

A mortgage is a secured loan that gets you funds by pledging your property. It is also called a loan against property. The reason it is called a secured loan is that banks or any financial institution take your property until you repay the loan. In this case, since you own the property you are the mortgagor and the bank or the financial institution is called a mortgagee.

When the mortgagor and the mortgagee enter a contract, they both sign a mortgage deed. A mortgage deed contains details of the agreement between the two parties, the value of the loan, duration of the loan, interest payable,  any other costs, and terms and conditions involved.

You as a mortgagor will be expected to repay the loan with interest over a period of time. It is after this time that you get the clear title of the property. In case you fail to repay the loan, the bank or the financial institution will claim the property and will sell or auction it to cover their payments.

A mortgage is a pretty common mode of financing by banks and financial institutions. When banks provide finance for the purchase of a residential property or the construction of a house, the property of the mortgagor is called “Principal Security”.

Eligibility For A Mortgage

So, say you were to purchase a property in Mumbai. Given that home prices in Mumbai are high, you first need to know what is the amount of funds you can gather. Hence, let us first understand whether you are eligible or not. It differs for salaried and self-employed applicants.

If You Are A Salaried Applicant

As a salaried applicant here are the three things that make you eligible for taking a mortgage:

  • You need to be a citizen residing in India
  • Your age needs to be between 28 to 58
  • You need to be a working professional in an MNC, Private company, or Public company with three years of experience

Note: The upper limit of the age will be considered as the age at the time of maturity of the loan. 

If You Are A Self-Employed Applicant

As a salaried applicant here are the three things that make you eligible for taking a mortgage:

  • You need to be a citizen residing in India
  • Your age needs to be between 25 to 70
  • You need to prove that you have a steady & reliable source of income

Note: The upper limit of the age will be considered as the age at the time of maturity of the loan.

In either case, if you have a good CIBIL score, the process of loan approval becomes a lot easier.

Documents Required For A Mortgage

If you are a salaried or a self-employed applicant, you need to submit the below documents along with your loan application. The number of documents varies for different banks or financial institutions but typically below-given documents are asked to process your loan application.

Documents A Salaried Applicant Needs To Submit:

  • Aadhar card
  • Address proof
  • PAN card
  • Six months’ salary slips
  • Last three months’ bank account statements
  • Income Tax Returns (ITRs)
  • Property’s title document copy

Documents A Self-Employed Applicant Needs To Submit:

  • Aadhar card
  • Address proof
  • PAN card
  • Last six months’ bank account statements
  • Property’s title documents copy

Mortgage Interest Rate Types:

You can pay off your mortgage loan by option for a type of interest rate that suits your convenience. Here are the two types of interest rates:

  • Floating Interest Rate
  • Fixed Interest Rate

Floating Interest Rate

If you choose a floating interest rate, the interest rate is adjusted in real-time. Hence, the interest rate cannot be predicted & it can change periodically as well. It is directly related to the Marginal Cost of Funds based Lending Rate (MCLR).

Fixed Interest Rate

If you go for a fixed interest rate, the interest rate remains fixed for the entire tenure of the loan. You may opt for a fixed interest rate if you opt for a shorter loan tenure. In case you are looking for a longer-tenure of loan, you may not be able to get a fixed interest rate.

Difference Between A Home Loan & A Mortgage:

There’s often confusion between a home loan and a mortgage. Here is the difference between them:

Criterion Home Loan Mortgage
Use Only used for construction of purchasing a ready-to-move house Used for both personal and personal requirements
Loan to value ratio Up to 90% of the market value of property Up to 60-75% of the market value of property
Interest Rate Starts from 8.70% for salaried & self-employed applicants Starts from 9.50% for salaried & self-employed applicants
Loan Tenure Up to 30 years Up to 15 years
Tax Exemption Tax exemption under Section 24 for interest & 80C for principal Tax exemption if utilised for business purposes

Benefits & Features of Taking A Mortgage:

As a mortgagor, quite a lot is at stake, and you need to know the benefits of taking a mortgage loan. Here are the benefits of taking a loan against property:

  • They are easily approved because they are secured in nature.
  • The interest you pay for a mortgage loan is much lower than that of a personal loan.
  • They have longer repayment tenures.
  • You will remain the property’s legal owner while using the funds from the loan.
  • You can even claim tax exemption if the loan is utilised for business purposes.

Note: You cannot get tax benefits if you are transforming the mortgaged property or are using the funds for education, marriage, or vacation. You cannot get tax exemption under section 80C either.


Think through your decision to take a mortgage loan as in case of default the mortgagee will get a right to sell your property to recover dues. Before applying for a loan compare the interest rates & charges of multiple banks & financial institutions. Being aware of these details will help you make an informed decision.

Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Top of the month

Copyright © 2023 STARTUP INFO - Privacy Policy - Terms and Conditions - Sitemap - Advisor


We are a global Innovative startup's magazine & competitions host. 12,000+ startups from 58 countries already took part in our competitions. STARTUP.INFO is the first collaborative magazine (write for us or submit a guest post) dedicated to the promotion of startups with more than 400 000+ unique visitors per month. Our objective : Make startup companies known to the global business ecosystem, journalists, investors and early adopters. Thousands of startups already were funded after pitching on

Get in touch : Email : contact(a) - Phone: +33 7 69 49 25 08 - Address : 2 rue de la bourse 75002 Paris, France