Introduction to Residence Mortgage

Owning a home is a big dream for many. But buying a house is expensive. A residence mortgage can help you buy your dream home without spending all your savings. It is a loan where your house is the security. You pay back this loan in easy instalments over time.

At Bajaj Finance, you can also use a Loan Against Property to get funds by using your property as collateral. This type of loan has flexible terms and quick approvals.

In this article, we will explain residence mortgages, how they work, and how to apply for one.

What is a Residence Mortgage?

A residence mortgage is a loan used to buy or refinance a house. The house you are buying acts as security for the loan. This means if you do not repay, the lender can take your home. These loans usually have long repayment periods of up to 15 years.

The interest rate on the loan can be either fixed or adjustable. A fixed rate means that the interest will not change, while an adjustable rate can go up or down based on market conditions.

Types of Residence Mortgages Available

There are different types of residence mortgages. Here are some of the main ones:

• Conventional loans: These are basic loans that are not backed by the government.

• Government-backed loans: These loans are for first-time buyers or low-income people and are backed by the government.

• Jumbo loans: These are large loans for expensive properties that exceed standard loan limits.

• Loan against property: At Bajaj Finance, you can get a Loan Against Property and use the value of your home to access funds.

Fixed-Rate vs. Adjustable-Rate Residence Mortgages

When you apply for a residence mortgage, you need to choose between a fixed or adjustable interest rate.

Fixed-rate mortgages

In this type of mortgage, the interest rate stays the same throughout the loan period. This is good if you want predictable payments.

Adjustable-rate mortgages

This loan starts with a lower interest rate that can change after a few years. The rate can go up or down, depending on the market. To explore more options, check out the Mortgage Loan at Bajaj Finance.

Eligibility Criteria for Residence Mortgages

To get a residence mortgage, you must meet certain conditions:

• Age: 25 to 85 years.

• Income: Meet the lender's minimum income level.

• Credit score: A score above 750 increases your chances.

• Property type: The property should meet the lender's standards.

• Employment: You can be salaried or self-employed.

• Loan Amount: Based on the property's value and your income.

How to Apply for a Residence Mortgage?

Applying for a residence mortgage is easy if you follow these steps:

• Compare lenders: Look at different lenders and their interest rates.

• Check eligibility: Ensure you meet the requirements.

• Prepare documents: Get your papers ready.

• Apply: You can apply online or in person.

• Loan Review: The lender will check your documents and property details.

• Approval: After approval, you will receive the funds.

Documents Required for Residence Mortgages:

Here are the common documents that you will need:

Document Type	Specifics
ID proof	PAN card, Aadhar card
Address proof	Utility bill, rent agreement
Income proof	Salary slips or ITR
Property documents	Sale deed
Bank statements	Last 6 months

A residence mortgage is a useful loan to buy or refinance a house. Bajaj Finance provides competitive mortgage options, including Loan Against Property. By understanding the types, rates, and steps to apply, you can make a smart decision for your financial future.