Financial services ... Important questions when requesting real estate financing

Mortgage is a type of loan commonly used to purchase a property.

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The Central Bank said that a mortgage is a type of loan that is usually used to finance the purchase of a property, such as a new home or an investment property, but it indicated that when thinking about buying a property and the need to obtain a loan to finance it, it must search for several options and compare the interest rates offered.

The Central Bank affirmed that the customer has the right to ask inquiries to ensure that he knows his main obligations before signing the loan agreement.

Amortization period, mortgage loan: How many years will it take to pay off the loan?

■■ The term of the loan is the period of time during which the bank will offer you the loan, and the mortgage agreement usually ends after a period of time (for example, from one to five years), and after that you may request the renewal of the loan for the period of its balance, repayment or transfer to Another financial institution.

■ What is the annual interest rate on a mortgage?

■ Does the interest rate change?

And if so, when?

■■ What is the principal amount and the amount of interest that will be paid at the end of the loan term?

How much is the early mortgage payment penalty?

■■ What are the mortgage fees, statutory fees, appraisal fees, administration fees, and examination fees?

■■ What are the fees and charges if you are late in payment, miss a payment, want to change the payment due date, change the payment amount, add a lump sum payment, or want to renew the mortgage?

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