What's the difference between mortgage and loan?

the interest on a loan is a little higher than that on a mortgage. Mortgage loan can be used by the borrower to borrow money from the bank for consumption or other commercial purposes with the purchased house as collateral. And mortgage loans can only be used to apply for loans when buying a house. To apply for a loan, the borrower must provide relevant documents such as house ownership certificate and land use right, and then use the documents to apply for other property certificates. Only after passing the examination can the qualified borrowers apply for a house mortgage loan. Therefore, you can only apply for a loan after you get all the warrants. The mortgage can be applied for without obtaining the documents such as house property rights, just carrying the required information such as the purchase contract, and then applying for another property right certificate as a mortgage guarantee. Traditionally, mortgage means that the buyer obtains a loan from the bank with the purchased property as collateral, and the buyer pays the bank in installments according to the repayment method and time limit stipulated in the mortgage contract, and the bank charges interest at a certain interest rate. If the lender defaults, the bank has the right to take away the house. That is to say, before the buyer pays off the loan, in fact, he does not really have the right to buy the house. If the loan is not repaid on time, the bank can deal with it according to law.

1. The word "Mortgage" is a Cantonese transliteration of the English word "mortgage", which is pronounced as "ànjiē". It refers to a loan method for buying a house or shopping, in which the purchased house or articles are used as collateral to borrow money from a bank and then repaid in installments. It is a kind of housing guarantee loan, which refers to the personal housing loan that buyers use the purchased housing as collateral and the real estate development enterprise that buys the housing provides guarantee. It means that the mortgagor transfers the pre-purchased property right to the mortgage beneficiary (bank) as repayment guarantee, and after repayment, the mortgage beneficiary transfers the property right to the mortgagor.

2. Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other lending funds. Banks put the concentrated money and monetary funds out through loans, which can meet the needs of society to expand reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.

The difference between mortgage and loan

The difference between mortgage and loan is as follows: (1) Commercial loan is the way for buyers to borrow money from banks. Generally speaking, you use the house you bought as collateral, sign a commercial contract with the bank, and take the way of not transferring ownership as a guarantee to repay the loan to the bank on schedule. This kind of loan must pay interest. You have to pay off the principal and interest to the bank according to the contract, and then get back the collateral "house ownership certificate" and "land use certificate", which means that the ownership of the house is not yours before you pay off the loan. If you default, the bank has the right to deal with the house. (2) Mortgage is like installment payment now. You can get the ownership of the house by installment payment. As long as all the money is paid, the house is yours. However, mortgage sales will involve three debt relationships, one is the buyer, the other is the seller, and the third is the bank. The process is that the bank and the seller sign relevant contracts, pay part of the expenses in advance, and then the buyer signs a mortgage contract with the bank based on this contract, and the bank pays the rest of the purchase price to the seller, while the buyer only needs to pay the bank regularly until it is paid, and the mortgage process is over. (3) Commercial loans are also mortgage loans, and loans should be made with land use certificates and house ownership certificates. Its basic procedure is to apply for other property rights certificates on the premise that the buyer obtains the property rights certificate first, and hold other property rights certificates with the property rights certificate as collateral. (4) The mortgage is carried out when the buyer has not obtained the property right certificate. Generally, the other property right certificate is used as mortgage guarantee first, and the property right is transferred to the mortgage beneficiary by the real estate development unit after paying off the purchase price, and all the property rights certificates are held by the mortgagor. In a word: mortgage is actually using the house you bought as collateral, and commercial loans are using the house you already have as collateral.

What are the differences between mortgage and loan

In daily life, "mortgage" and "loan" are words that people often hear. However, because most people are busy with their work all day, they often confuse the meanings of loan and mortgage. So, what are the differences between mortgage and loan? Let's explore the answer together!

1. Different concepts

In fact, mortgage loan means that consumers use their pre-purchased houses as collateral and then get loans from banks. Then you only need to repay the bank in installments according to the repayment method and time limit stipulated in the mortgage contract, and the general bank will charge interest according to the interest rate. Besides, if the lender defaults, the bank has the right to confiscate the house.

Loan means that when people with civil capacity buy the house they live in, they can apply for a loan from the bank by using the guarantee method recognized by the bank or the property house they bought.

2. Different ways to repay the loan

Loan is actually that the buyer borrows money from the bank. Usually, you use the house you bought as collateral, and then sign a commercial contract with the bank. In fact, that is to say, before your loan is paid off, the ownership of the house is not yours. If you default, the bank has the right to deal with your house.

mortgage is installment payment, and buyers can get the ownership of the house by installment payment. As long as the installment payment is paid in full, the house is yours.

3. Different ways of handling

Commercial loans and mortgage loans are very similar, and you only need to rely on the house ownership certificate and land use certificate to make loans.

mortgage is carried out when the property buyers have not obtained the property right certificate. Generally, the applicant should first apply for other property certificates as collateral, and the property rights will be transferred to the mortgagor by the real estate development unit after paying the purchase price. At this time, the other property certificates can be owned by the mortgagor.

Editor's summary: The above introduces the differences between mortgage and loan, and I hope I can give you some little help!