A mortgage is a financing option for the purchase of a residential property. It allows you to finance up to 80% of the purchase price. In contrast, the balance or equity is financed from other sources, such as your assets or an early withdrawal from your pension fund. As a rule, the financing consists of a first mortgage (up to 65%), for which you pay a mortgage interest, and a second mortgage (up to 15%), which you amortize ratably within a maximum of 15 years. This financing is provided by a lender such as a bank, pension fund or insurance company. These lenders will check your credit score beforehand to ensure you can pay the interest and installments. Therefore, you must have a realistic idea of your financial possibilities
The interest rate for the mortgage depends on various factors, such as the mortgage amount, the term and your credit rating. Therefore, you must choose a mortgage that fits your financial situation and does not create an excessive financial burden.
Mortgages come in various forms: