Mortgages are loans specifically used to finance the purchase of a property. The property itself serves as collateral.
- Benefits:
- Allows you to purchase a property without upfront payment for the full amount.
- Fixed interest rates provide predictable monthly payments.
- Eligibility:
- Varies depending on lender and loan program.
- Stable income and employment history are crucial.
- Good credit score is generally required.
- Minimum down payment may be necessary (percentage of the property value).
- Types of Mortgages in Zambia (may vary by lender):
- Fixed-rate mortgages
- Adjustable-rate mortgages
- Home improvement loans