A mortgage loan is one of the key elements that enables many people to realise their dream of owning their own home. Despite this, there are many myths and misinformation surrounding this type of loan that can create unnecessary fear and uncertainty. In this article, we'll take a look at five of the most prevalent myths about the mortgage loan and show you why they are unfounded and how you can use a mortgage loan to achieve your housing goals.
Myth 1: You need a big salary to get a mortgage loan
This is one of the most common myths that creates the impression that without a large salary you will never be able to get a mortgage loan. The truth is that many banks and lending institutions examine your income when approving a mortgage loan, but it is not the only factor. Banks also look at your long-term credit profile, your creditworthiness and your ability to repay. If you have a stable income and a good credit profile, you may qualify for a mortgage loan even with a lower salary.
Myth 2: A mortgage loan is only available to people in their senior years
This is another misconception that often limits people in their pursuit of homeownership. Mortgage loans are not only for the older generation. The fact is that age is not as important as your ability to repay the loan and your credit profile. Young individuals or recent graduates can also get a mortgage loan if they have a stable income and a solid credit history.
Myth 3: High interest rates
Many people are worried about mortgage loans because of high interest rates. The reality is that interest rates vary depending on many factors, including market trends. Although interest rates are currently higher, they need to be looked at in terms of the fixing setup and the CNB's predictions, which foresee them falling in the coming months. It should be noted that even the current interest rates are not extremely high from a long-term perspective.
Myth 4: A mortgage loan will burden you for life
Many people fear that a mortgage loan will be a long-term financial burden. The truth is that most mortgage loans have a standard term of 15 to 30 years. However, you can also choose to pay off your loan faster, saving on interest and speeding up the repayment of your mortgage loan.
Myth 5: A mortgage loan commits you to living in one place permanently
Many people worry that a mortgage loan is a commitment that ties them to one place and prevents them from having the flexibility to move. However, many mortgage loans allow for early repayment or transfer to another house if you decide to move.
Overall, a mortgage loan is a tool that can help many people achieve their housing dreams. It is important that you follow the right information and consult with real estate financing experts before deciding on a mortgage loan. Remember that a mortgage loan can be accessible and flexible if you have a stable income, a solid credit profile and an informed approach to this financial instrument.