Mortgage Loan

When you apply for a mortgage loan to finance your dream home, it’s essential to consider which type of mortgage loan is safe. A mortgage loan is a significant financial commitment, and choosing the wrong kind of loan can put you at risk of financial difficulty down the line. So, this article dives deep to help you find the safest ones in the market.

What is a Mortgage Loan?

property mortgage loan is used to finance the purchase of a property, such as a house or land. In this type of loan, the borrower borrows money from a lender to buy the property, which serves as collateral for the loan. If the borrower fails to repay, the lender can take hold of the property and sell it to recover the debt.

Mortgage loans typically have a fixed or adjustable interest rate and a repayment period of several years or even decades. The borrower makes regular payments (usually monthly) to the lender, which consist of both principal and interest. Once fully repaid, the borrower becomes the sole owner of the property.

Safe Mortgage Loans

  • Loan Against Property (LAP)

LAP is a type of property mortgage loan secured against the borrower’s property. This loan allows you to use your property as collateral and access funds for personal or professional needs. You must submit the original property documents to the lender until you complete repaying the loan.

The interest rates on LAP are usually lower than other unsecured loans since the borrower’s asset backs it. Besides, the tenure for these loans usually ranges up to 15 years.

  • Second Mortgage Loan

Also known as a home equity loan, this type of loan is a safe option for homeowners who need access to cash but want to avoid high-interest rates associated with personal loans or credit cards. It allows you to take a loan against the equity of your home and make payments over time. 

However, like any lending agreement, there are risks involved. If you fail to make payments on your second mortgage loan, your lender could foreclose on your property and sell it to recoup their investment.

Taking out a second mortgage means you have two monthly mortgage payments instead of one, which can put an added financial strain on top of already existing struggles with debt or living expenses.

  • Home Loan 

Depending on requirements, you can apply for home loans of different sizes, ranging from small to medium to large. These loans come with competitive mortgage loan interest rates in india and comfortable repayment periods while offering a tax benefit.

Home loans provide you with the opportunity to remodel, upgrade, or build a new house, purchase land to build a house, construct a house on already owned land, or even purchase a property that is under construction, whether it be a new or resale property.

Additionally, you must use the funds taken as a loan for only the purpose of constructing a house. The funds cannot be used for any other purpose, whether personal or business-related.

  • Reverse Mortgage 

This type of home loan allows homeowners, typically 62 years or older, to convert a part of their equity into cash without having to sell their property. This option is often used by seniors who need extra money to cover living expenses, medical bills, or other costs during retirement. With a reverse mortgage, the borrower receives payments from the lender instead of making monthly payments on the loan.


There is no single mortgage loan that can be considered universally the safest. This is because the type of loan best for you may not be the best choice for another. Therefore, it is essential to consider all factors when you apply for mortgage loan.