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Mortgage Loan

Such loans are deemed "securable" by lenders because the borrower puts his or her property up as collateral. If the borrower does not pay back the secured loan, the property can go into foreclosure and the borrower can lose the property.


As such, getting a secured loan is a serious financial matter, you need to plan and decide the right secured loan for your unique needs, along with a solid plan to pay the money back.

Let's talk benefits

Lower interest rate

Get to enjoy a lower interest rate than unsecured loans, making secured loans a good choice for borrowers on a tight budget.

Easier loan approvals 

Even with weak credit scores, you can still find it easier to get a secured loan.

Expanding financial options

Have the choice to expand financial options to ask for a bigger loan amount.


Difference between

Mortgage and Loan

The word mortgage only reflects that the loan is secured, and you have pledged a property as collateral against the sum of money or loan from a lender. Loans can be secured as well as unsecured and they can be for short as well as long durations.


If one fail to service the mortgage loan or default by the borrower, the lender reserves the right to sell off the property that has been set aside as collateral to recover its money. There are many similarities between loan and mortgage though it is their differences that many people remain confused about.


If you need a small sum of money, lenders are more ready to give it to you without any collateral based on your creditability as per your credit report. Such loans are unsecured loans and you need to pay a higher interest and full repayment needs to be done in small time duration. These loans are usually referred to as personal loans and the borrower may use them for his/her personal needs such as buying a consumer good, a car, or any other thing that is valuable.

To secure a loan from a lender for business purposes is more difficult, and many more formalities are required to be fulfilled such as financial statements of the business for the last three years, record of bank transactions in the form of statement of account, a project report summarising how the money is going to be utilised and how the borrower proposes to pay back the loan with the profit earned etc.

On top of all these documents, lenders may insist on collateral to feel secured. In such cases, you are in effect using your own assets or assets owned by the business to get the loan and the lender is secured in the sense that in the case of any loss in your endeavor, it can recover the money lent by keeping the assets. This then becomes a kind of mortgage loan.


In general, the word mortgage has become popular because of home loans where the property remains in the name of the lender providing money for the purchase of the property. If you are talking about a home loan, you get to enjoy the luxury of living in it with your family though the home is technically the property of the lender till its repayment is complete. This is a mortgage loan as the property is mortgaged to get the loan. The lender retains the right of foreclosure of the loan if you default or are unable to pay back the monthly instalment that have been set for repayment.

Purchase Loan vs

 Refinance Mortgages

A purchase loan is the loan that you obtain when borrowing money from a mortgage lender to purchase a property.


A refinance loan, on the other hand, are used to “refinance” an existing mortgage. You can have a purchase mortgage without a refinance loan. You cannot have a refinance without a purchase mortgage in the first place (as there would be nothing to refinance!).

How to tell the difference? The differentiating element is in the purpose of the two loans:


  • Purchase mortgages enable you to own a property

  • Refinances empower you to change the terms of your original mortgage, which you may want to do for a variety of reasons

You might want to refinance to take advantage of the interest rate if interests today is lower than your original loan. Other reasons to finance your mortgage, but not limit to the below:


  • Convert to a Flexi rate mortgage to a Fixed rate. If you believe interest rate will go up, you may consider converting it to a fixed rate now so that you can save some interest costs.


  • Free up your equity. You can refinance your mortgage to “take cash out” for major expenses, such as investments or new business ventures, etc.


  • Consolidate higher interest debt. If you must service large unsecured loans, you may want to refinance your mortgage to pay off those debts.


  • Get cash to buy another property. You can use the money from your refinance for down payment to purchase another property or for other business investments.

Other considerations before you decide to refinance:


  • Do you really need the extra cash

  • Costs and fees relating to settle original mortgage and for processing the refinance loan; as you will need to do a property valuation again, legal fees, etc


If you are thinking about refinancing, you will need to know your break-even point, or how long will it take for a reduction in your monthly payments to equal the costs of refinancing?


Example, if you have spent $5,000 in closing costs, and save $200 in monthly payments, it will take you 25 months to reach your break-even point. If you plan to sell your property before this point is reached, you could be losing money on your refinance.


Use a mortgage calculator to help you since our financial situation and goals for refinancing are different. The way to tell how much you will be able to save depends completely on your current loan versus the loan you are looking to secure.


Consider working with BizBridge. We can help match you to a lender that fits your needs, let you know if you will get a better deal regardless if you choose to mortgage or refinance.

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