Mortgage loan and mortgage loan

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A mortgage is a long-term special purpose commitment that can only be granted for the purpose of purchasing real estate on the primary or secondary market, building a house, or buying a construction plot.

A mortgage loan can be used for any purpose, provided that it is not associated with any business activity (for this purpose, use a mortgage for companies).

Differences between a mortgage and a mortgage loan

Differences between a mortgage and a mortgage loan

Purpose of lending (a mortgage can only be taken for a purpose related to real estate, such as buying a house or flat, buying a construction plot or building a house; in the case of a mortgage, the only limitation is the need to use funds for non-business purposes).

Total commitment cost – since the mortgage can be used for any purpose, its total cost will be higher than the cost of the mortgage, although it must be honestly said that its actual interest rate (APRC) will still remain competitive with even cash loans.

Banks offer fixed mortgage rates


Usually only for the first few years of the contract. When it comes to mortgage loans, fixed rate solutions are not available on the market.

A mortgage loan is granted up to a maximum of 90% of the value of the property being its collateral – a mortgage loan, depending on the offer of a specific bank, at 50-80%.

After the mortgage, the money is transferred to the bank account indicated by the borrower. Funds obtained as part of the mortgage are usually transferred to the account of the owner of the property for which a commitment was made. An exception may be the situation when it comes to a loan for building a house.

Here the borrower has the option of disposing of funds

But he must regularly document subsequent stages of the investment and settle based on a cost estimate submitted to the bank along with a set of other credit documents.

A mortgage calculator is available on the Loan and Credit website to instantly calculate installments and a calculator to calculate your creditworthiness.

We also provide mortgage ranking and mortgage comparison. Each of these tools can effectively help you make an informed decision about the type of commitment you make.