Mortgage loans are binding contracts issued by financial establishments whereby you enter into an agreement to repay borrowed money at a certain rate of interest by a specific time.

The interest involved in mortgage loans is the cost of borrowing this money from the bank. Interest is usually linked in some manner to the base rate of mortgage loans.

With a good credit history, it is possible to get up to 2% below the base rate.

There are different ways in which interest rates can be added to mortgage loans:

• With Variable Rate Mortgage Loans, your interest rate is connected with the base home loan rate. This means that your installments rise and fall in accordance with the base rate.
• The interest in Capped Rate Mortgage Loans falls with the base home loan rate but has a maximum interest rate built into the agreement.
• Reducing Mortgage Loans have the benefit of a definite fall in your interest rate every six months, regardless of the base home loan rate.
• You also have the option of repaying only your interest loan. This means that your monthly payments are lower, but it also means that your home will not belong to you at the end of the payment period. You will have to sell your house to repay the bank at this point, unless you have enough money saved up.

CKM realises the importance of reliable advice when you are seeking a suitable home loan. Purchasing a home and applying for mortgage loans is already a stressful and time consuming effort without the added worry of making the wrong decisions.

When you apply online with CKM, our experienced and knowledgeable bond originators can get to work on finding you the best options regarding mortgage loans. We will also negotiate the best possible interest rates for you. We will then recommend to you the most suitable options for you and advise you on how to repay your loan as fast as possible.