Mortgages

When I bought my 3 room HDB flat in Commonwealth Drive, Singapore, I had to pay mortgage loans on installment basis. I borrowed money from the CPF (Central Provident Fund) to finance my small flat to stay alone. It was much better with more privacy compared to renting a room from the landlord. Sometimes you have landlords from hell and you just need breathing space. I rented for about 4 months before calling it quits and quickly got my own flat.

Mortages are loans which are put up as security or collateral to buy property. It is a loan in which the borrower (the mortgagor) offers a property and land as security to the lender (the mortgagee) until the loan is repaid. Repayments of the loan are usually made on a monthly basis over a long period of time, typically 25 years.

Before buying the flat which I stayed for about 1 year before coming back to Penang, I got home loan quotes from the planner. After he has explained in detail how much I need to pay for the installments, and calculation done properly, I then signed and bought the flat which I have since sold off for some profit.