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1. Simple mortgage
In a simple mortgage, the ownership of the mortgaged property is not transferred from the mortgagor to the mortgagor. In the process of repaying the loan, if the mortgagor fails to do so, the mortgagor can sell the property and recover the loan amount from the sale.
2. Mortgage by conditional sale
When a person decides to mortgage his immovable property as security, the ownership of the property is not transferred, but the mortgagee can, under certain conditions, sell the property. This is called mortgage by conditional sale. It means that the mortgagor has conditionally sold his property to the mortgagee. This conditional sale will become an absolute sale if the mortgagor fails to repay the loan. On the other hand, if the mortgagor repays the money on or before the due date, their property is fully recovered from the mortgagor and thus cannot be sold by anyone else. A mortgagor gets more benefits in this type of mortgage as compared to a simple mortgage. In a mortgage by conditional sale, the mortgagor can outright own the property if the money is not repaid.
3. Consumer Mortgage
In this type of mortgage, apart from using the property as a security, the mortgagor gives physical possession of the property to the mortgagor until the loan amount is repaid. Therefore, only when the loan amount is repaid, the mortgagor can get his property back. During this period, the mortgagor is entitled to collect rent and other benefits from the property.
4. English mortgage
In this type of mortgage, the mortgagor must agree to surrender his property in full possession to the mortgagor on the condition that if the mortgagor repays the loan amount on or before the due date, they will get full possession of their property from the mortgagor. can recover from.
5. Mortgage by deposit of Title Deed (Equitable Mortgage)
In this type of mortgage, the mortgagor agrees to surrender the title document of the property to the mortgagee. This is done so that security can be created for the mortgagor to receive the loan amount.
6. Asymmetrical mortgage
A nonconforming mortgage is completely different from any of the mortgages discussed above. The main feature of this mortgage is that it includes simple mortgage and usury mortgage by conditional sale. However, it is important to note that with this type of mortgage, possession may or may not be given.
Now that you know about the different mortgages, go ahead and get one for yourself. Remember to go for the right mortgage as per the requirements of your home, and do your homework before buying a mortgage.
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