Loan made for the purchase of a specific property. The loan is secured against the property. The beneficiary returns the loan paying instalments, up the complete extinction of the funding, according to a specific amortization plan.

Mortgages may be fixed rate, floating rate or same combination of the two, for example fixed for the first three years and then reverting to a floating rate based on same pre-specified benchmark. A variable rate can be capped, i.e. with a maximum limit or ceiling.

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