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The main components of the loan – Moneywise Global
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Debt Management and Leverage

Residential property mortgages

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The main components of the loan

The main components of the loan will be as follows:

1. The parties to the loan – the borrower and the lender.

2. The terms and conditions of the loan:

  • The security for the loan, usually the house itself 
  • The borrowed amount
  • The deposit
  • The interest rate
  • The fees 
  • The timeframe in which the loan has to be repaid
  • The amount of the repayment (whether it is interest only or includes a repayment of the principal sum borrowed) and the frequency
  • The penalties if a loan is repaid early or not paid on time.

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