When you decide to finance your own home with a mortgage, it is clear that you will need finance not only for the purchase of the land and the property itself, but also, for example, for its equipment. This is what the non-purpose part of the mortgage is for.
Purpose and non-purpose part of the mortgage
The purpose part of the mortgage is for the purchase of the property, while the non-purpose part, which we also refer to as the supplementary part of the mortgage loan, can be used for anything (furnishing the property, paying property taxes, financing a vacation, or paying other obligations).
Did you know that you can arrange the non-purpose part of your mortgage over and above the concurrent purpose mortgage?
You can use the non-purpose part of your mortgage for anything
Whether you need to furnish or renovate your apartment or house, or pay property taxes, you can use the additional part of a mortgage loan to do so. This is secured by the property, just like a mortgage, and its interest rate and repayments are also usually the same as a mortgage.
Did you know that approval of the non-purpose portion of a mortgage does not require a guarantor? In addition, you can draw it in one lump sum or gradually, up to 30% of the mortgage amount.