Purchasing a house is no doubt one of the most critical decisions and costliest financial investments that one may make in a lifetime. Owning real estate offers you myriad advantages, such as asset appreciation, ownership, equity build-up, sustainable income generation, tax waivers, and more.

A home represents a long-term commitment in terms of money and you can certainly expect the market worth of your house to rise steadily as the mortgage secured against it reduces over time. Since you are essentially investing in a long-term fixed asset through homeownership and you have a stake in it, you will not only own the property but also start building equity in the same over time as you repay the mortgage.

With your house accumulating enough equity and as your debt decreases, you will be able to borrow money against it through a Home Equity Line of Credit (HELOC) or by refinancing your home loan. Leveraging your property to secure a home equity mortgage effectively allows you to create a retirement corpus, finance the costs of a major home improvement, and pay for college tuition for your children, not to mention the liberty to consolidate high-interest debts from other loan/s and/or credit cards.

Depending on your circumstances and requirements, you may opt for a fixed-rate or a variable-rate mortgage. Whilst your interest rate will remain constant over the life of your home loan in the former case, it will keep fluctuating (increasing and decreasing) based on various financial (for instance, global market performance) as well as non-financial variables (for instance, an uncertain market due to the onset of the ongoing COVID-19 pandemic) when you select the latter. Note that your property taxes and the interest incurred on your mortgage are both tax-deductible in general. Furthermore, home appraisal expenses and loan application fees may be deducted as well from your taxable income.

Call us now for any queries or further information on how you may benefit by obtaining a home loan from Royal King Mortgages!