Go Back to Main blog page
Do You Know the 6 Types of Mortgages?
2
min read
26 views
4253 Likes
This post is written by Abhishikta Munjal
Before you go for a mortgage, ensure to check the 6 mortgage types. Let find them out now!
What are mortgage loans
Section 58 a of the TRANSFER OF PROPERTY ACT, 1882, defines mortgage as, mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability. The bold letters signifies the essential elements for the creation of valid mortgage in favor of the lender over the immoveable property.
Types of Mortgages:
There are six kinds of mortgages which are detailed as under:
1. Simple Mortgage: It has below characteristics:-
i That the mortgagor must have bound himself personally to repay the loan
ii That to secure the loan he has transferred to the mortgagee the right to have the specific immovable property sold in the event of his having failed to repay
iii That the possession of the property is not delivered to the lender.
2. Mortgage by Conditional Sale: It defined as a situation, where the mortgagor ostensibly sells the mortgaged property
i on the condition that on default of payment of the mortgage money loan on a certain date the sale shall become absolute or
ii on condition that on such payment being made the sale shall become void or,
iii on the condition that in such payment being made the buyer shall transfer the property to the seller,
PROVIDED that no such transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which affects or purports to affect the sale
This kind of mortgage came into vogue in India during Muslim rule and was given legal recognition in the Bengal Regulation Act, 1978.
3. Unsufructuary Mortgage: It has below characteristics:-
i That the possession of the property is delivered to the mortgagee;
ii That the mortgagee is to get rents and profits in lieu of the interest or principal or both;
iii That no personal liability is incurred by the mortgagor and
iv The mortgagee cannot foreclose or sue for sale.
v That no time limit can be fixed expressly during which the mortgage is to subsist.
This is not prevalent in India
4. English Mortgage: It has below characteristics:-
i That the mortgagor should bind himself to repay the mortgage money/loan on a certain day;
ii That the mortgaged property should be transferred absolutely to the mortgagee ; and
iii That such absolute transfer should be made subject to a proviso that the mortgagee will recover the property to the mortgagor, upon the payment by him of the mortgage money on the appointed day
The difference between the mortgage by conditional sale and English mortgage is that in English mortgage, the mortgagor binds him personally to repay the money.
5. Mortgage by Deposit of Title Deeds:
In England and popularly in India, this mortgage is called the equitable mortgage. Under the definition under Section 58 f of Transfer of Property Act, 1882, the essential requisites of such mortgage are:
i a debt should be there
ii deposit of the title deed with the lender most essential
iii said deposit is with intention that the said title deed shall be security for the debt.
Section 96 of the Transfer of Property Act, 1882 places mortgages by deposit of title deeds on the same footings as simple mortgages. As such, the security can, like a simple mortgage can be enforced by a suit for sale of mortgaged property, of course, by the process of the law. And this kind of mortgage does not require registration and is at par with any other legal mortgage.
6. Anamolous Mortgage:
A mortgage which is not a simple mortgage, a mortgage by conditional sale, an usufructuary, an English mortgage or a mortgage by deposit of title deeds within the meaning of Section 58 of Transfer of Property Act is an Anomalous mortgage.
Tags
Latest Blogs
Financial Education
Tips to Buy Affordable Homes in India
Read Blog
IIFL Home Loans | Oct 20 10:06 AM
36 views
|
0 Likes
Financial Education
Section 80EEA for Under-Construction Properties - How to Claim Tax Benefits
Read Blog
IIFL Home Loans | Oct 20 10:06 AM
232 views
|
0 Likes
Financial Education
Understanding the Different Kinds of Loan Frauds and Staying Vigilant
Read Blog
IIFL Home Loans | Aug 04 7:08 AM
79 views
|
0 Likes
Financial Education
90 views
|
0 Likes
Financial Education
Unlock the Value of Your Property with a Loan: No ITR Required
Read Blog
IIFL Home Loans | May 19 6:42 AM
2,527 views
|
0 Likes
Financial Education
How to Improve Your Credit Score Before Applying for Home Loan
Read Blog
IIFL Home Loans | Apr 12 6:27 AM
145 views
|
0 Likes
Financial Education
1 view
|
0 Likes
Financial Education
Investment In NCD May Manifest A Good And Safe Deal Than Equities!
Read Blog
IIFL Home Loans | Nov 23 4:12 AM
652 views
|
0 Likes
Financial Education
NCD Vs FD: What Is The Difference Between The Two?
Read Blog
IIFL Home Loans | Nov 23 4:12 AM
1 view
|
0 Likes
Financial Education
How can Current Loans and Credit Report- CIBIL impact your loan eligibility?
Read Blog
IIFL Home Loans | Nov 02 9:30 AM
72 views
|
0 Likes
Financial Education
5 Growing Job Opportunities In Fintech Domain
Read Blog
IIFL Home Loans | Sep 14 8:53 AM
98 views
|
0 Likes
Financial Education
Impact Of COVID - 19 On Finance Industry
Read Blog
IIFL Home Loans | May 27 2:45 PM
59 views
|
0 Likes
Financial Education
Myth Vs Facts - RBI COVID-19 Moratorium
Read Blog
IIFL Home Loans | May 27 2:45 PM
39 views
|
0 Likes
Financial Education
5 Books You Can Read While At Home If You Are Bored
Read Blog
IIFL Home Loans | Apr 27 4:30 PM
62 views
|
0 Likes
Financial Education
All about the Angikaar Campaign - What is it, How Does it Work, Benefits & More
Read Blog
IIFL Home Loans | Jan 03 5:30 PM
83 views
|
0 Likes
Financial Education
PMAYU: Your Dream Home Just Got Bigger by 33%
Read Blog
IIFL Home Loans | Jun 13 3:30 PM
105 views
|
0 Likes
Financial Education
Best Ways To Improve Your Home On Low Budget
Read Blog
IIFL Home Loans | May 23 6:30 PM
38 views
|
0 Likes
Financial Education
5 Things to Consider Before Refinancing a Home Loan
Read Blog
IIFL Home Loans | Feb 21 3:30 PM
90 views
|
0 Likes
Financial Education
Recruitment Trends in Housing Finance Sector
Read Blog
IIFL Home Loans | Feb 05 11:00 AM
24 views
|
0 Likes
Financial Education
Smart Cities of India- Mission 2022
Read Blog
IIFL Home Loans | Jan 29 6:15 PM
59 views
|
0 Likes
Financial Education
38 views
|
0 Likes
Financial Education
The Benefits of PMAY
Read Blog
IIFL Home Loans | Jan 23 4:15 PM
338 views
|
0 Likes
Financial Education
Safety Tips for Homes
Read Blog
IIFL Home Loans | Jan 23 3:45 PM
3,050 views
|
0 Likes
Financial Education
Vastu and Astrology Tips for Your Home Design
Read Blog
IIFL Home Loans | Jan 23 2:15 PM
107 views
|
0 Likes
Financial Education
Read About Home Decor Ideas for Small Spaces - IIFL Finance Blogs
Read Blog
IIFL Home Loans | Dec 28 3:00 PM
21 views
|
0 Likes
Financial Education
Read About DDA Aawasiya Yojana 2017
Read Blog
IIFL Home Loans | Dec 28 12:15 PM
20 views
|
0 Likes
Financial Education
16 views
|
0 Likes
Financial Education
Read More About CLSS Scheme of PMAY
Read Blog
IIFL Home Loans | Dec 27 2:45 PM
59 views
|
0 Likes
Financial Education
Rent Vs Buy: To Rent or Buy a Home?
Read Blog
IIFL Home Loans | Dec 19 11:45 AM
23 views
|
0 Likes
Financial Education
Own a Home with Pradhan Mantri Awas Yojana
Read Blog
IIFL Home Loans | Dec 19 11:00 AM
77 views
|
0 Likes
Financial Education
What is the perfect CIBIL score for a home loan?
Read Blog
IIFL Home Loans | Dec 04 12:15 PM
526 views
|
0 Likes
Financial Education
Things That Can Go Wrong With Your CIBIL Report
Read Blog
IIFL Home Loans | Dec 04 11:15 AM
39 views
|
0 Likes
Financial Education
Is your CIBIL score getting you down? Cibil Score
Read Blog
IIFL Home Loans | Dec 04 10:45 AM
1 view
|
0 Likes
Financial Education
How to get a personal loan with low CIBIL score?
Read Blog
IIFL Home Loans | Dec 04 10:30 AM
200 views
|
0 Likes
Financial Education
Why You Should Consider Raj Nagar Extension for an Investment?
Read Blog
IIFL Home Loans | Nov 15 12:45 PM
31 views
|
0 Likes
Financial Education
What are the Requirements for availing PMAY Subsidy?
Read Blog
IIFL Home Loans | Oct 09 5:00 PM
73 views
|
0 Likes
Financial Education
Dwarka Expressway: Booming High
Read Blog
IIFL Home Loans | Sep 01 1:15 PM
30 views
|
0 Likes
Financial Education
Independence Day Anniversary: Housing Sector on a Path to Development
Read Blog
IIFL Home Loans | Aug 24 12:30 PM
18 views
|
0 Likes
Financial Education
Franking and Stamping: What the difference?
Read Blog
IIFL Home Loans | Aug 14 2:45 PM
118 views
|
0 Likes
Financial Education
Customer Service Department Driving Revenue & Profitability
Read Blog
IIFL Home Loans | Jul 07 2:45 PM
58 views
|
0 Likes
Financial Education
Challenges towards Housing for All by 2022
Read Blog
IIFL Home Loans | Jul 07 11:15 AM
66 views
|
0 Likes
Financial Education
Policies Increase the Efficiency of the Work Process!
Read Blog
IIFL Home Loans | Jun 01 12:45 PM
22 views
|
0 Likes
Financial Education
Do You Know the 6 Types of Mortgages?
Read Blog
IIFL Home Loans | Apr 27 2:00 PM
26 views
|
0 Likes
Financial Education
Appraisals On Your Way: 5 Smart Ways To Invest Your Annual Bonus
Read Blog
IIFL Home Loans | Apr 27 11:30 AM
23 views
|
0 Likes
Financial Education
What Are The Benefits Of Buying A House in 20s
Read Blog
IIFL Home Loans | Apr 06 5:45 PM
31 views
|
0 Likes
Financial Education
How Union Budget 2017-18 Benefits India Middle Class Population
Read Blog
IIFL Home Loans | Mar 30 12:30 PM
24 views
|
0 Likes
Financial Education
What is The Significance Of A Credit Score For Buying A House?
Read Blog
IIFL Home Loans | Mar 10 9:45 AM
22 views
|
0 Likes
Financial Education
What Is The Right Age To Buy A Home?
Read Blog
IIFL Home Loans | Jan 31 4:30 PM
45 views
|
0 Likes
Financial Education
Everything You Need to Know About Your CIBIL Score
Read Blog
IIFL Home Loans | Nov 02 12:00 PM
190 views
|
0 Likes
Financial Education
10 Simple Ways to Make Your Home a Happier Place
Read Blog
IIFL Home Loans | Oct 29 2:30 PM
193 views
|
0 Likes
Financial Education
Hacked!!! Why Indian Sailors Get a Loan Rejection?
Read Blog
IIFL Home Loans | Oct 21 2:15 PM
35 views
|
0 Likes
Financial Education
81 views
|
0 Likes
Financial Education
You Need Good CIBIL Score for Home Loans
Read Blog
IIFL Home Loans | Aug 28 4:00 PM
237 views
|
0 Likes
Financial Education
The Importance of Home in Your Daily Lives
Read Blog
IIFL Home Loans | Jul 29 3:30 PM
51 views
|
0 Likes
Financial Education
Kushal Bhartiyo! Labh Uthaye Pradhan Mantri Awas Yojana Ka Aur Banaye Apna Khud ka Ghar
Read Blog
IIFL Home Loans | May 15 3:15 PM
70 views
|
0 Likes
Financial Education
This Festive Season, zaadi from Excess Cost & Give Your Home Smart Look
Read Blog
IIFL Home Loans | Apr 23 9:45 AM
30 views
|
0 Likes
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report
Most Read Blogs
Financial Education
10 Simple Ways to Make Your Home a Happier Place
Read Blog
IIFL Home Loans | Oct 29 2:30 PM
193 views
|
0 Likes
Financial Education
5 Books You Can Read While At Home If You Are Bored
Read Blog
IIFL Home Loans | Apr 27 4:30 PM
62 views
|
0 Likes
Financial Education
5 Growing Job Opportunities In Fintech Domain
Read Blog
IIFL Home Loans | Sep 14 8:53 AM
98 views
|
0 Likes
Financial Education
5 Things to Consider Before Refinancing a Home Loan
Read Blog
IIFL Home Loans | Feb 21 3:30 PM
90 views
|
0 Likes
Financial Education
All about the Angikaar Campaign - What is it, How Does it Work, Benefits & More
Read Blog
IIFL Home Loans | Jan 03 5:30 PM
83 views
|
0 Likes
Financial Education
Appraisals On Your Way: 5 Smart Ways To Invest Your Annual Bonus
Read Blog
IIFL Home Loans | Apr 27 11:30 AM
23 views
|
0 Likes
Financial Education
Best Ways To Improve Your Home On Low Budget
Read Blog
IIFL Home Loans | May 23 6:30 PM
38 views
|
0 Likes
Financial Education
Challenges towards Housing for All by 2022
Read Blog
IIFL Home Loans | Jul 07 11:15 AM
66 views
|
0 Likes
Financial Education
Customer Service Department Driving Revenue & Profitability
Read Blog
IIFL Home Loans | Jul 07 2:45 PM
58 views
|
0 Likes
Financial Education
Do You Know the 6 Types of Mortgages?
Read Blog
IIFL Home Loans | Apr 27 2:00 PM
26 views
|
0 Likes
Financial Education
Dwarka Expressway: Booming High
Read Blog
IIFL Home Loans | Sep 01 1:15 PM
30 views
|
0 Likes
Financial Education
Everything You Need to Know About Your CIBIL Score
Read Blog
IIFL Home Loans | Nov 02 12:00 PM
190 views
|
0 Likes
Financial Education
Franking and Stamping: What the difference?
Read Blog
IIFL Home Loans | Aug 14 2:45 PM
118 views
|
0 Likes
Financial Education
Hacked!!! Why Indian Sailors Get a Loan Rejection?
Read Blog
IIFL Home Loans | Oct 21 2:15 PM
35 views
|
0 Likes
Financial Education
81 views
|
0 Likes
Financial Education
How can Current Loans and Credit Report- CIBIL impact your loan eligibility?
Read Blog
IIFL Home Loans | Nov 02 9:30 AM
72 views
|
0 Likes
Financial Education
How to get a personal loan with low CIBIL score?
Read Blog
IIFL Home Loans | Dec 04 10:30 AM
200 views
|
0 Likes
Financial Education
How to Improve Your Credit Score Before Applying for Home Loan
Read Blog
IIFL Home Loans | Apr 12 6:27 AM
145 views
|
0 Likes
Financial Education
How Union Budget 2017-18 Benefits India Middle Class Population
Read Blog
IIFL Home Loans | Mar 30 12:30 PM
24 views
|
0 Likes
Financial Education
Impact Of COVID - 19 On Finance Industry
Read Blog
IIFL Home Loans | May 27 2:45 PM
59 views
|
0 Likes
Financial Education
Independence Day Anniversary: Housing Sector on a Path to Development
Read Blog
IIFL Home Loans | Aug 24 12:30 PM
18 views
|
0 Likes
Financial Education
Investment In NCD May Manifest A Good And Safe Deal Than Equities!
Read Blog
IIFL Home Loans | Nov 23 4:12 AM
652 views
|
0 Likes
Financial Education
Is your CIBIL score getting you down? Cibil Score
Read Blog
IIFL Home Loans | Dec 04 10:45 AM
1 view
|
0 Likes
Financial Education
Kushal Bhartiyo! Labh Uthaye Pradhan Mantri Awas Yojana Ka Aur Banaye Apna Khud ka Ghar
Read Blog
IIFL Home Loans | May 15 3:15 PM
70 views
|
0 Likes
Financial Education
90 views
|
0 Likes
Financial Education
Myth Vs Facts - RBI COVID-19 Moratorium
Read Blog
IIFL Home Loans | May 27 2:45 PM
39 views
|
0 Likes
Financial Education
NCD Vs FD: What Is The Difference Between The Two?
Read Blog
IIFL Home Loans | Nov 23 4:12 AM
1 view
|
0 Likes
Financial Education
Own a Home with Pradhan Mantri Awas Yojana
Read Blog
IIFL Home Loans | Dec 19 11:00 AM
77 views
|
0 Likes
Financial Education
38 views
|
0 Likes
Financial Education
PMAYU: Your Dream Home Just Got Bigger by 33%
Read Blog
IIFL Home Loans | Jun 13 3:30 PM
105 views
|
0 Likes
Financial Education
Policies Increase the Efficiency of the Work Process!
Read Blog
IIFL Home Loans | Jun 01 12:45 PM
22 views
|
0 Likes
Financial Education
Read About DDA Aawasiya Yojana 2017
Read Blog
IIFL Home Loans | Dec 28 12:15 PM
20 views
|
0 Likes
Financial Education
Read About Home Decor Ideas for Small Spaces - IIFL Finance Blogs
Read Blog
IIFL Home Loans | Dec 28 3:00 PM
21 views
|
0 Likes
Financial Education
Read More About CLSS Scheme of PMAY
Read Blog
IIFL Home Loans | Dec 27 2:45 PM
59 views
|
0 Likes
Financial Education
Recruitment Trends in Housing Finance Sector
Read Blog
IIFL Home Loans | Feb 05 11:00 AM
24 views
|
0 Likes
Financial Education
16 views
|
0 Likes
Financial Education
Rent Vs Buy: To Rent or Buy a Home?
Read Blog
IIFL Home Loans | Dec 19 11:45 AM
23 views
|
0 Likes
Financial Education
Safety Tips for Homes
Read Blog
IIFL Home Loans | Jan 23 3:45 PM
3,050 views
|
0 Likes
Financial Education
Section 80EEA for Under-Construction Properties - How to Claim Tax Benefits
Read Blog
IIFL Home Loans | Oct 20 10:06 AM
232 views
|
0 Likes
Financial Education
Smart Cities of India- Mission 2022
Read Blog
IIFL Home Loans | Jan 29 6:15 PM
59 views
|
0 Likes
Financial Education
The Benefits of PMAY
Read Blog
IIFL Home Loans | Jan 23 4:15 PM
338 views
|
0 Likes
Financial Education
The Importance of Home in Your Daily Lives
Read Blog
IIFL Home Loans | Jul 29 3:30 PM
51 views
|
0 Likes
Financial Education
Things That Can Go Wrong With Your CIBIL Report
Read Blog
IIFL Home Loans | Dec 04 11:15 AM
39 views
|
0 Likes
Financial Education
This Festive Season, zaadi from Excess Cost & Give Your Home Smart Look
Read Blog
IIFL Home Loans | Apr 23 9:45 AM
30 views
|
0 Likes
Financial Education
Tips to Buy Affordable Homes in India
Read Blog
IIFL Home Loans | Oct 20 10:06 AM
36 views
|
0 Likes
Financial Education
Understanding the Different Kinds of Loan Frauds and Staying Vigilant
Read Blog
IIFL Home Loans | Aug 04 7:08 AM
79 views
|
0 Likes
Financial Education
Unlock the Value of Your Property with a Loan: No ITR Required
Read Blog
IIFL Home Loans | May 19 6:42 AM
2,527 views
|
0 Likes
Financial Education
Vastu and Astrology Tips for Your Home Design
Read Blog
IIFL Home Loans | Jan 23 2:15 PM
107 views
|
0 Likes
Financial Education
1 view
|
0 Likes
Financial Education
What Are The Benefits Of Buying A House in 20s
Read Blog
IIFL Home Loans | Apr 06 5:45 PM
31 views
|
0 Likes
Financial Education
What are the Requirements for availing PMAY Subsidy?
Read Blog
IIFL Home Loans | Oct 09 5:00 PM
73 views
|
0 Likes
Financial Education
What is the perfect CIBIL score for a home loan?
Read Blog
IIFL Home Loans | Dec 04 12:15 PM
526 views
|
0 Likes
Financial Education
What Is The Right Age To Buy A Home?
Read Blog
IIFL Home Loans | Jan 31 4:30 PM
45 views
|
0 Likes
Financial Education
What is The Significance Of A Credit Score For Buying A House?
Read Blog
IIFL Home Loans | Mar 10 9:45 AM
22 views
|
0 Likes
Financial Education
Why You Should Consider Raj Nagar Extension for an Investment?
Read Blog
IIFL Home Loans | Nov 15 12:45 PM
31 views
|
0 Likes
Financial Education
You Need Good CIBIL Score for Home Loans
Read Blog
IIFL Home Loans | Aug 28 4:00 PM
237 views
|
0 Likes
Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.