What is the difference between a mortgage and a loan?

Loans have a little higher interest rate than mortgages. A mortgage can be a loan where the borrower borrows money from the bank for consumer areas or other business purposes using the purchased home as collateral. While a mortgage loan can only be used for the purchase of a home when applying for a loan. To apply for the loan requires the borrower must provide the home ownership certificate, land use right and other related documents, and then use the documents to apply for other title deeds, through the audit, eligible to apply for the home mortgage loan. Therefore, only after the delivery of the house to get the ownership certificate can apply for a loan. The mortgage can not get the house title and other documents, just bring the required purchase contract and other information can apply for a mortgage, and then apply for other title deeds as collateral security. The traditional definition of mortgage refers to the purchaser to buy property as collateral from the bank to obtain a loan, the purchaser in accordance with the mortgage contract stipulated in the return of the way and period of installments to the bank, the bank charges interest at a certain rate. If the lender defaults, the bank has the right to take possession of the house. This means that the buyer does not in fact really have the right to the house he buys until he has paid off the loan, and if he defaults and does not return the loan by the due date, the bank can deal with it according to the law.

1, "mortgage" is the English word "Mortgage" of the Cantonese translation, pronounced àn jiē, refers to a kind of purchase or shopping loan, to buy a house or goods as collateral to the bank loan, and then pay back in installments. It is a type of housing secured loan, which refers to a personal housing loan that is secured by the homebuyer's purchased home and guaranteed by the real estate development enterprise from which the home is purchased. It involves the mortgagor transferring the title of the pre-purchased property to the beneficiary of the mortgage (the bank) as a guarantee of repayment, and after the repayment, the beneficiary of the mortgage transfers the title of the property to the mortgagor.

2, loan is a bank or other financial institutions at a certain interest rate and must be returned and other conditions of lending monetary funds a form of credit activity. Loans in a broad sense refers to loans, discounting, overdrafts and other lending funds in general. Banks through the loan will be concentrated currency and monetary funds put out, can meet the expansion of social reproduction on the need for additional funds, promote economic development, at the same time, the bank can also be obtained from the loan interest income, increase the bank's own accumulation.