What points you must consider when choosing a mortgage to get into this business?
The elements to get a mortgage are analyzed in this document, in order to get a better understanding of them.
The amount to be lend.
Banks usually granted without additional guarantees, up to 80% of the appraised value of the property. If with your current savings, you reach the 20% left, you are in the profile that banks consider affordable, otherwise you will need very high mortgage rates or additional guarantees.
The mortgage interest rates.
The banks rates are divided most of the times in 3 different groups: variable, fixed and mixed. With the variable rates one of the benefits is that when the rates are low you will pay a cheaper fee, but in the same way when rates are high you will pay more. The fixed rates most of the times are more expensive than the previous ones, but this will give you the confidence to pay the same amount of money all the time. The mixed rates usually will be fixed in the first two to five years of the loan and after that time there will change to a variable interest rate.
The amortization of the mortgage.
The increase of interest over time comes when you chose longer repayment periods (as you can imagine the rise of the final mortgage amount grows as well), nevertheless on the contrary if you chose a shorter repayment period of time the interest will be less since the main amount is returning to the original lender faster (furthermore the total cost of the mortgage decreases); from this perspective a higher quota has to be expected since more capital is amortized in less time.
Other related products
Some banks offer other products that can improve the general conditions of your mortgage; this products are credit cards, insurance (multi-risk and life); do not forget to ask for the cost of each one of these products and compare them with other similar opportunities in the market because some times they add extra expenses to the package and the benefits are not easy to see.
The bank part: commissions.
Commissions are like any other factor in business, negotiable, because some banks can charge more than others, remember that there are just five types of commissions. Opening and study, partial redemption, cancellation, subrogation (change of entity) and modification (novation in financial terms), always try to negotiate this commissions because many people I know have had some commissions reduced to zero.