Now that you have a mortgage what next?
You make the required equity down payment, normally set at 20% of the cost of the property. If you cannot do so there are emerging options available to enable you make the down payment, such as Collateral Replacement Indemnity Insurance or CRI, or you can also access a percentage of your Retirement Savings Account (RSA) with PENCOM (subject to meeting eligibility requirements) to enable you make the down payment.
Once your application for the mortgage loan is approved and your equity payment is made you will have to begin making repayments on the loan. This will be via monthly deductions at source from your source of regular income.
In the event of partial or default payment, the mortgage lender can foreclosure the property. This means that if you are unable to make the payments for 3 or 4 consecutive months the lender has the right to take back the property and sell it to cover the debt (this is the process known as foreclosure).
With foreclosure you lose your home and likely damage your credit worthiness or affect your ability to buy a new home in the future.