Don’t Be Scared of a 30 Year Mortgage
The standard term of mortgage offered to a foreign national borrower is 30 years. Such a term can be seen as a huge burden.
Recently, however, we have seen a number of borrowers pay of their mortgage in full within the first 3 to 5 years of purchasing their home. These folks have used funds from their end of year rental profits and applied them to their outstanding mortgage balance thereby reducing the amount owed. Upon each anniversary of the mortgage the lender will then re-cast the mortgage taking into account the additional payment reducing the term of the mortgage.
Whilst it may appear daunting to take on a 30 year liability, the reality is that the borrower may never have the mortgage for the full 30 year term. It is more likely that the mortgage will only be in existence for a few years. The key is buying the right house with the right rental potential.
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