Mortgage like any other debt poses advantages and disadvantages when deciding to own a property. It is very important that the pros and cons of getting a mortgage is weighed for better decision making. Here are a few of those advantages and disadvantages you can look into to identify if getting a mortgage for your real property purchase is appropriate and a good decision.


  1. Affordability – The purchase of real properties is made affordable through mortgages. Instead of paying a lump sum amount for the price of the property, as a borrower and a buyer, you have the ability to pay for the price at a staggered basis within your budget.
  2. Cost Effective Loan – Unlike personal loans, mortgage loans are much more affordable with low interest rates due to its nature of being a secured loan. Lenders have a lien over the property being purchased and allows them to bring down the interest rates because the risk of recovering the loan amount is very low.
  3. Credit Rating – One of the most important effects of getting a mortgage and having the discipline to pay for it is increasing your credit score. As long as you commit to the amortizations and having the discipline to pay off the debt, then you have nothing to worry about. A good credit rating from a mortgage can open you opportunities for other types of loans.


  1. Fees and Penalties – High fees and penalties are present on mortgage loans. These fees and penalties can actually be avoided by constantly monitoring your compliance with the terms and conditions of the contract.
  2. Larger Payment – Getting a mortgage to pay for your property doesn’t actually lessen the price to make the purchase more affordable. The total amount actually paid for the loan is much higher than the price if paid in lump sum. The additional amount that is paid is actually the interest covering the money that is being borrowed.

It is important to identify advantages and disadvantages specific to your purchase to identify if a mortgage would be beneficial.