MORTGAGE ADVICE
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is a mortgage in the context of Indian banking?
A mortgage is a transfer of interest in immovable property to secure a loan or debt obligation, as defined under Section 58 of the Transfer of Property Act, 1882.
What is an anomalous mortgage under the Transfer of Property Act, 1882?
A mortgage that does not fit any standard category defined by law.
What are the six types of mortgages recognized under the Transfer of Property Act, 1882?
The six types are: Simple Mortgage, Mortgage by Conditional Sale, Usufructuary Mortgage, English Mortgage, Equitable Mortgage (Mortgage by Deposit of Title Deeds), and Anomalous Mortgage.
What is the maximum LTV ratio allowed by RBI for home loans above Rs 75 lakh?
RBI prescribes maximum 75% LTV for loans above Rs 75 lakh.
What is an Equitable Mortgage and how is it created?
An Equitable Mortgage is created by the deposit of title deeds of immovable property with the lender, without any written document or registration requirement, making it the most common form used by banks.
What is the difference between a first mortgage and a second mortgage?
First mortgage has priority over second mortgage in case of default.
What is the difference between a Simple Mortgage and English Mortgage?
In a Simple Mortgage, the mortgagor binds himself to repay and grants the mortgagee right to sell the property in case of default without possession; in an English Mortgage, the mortgagor transfers the property absolutely to the mortgagee with a condition to re-transfer upon repayment.
What does the term 'title search' mean in mortgage transactions?
Verification of legal ownership and freedom from prior encumbrances on property.
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