Here is the List of Properties You Can Pledge For a Mortgage Loan?

Mortgage Loan

You need money every day. Without money, you cannot fulfil your day to day needs and cherished dreams. However, the problem arises when you need money more than what your financial means permit you.

A Mortgage loan is a best-suited loan for such situations. Also known as a loan against property, it allows you to deposit your property as collateral security to avail up to 60% of the property’s market value as a loan. Hence, if your property is at a prime location, you can expect a higher loan amount than someone whose property is at a remote place.

What Type of Properties Can You Pledge to Avail a Mortgage Loan?

In the same way as the documents required for mortgage loan varies among lenders, the type of properties also vary. But, the following are the broad types that almost all lenders accept while approving a mortgage loan.

Residential Property

Residential property refers to a property that is used for living, and not for business purposes. Residential properties can be self-occupied, rented, or vacant.

A self-occupied house is one in which you and your family live. You can always keep this as collateral to apply for a mortgage loan.

A rented property is one where you may or may not stay. You can also mortgage a rented property to avail the loan. However, since a tenant is protected by the provisions of the Rent Control Act, it is wise to keep the tenant in the loop while availing a mortgage loan.

You may also use a vacant residential property to avail a mortgage loan. The lender will appraise the house and inform you the loan amount you are eligible to receive.

Commercial Property

Commercial property is one you use as an office, factory, or for any other business purpose. Similar to a residential property, a commercial property can be self-occupied, rented, or vacant.

If you mortgage a commercial property that is in use, it may require less maintenance. Hence, you can use it to claim a higher loan amount, subject to the highest ceiling of 60%. Alternatively, you may use a rented or vacant property to apply for a mortgage loan.

It is good to know that, in the case of both residential and commercial property, there should be no legal dispute. Generally, if a borrower defaults on the loan wilfully, the lender may exercise their legal rights and liquidate the property to get back their capital. Hence, they require such a property that is free from any legal dispute.

Property With More Than One Owner

Sometimes, property ownership is divided among many members. You may use such property to apply for a mortgage loan. However, lenders want you to meet specific criteria for approving the loan.

Generally, lenders accept the application from borrowers like a father-son duo, mother-son duo, and brothers. In some cases, parents can also own a property with an unmarried daughter. However, ensure that you can prove the relationship while submitting the documents required for a mortgage loan.


A mortgage loan comes with a hassle-free application and approval process, low rate of interest, simple documentation, easy eligibility, and an extended loan term. By using a mortgage loan eligibility calculator, you can find out the loan amount you are eligible to avail. The knowledge of EMIs in advance can help you to negotiate skilfully with the lender.


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