Package Mortgage | Learn in 60 seconds

Ever been curious about package mortgages? Stick with me for just 60 seconds, and I’ll break it down for you!

What is a Package Mortgage?

A package mortgage is a type of home loan that helps you buy your home along with the personal belongings already in it, using them as loan collateral.

For example, if the home you're eyeing is currently sold for $350,000 and includes fully furnished living spaces & kitchen appliances worth $150,000, you can take a package mortgage to purchase both the home and all the personal belongings in the property.

4 Benefits Of Package Mortgages For Borrowers

Are you looking to buy a home but worried about the additional costs of furnishing it? Here are 4 compelling reasons why package mortgages might just be the solution you've been searching for!

1. Zero Cash Needed

• The great thing about package mortgages is that you don't need to use your cash to buy things like furniture or appliances for your home.

2. Bundled Payment

• Instead, you can include the cost of these items in your mortgage and pay for them all together in one monthly payment.

3. Furnished Rental Sales Appeal

• If you're thinking of renting out the property, having it fully furnished can attract more tenants because they won't need to buy any appliances themselves.

4. Profitable Rental Opportunities

• Plus, as an investor, you might be able to charge higher rent for a fully furnished property compared to others in the area.

Leah's Experience with a Package Mortgage

Leah, a first-time homebuyer, found her budget stretched thin, unable to cover the additional costs of essential appliances on top of her mortgage. Determined to find a solution, Leah sought assistance from her realtor!

1. • ➙ Intrigued by her realtor’s idea, Leah proceeded as her desired home included all necessary appliances.

   • ➙ The property was listed at $300,000, with appliances totaling $35,000. Leah made a 20% down payment, totaling $268,000.

   • ➙ Leah now enjoys her new home without the immediate financial burden of upfront appliance costs, making manageable monthly payments instead.

Package Mortgage: Is It Truly the Best Choice?

Package mortgages provide convenience by avoiding upfront expenses for new property purchases. However, it's crucial to assess your financial standing.

If you can afford furniture and appliances upfront, opting for this mortgage may incur unnecessary interest. Prioritize exploring all options to ensure an informed decision.