Mortgage
Today, the term mortgage is better understood when more people purchase their homes with a mortgage. The mortgage industry flourished with the world's housing market and it simply meant as a process where an individual or a business can purchase the residential and the commercial property without actually paying the total value.
The term mortgage is defined as a loan to any individual for purchasing a real estate. Here, the real estate also acts as collateral for loan.
The mortgage GDP ratio of some of the selected developing countries are as cited below in the table:
| country |
% GDP |
| Japan |
40.3% |
| Hong Kong |
37.6% |
| Singapore |
35.9% |
| Korea |
12.6% |
| China |
10.0% |
A glance of mortgage industry in some of the developed countries:
| |
Home Ownership rate |
Predominant Type of New Mortagage |
| Canada |
66% |
Variable 40% Initial fixed 60% |
| Finland |
58% |
Variable 97% |
| Germany |
42% |
Mostly Initial Fixed or Fixed |
| Italy |
80% |
Fixed 28% |
| Norway |
77% |
Variable 90% |
| UK |
70% |
Initial Fixed 28% Variable72% |
| USA |
69% |
Fixed 74% |