Natalie asked 9 years ago
In term, risk, return and duration, please advise which one will leverage our profit and how it work?
1 Answers
KCLau Staff answered 9 years ago
These two loans are different in nature.
1. Personal Loan
– short to medium term (6 months to 10 years)
– higher effective interest rate ( ~9% – 20% )
– no collateral required, or pledging any asset
2. Mortgage loan
– long term (10-35 years)
– lowest effective interest rate (~4.5%)
– need to pledge your property to bank, known as “mortgage”
For profit, it depends on how good you are as an investor? how much return are you getting?