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Chembur is one of the top property investment destinations in Mumbai. Situated along the harbour line, this area has witnessed tremendous growth in terms of residential spaces and infrastructure. Various sky-high buildings are coming up in this region, changing the skyline of this suburb.

This area has gained tremendous popularity among property buyers. It acts as a link between Navi Mumbai and Mumbai. Due to the eastern freeway, connectivity of this suburb has increased with other areas in the city. The freeway has reduced travel time for people.

As per the Investment Advisory Report of 2012 by Knight Frank this suburb has been listed as the third residential destination in Mumbai for property investment. The first two spots have been bagged by Ulwe and Wadala. According to the report, this area will see tremendous growth in next five years. By 2017, it will see price appreciation of 125%.

Real estate experts are of view that this location is one of the best places to invest in the Mumbai Metropolitan Region (MMR). It has seen a lot of transformation since the real estate market started picking pace. From an industrial area to a residential zone, this suburb in Mumbai has seen many changes across the years.

Growth in IT and ITES companies also helped in changing the face of this location. Many companies have set up their offices in Chembur, pushing the demand for commercial as well as residential real estate. According to property experts, establishment of IT and ITES companies has managed to revolutionize area, making it a cosmopolitan residential hub.

If you are planning to buy property in Mumbai, and there are no budget limitations, this part of the city can offer you various attractive realty options. It is being predicted that in the next three to four years, capital value of homes in this region will shoot up. Thanks to the infrastructure development (especially the eastern freeway and monorail), strategic location and proximity with other parts of the city, Chembur has managed to attract a lot of investment in real estate.

Not just good infrastructure but greenery is also an important factor due to which this part of Mumbai has become a favourite among potential buyers. It is one of the greenest suburbs of the city, boasting of open spaces and a good mix of high rise buildings and bungalows. Apart from the greenery, this area also offers a good mix of colleges, schools and hospitals. It also has public gardens, clubs and gymkhana.

Since property rates are skyrocketing, you can get 2BHK flats in Chembur between 95 Lacs to 2.5 Crore INR (as per property rates in 2013). Rates were not high few years back (in 2011, properties in this area were available at 8000 and 10,000 INR per square feet). However, infrastructural developments helped increase the rates. Today, per square feet property rate in Chembur ranges between 14000 to 27000 INR. Rates vary according to the quality of construction, location and amenities offered by the developer.

In simple terms, mortgage financing is the process of providing finance to individuals and business entities, to secure properties, and the finance is repaid through timely and consecutive monthly instalments.

To understand the mortgage finance process, you must first try and understand the basic idea behind mortgages.

Mortgage – Definition

It is a legal agreement that conveys the conditional right of ownership of an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan with the condition that the conveyance of the title becomes void upon the repayment of the debt.

Are Mortgages Legally Enforceable?

Yes, they are. In order to be legally enforceable, the mortgage must be for a defined period, and the mortgagor must have the right of redemption on payment of the debt or on before the end of that term.

Why is Mortgage Finance Common?

Here is a list of why it is the most common type of debt instruments:

>> They have a lower rate of interest (because the loan is secured);

>> They are straight forward and have standard procedures; and

>> They have a reasonably long repayment period.

What is a Security Document?

The document by which the agreement is effected is called a “Mortgage Bill of Sale” or simply just a “mortgage.”

What are the Common Mortgage Finance Types?

Real Estate Mortgage – Virtually any legally owned property can be mortgaged, although real property (land and buildings) are the most common.

Chattel Mortgage – When personal property (appliances, cars, jewellery, etc.) is mortgaged, it is called a chattel mortgage.

Second Mortgage – There are situations where it is possible to obtain finance when there is already an existing mortgage associated with the property. It is not unusual for real estate laws to require that the holder of the first mortgage agree to the creation of a second mortgage.

Who has the Right of Possession?

For real property, vehicles, and equipment, etc., the right of possession and use of the mortgaged item normally remains with the mortgagor. But, the mortgagee has the right to take possession at any time to protect his/her security interest.

What Happens in the Event of a Default?

In the event of a default, the mortgagee can:

>> Appoint a receiver to manage the property (if it is a business property), or

>> Obtain a foreclosure for a court to take possession and sell the property.

Glossary of Common Terms Used

>> Mortgagor – the borrower of funds

>> Mortgagee – the lender/credit provider of funds (e.g. a bank or credit union, etc.)

>> First Mortgage – a mortgage that has priority over all mortgages and liens except those imposed by law

>> Second Mortgage – a mortgage that is subordinate to a first mortgage

So, now that you have read this information guide, you should have a good basic understanding of mortgage finance. It will help you in obtaining the right finance for your real-estate property.