Here’s how you benefit from a blanket loan

When a builder purchases multiple parts of real estate simultaneously, he takes loan under the umbrella of a single mortgage. This finance scheme is referred to as blanket mortgage.


  • This is an efficient, cost-effective and hassle free (paper work is less) option for real estate developers. This is because finances are borrowed from one lender.
  • Lender has one mortgage against multiple properties. Leander will be able to sell a part of the leased property and make the payment towards the sold part. Balance loan amount is calculated against the parts which have not been sold.
  • Capital Expenditure Reserve Accounts is established by some lenders under the program. This amount is used in case of any repairs or replacements. These reserves are helpful in case of commercial and investment properties.
  • If an individual makes a decision to apply, s/he can purchase a new home before selling the existing one. This way the individual will be able to use the equity from the existing home and finance the new one.
  • This is a better investment for a bank or investor since this type of mortgage allows bargaining better interest rates. In case of any defaults, individual follow up is not needed to be done. Property will continue to be subject to foreclosure.