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Mortgage Market Analysis

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Market gathers the buyers and the sellers to enable the trading of merchandise to take place. There is a wide range of merchandising products which include tangible and intangible goods. A financial market is a platform in which the financial assets or securities of the intangible goods, for instance the bonds and shares or stocks being traded (Madura, 2012). According to the United Nations Conference on Trade and Development’s (Unctad) World Investment Report (2014), Malaysia has about 22 per cent increase of net Foreign Direct Investment (FDIs) in Asia which valued at US$12 billion (RM38.52 billion), compared favorably with the 9 per cent increase in global FDIs. This shows that Malaysia has been actively participating in investing in the …show more content…

Mortgage market is a place where the long-term collateralized loans can be acquired by borrowers (Mishkin & Eakins, 2000). A mortgage is a legal agreement on which the deal between the owner of the property and the borrower on a specific time payment period and interest rates as security for a loan. Similar to capital market, mortgage is in long-term and the loan is secured by real estate. A developer may get a mortgage to finance the construction of working building or a family may get a mortgage loan to buy assets like house or car. The ownership of the assets will shift to the borrower once the borrower clear the full payment of loan in some combination of principal and interest on the time it mature. A mortgage consists of several parts which are the collateral used to secure the loan, principal, interest payment, taxes and insurance. Borrower’s asset is collateral for loan once the mortgage is sign which promise will pay for the principal and interest. A principal is the amount which the borrower borrows to buy the assets. Interest is the percentage charge by the owner on the money …show more content…

It is consisting of interlocking rules and steps, so it is the judgments of currency trading. This system is managing by International Monetary Fund (IMF). International financial system consists of four components which are exchange arrangement and exchange rates; international payments and transfer relating to current international transactions; international capital movements; and international reserves. The system established is to prevent manipulated of the exchange rate. “A balance of payments position that does not, and is not likely to, give rise to disruptive exchange rate movements” (IMF, 2007). A monetary system is the set of institutions by which a government provides money in a country's economy. This monetary system is based on the money supply and money demand. The government will base on the market, only that it will can make decision on increased or decreased the quantity of money of the

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