Warm Up Work with a partner. Are you planning to move house in the near future? Conversation Practice with a partner. Well I finally did it! I ve decided to buy a house! That s great! Have you found a place yet? Yeah it s just a ten-minute 1 from the station. I went to the bank last week, and they 2.. to give me a mortgage. So you re finally on the property ladder! Did you have to put down a large deposit? No - just five 3.. It s a fixed-rate mortgage, so I should be ok each month. But I ll be making repayments until I m an old man! Welcome to the club! Do I get an 4 to the house warming party? Missing Words invite walk agreed percent Vocabulary Building Work with a partner. All these words are connected to getting a mortgage. Do you know their meaning? Next to each word write: ü if you know the meaning. X if you don t know the meaning.? if you aren t sure. A MORTGAGE Page 1
Vocabulary Building #2 Match the explanation to the correct word/phrase from exercise three. 1. When the value of a house is less than the remaining mortgage. 2. Someone who has never bought a house before. 3. When the amount of interest you pay the bank can change. 4. When the amount of interest you pay the bank doesn t change. 5. When someone stops / is late paying a mortgage. 6. When the bank takes the property back. 7. Make monthly payments to the bank. 8. Pay all the money you owe the bank. 9. An initial payment made before starting a mortgage. Vocabulary Practice #3 Tom has just bought an apartment. Read his story, and fill in the spaces with a word or phrase from exercise four. You may need to make some minor changes. I bought an apartment last week. It cost 170,000. I paid 17,000 as a 1., so the total mortgage is 153,000. I make repayments every month. For the first five years, the amount won t change, because I have a 2. mortgage. However, the rate will become 3. after that, so the amount each month will depend on interest rates. It s a 25-year mortgage, so I ll be 4. every month until I ve almost retired! I don t have any experience with mortgages, because I m 5... I m a little worried about the housing market. If house prices drop, I ll have 6.., so it will be almost impossible to sell. 7. is another worry: a friend of mine 8. on his loan a few years ago, and lost his house. However, I still think that it s better to purchase a house than rent forever. I m going to be so happy when I finally 9. the loan! Page 2
Discussion Work with a partner. Buying versus Renting Do most people in your country buy or rent property? When do people typically buy? Do you think that it s better to rent or buy? Why? Arranging a Mortgage What kind of financial institutions arrange mortgages? How much can you usually borrow? How is it calculated? Do you have to put down a deposit when you get a mortgage? Is it common for family members (such as parents) to assist financially when someone wants to buy a house? A Typical Mortgage How long is the term of a mortgage? How are repayments calculated? The Current Economic Situation Do you think it s a good time to get a mortgage? How easy is it to get a mortgage? When a house is repossessed, people often blame the lender. Do you think lenders are at fault? Does property generally go up in value in your country? Your Questions Page 3
Target Structure: Theme Lesson: Vocabulary: Property / Mortgages Level: Intermediate + Time: 1 hour, depending on discussion Preparation: None Suggested Teaching Method This worksheet looks at some common language associated with buying a house and arranging a mortgage. The language and rules for mortgages and house purchases vary a great deal from country to country. The vocabulary and phrases in this worksheet can easily be supplemented with additional lexis. In addition to learning common expressions associated with this topic, your students will also have the opportunity to talk about the rules and customs in their home countries though an extensive set of discussion questions. The opening question introduces the topic. Don t spend too long here. There are discussion questions at the end of the worksheet. Direct your students attention to the words in the box. Students should read the conversation silently, and fill in the blanks. After checking in pairs, students should practise the conversation once, and then change roles. Encourage the students to look up and make eye-contact with each other when speaking. Follow the instructions. Students should work with a partner. Elicit some brief feedback, but don t go through the answers yet. Students can work alone, and check in pairs. Go through the answers with the group, and provide additional explanation, where necessary. Elicit the answer to the first blank. Emphasise that although the answers are taken from the previous vocabulary exercises, it is sometimes necessary to make some minor changes. Students can work alone and then check in pairs. Go through the answers with the group. Leave plenty of time for class discussion. To maximize student talking time, it s best to put students in pairs, or small groups. Students should read all the questions first, before beginning the discussion. Encourage eye contact and follow-up questions. While the students are speaking, monitor the conversations, but try not to interrupt. When the discussion comes to a close, ask a few of the questions yourself, and go through any points of English you made a note of while monitoring. Page 4
Answer Key (Other answers may be possible) Well I finally did it! I ve decided to buy a house! That s great! Have you found a place yet? Yeah it s just a ten-minute 1 walk from the station. I went to the bank last week, and they 2 agreed to give me a mortgage. So you re finally on the property ladder! Did you have to put down a large deposit? No - just five 3 percent. It s a fixed-rate mortgage, so I should be ok each month. But I ll be making repayments until I m an old man! Welcome to the club! Do I get an 4 invite to the house warming party? 1) negative equity 2) a first-time buyer 3) variable rate 4) fixed rate 5) default 6) reposession 7) pay back 8) pay off 9) a deposit 1) deposit 2) fixed-rate 3) variable 4) paying back 5) a first-time buyer 6) negative equity 7) Reposession 8) defaulted 9) pay off How are we doing? We d be pleased to hear some feedback on our worksheets. Tell us how it went in your class. You can send us feedback from www.handoutsonline.com Alternatively, you can email the editor at editor@handoutsonline.com. Updated 12/10/2010 Page 5