Before you start
Use this workflow when a property has debt attached to it. A mortgage should reduce net worth as a liability, but it should not replace the property value. Keep the asset value gross, add the mortgage as debt, and link the two when the property already exists in Assets.
Detailed steps
Open the property when it already exists in Assets
Go to Assets > Real Assets and find the property. Use this route when the mortgage belongs to a property already tracked in Capitelist. This is the cleanest approach because the mortgage can be linked to the property and the detail screen can show gross property value, mortgage balance and owned equity together.
Open More details and check linked mortgage status
Open More details for the property. Before entering anything, check whether the header says No linked mortgage yet or Mortgage linked in Debts. If a mortgage is already linked, update the existing one instead of creating a duplicate liability.
Enter balance, lender, principal, dates, payment and conditions
Enter the current outstanding balance as Mortgage balance. This is the liability that reduces net worth. Original principal is the original loan amount and should not replace the current balance. Add lender, rate, start date, maturity, fixed-until date, reset frequency, payment amount, payment frequency, payment day, amortization and conditions when known.
Create the linked mortgage and review owned equity
After saving, the property detail should show the mortgage as linked in Debts. Check Owned equity, Owned property value, Gross property value, Mortgage balance and Payment. Owned equity should be property value minus linked mortgage balance, not a separate number you type manually.
Open Debts > Mortgages and verify the liability row
Go to Debts > Mortgages and confirm the mortgage appears as a liability. Check the name, lender, type, balance, rate, payment and maturity. This matters because Debts is the source that feeds liability totals, debt exposure and debt-service analysis.
Open Net Worth and check the balance sheet effect
Return to Net Worth. Assets should still show the property at its gross value. Liabilities should include the mortgage. Net worth should equal assets minus liabilities. If you also reduced the property value manually, net worth will be understated because the mortgage was counted twice.
Use Debts > Add Debt for a standalone mortgage
Use Add Debt from Debts when the property is not in Assets yet, or when you need to capture the liability before the asset record is ready. This creates a mortgage debt record, but it does not automatically select or create a property.
Complete the standalone Mortgage form only when linking is not possible yet
In the standalone Mortgage form, enter name, lender, balance, currency, rate, maturity, payment, principal, start date, rate type, payment day, benchmark fields, amortization and conditions. Later, when the property exists, review whether the debt should be linked from the real estate detail screen so equity and property debt stay connected.
Field guide
Current amount still owed to the lender.
Use the outstanding balance from the latest lender statement, not the original loan amount.The original amount borrowed when the mortgage started.
Keep it separate from current balance so amortization progress remains understandable.Bank, lender or servicer responsible for the loan.
Use the name you would recognize on statements and payment records.Whether the loan is fixed, variable, tracker, adjustable, hybrid or other.
Tracker and variable loans need benchmark and reset review.The current annual interest rate used for review and forecasting.
Enter percent, not decimal. Use 3.25 for 3.25%, not 0.0325.Reference rate for tracker or variable loans, such as Euribor, SOFR or prime.
Leave blank for a pure fixed loan unless the lender statement names a benchmark.Spread over the benchmark rate.
Only use this when the loan pricing is benchmark plus margin.Loan start date.
Useful for understanding amortization age and fixed-period timing.Scheduled final repayment date.
Check this against the lender record because it affects Forecast and refinancing review.Date when a fixed-rate period ends.
Review before that date so payment shock is not missed.Scheduled payment amount for the selected frequency.
Use the recurring payment, not an occasional extra repayment.How payment reduces principal, such as principal plus interest, interest only or bullet.
Interest-only and bullet loans need extra review because principal may not reduce regularly.Prepayment rules, caps, floors, covenants, review dates or special clauses.
Add anything that changes refinancing, repayment or liquidity decisions.Decision rules
What it adds
- Keeps real estate net worth from being overstated.
- Improves Forecast by adding debt service and maturity timing.
- Makes asset-level leverage visible during review.
What it does not do
- Capitelist does not calculate a lender-grade amortization schedule.
- Rate resets and future payments depend on the fields entered.
- It does not refinance, negotiate or service the loan.
Common mistakes
What to check
- Do not subtract the mortgage from the property value and also add it as debt.
- Use current outstanding balance, not original principal, as the liability value.
- Review tracker and variable rates after benchmark-rate moves.
- Record interest-only dates because they can change future cash pressure.
Subtracting the mortgage from the property value and also adding it in Debts.
Using original principal as the current liability balance.
Creating a standalone mortgage when the property already exists and should be linked.
Creating a duplicate linked mortgage instead of updating the existing one.
Entering 0.0325 instead of 3.25 in the rate field.
Forgetting fixed-until, maturity or interest-only details that change future cash pressure.
Leaving rate type as fixed when the mortgage is actually tracker, variable or hybrid.
Treating the property equity number as cash that is immediately available.
After you save
- Open the property detail and confirm the mortgage is linked in Debts.
- Check owned equity, property value, mortgage balance and payment.
- Open Debts > Mortgages and verify the row.
- Open Net Worth and confirm assets minus liabilities produces the expected net worth.
- Review Forecast if the payment amount, maturity or rate reset materially affects cash flow.
- Update the mortgage whenever the lender balance, rate, payment or fixed period changes.