A loan for buying a home, also known as a mortgage, is a type of loan that is used to purchase a residential property. It is a secured loan, which means that it is backed by collateral, in this case, the property itself. Mortgage loans typically have a long repayment period, often 15 to 30 years, and can be either fixed-rate or adjustable-rate. Fixed-rate mortgages have an interest rate that remains the same throughout the life of the loan, while adjustable-rate mortgages have an interest rate that can fluctuate over time.
Home loans are an important part of the housing market, as they allow people to purchase homes that they would not otherwise be able to afford. They also provide a source of financing for home builders and developers. The terms and conditions of home loans can vary depending on the lender, the borrower’s creditworthiness, and the value of the property.