Definition

Noun A sum of money lent to a borrower, specifically for the purpose of purchasing a residential property, where the loan is secured by a legal claim (a lien) on that property. If the borrower fails to repay, the lender can take possession of the home through foreclosure.

Usage

This term refers specifically to the financial product itself. It is commonly used when discussing personal finance, real estate, and banking.

Examples * We are applying for a home loan to buy our first house. * The bank offered a competitive interest rate on the home loan. * Comparing different home loan options is essential before making a decision.

Advanced Usage

• "To secure a home loan": To successfully obtain a home loan from a lender, typically after meeting credit and income requirements.
  • They needed a strong credit history to secure a home loan.
• "Home loan application/approval": The process or document used to request the loan, and the lender's agreement to provide it.
  • The home loan approval allowed them to make an offer on the property.

Variants and Related Words

• Mortgage: This is the most common direct synonym and the formal legal term for a home loan. A mortgage is the instrument that secures the loan with the property.
• Home Mortgage: A more specific variant that emphasizes the residential purpose.
• House Loan: An informal synonym.

Synonyms

• Mortgage
• Property loan (less common)

Related Phrases

• "To take out a home loan": To formally borrow the money and enter into the loan agreement.
  • They decided to take out a home loan with a 20-year term.
• "Home loan repayment": The act of paying back the borrowed money, typically in monthly installments.
  • Their monthly home loan repayment is quite manageable.

Noun

1. a loan secured by equity value in the borrower's home