home-loan

Vocabulary Word

Definition

A 'home-loan', also known as a mortgage, is a type of loan where the borrower uses the house they're buying as assurance. If you can't pay back the loan, the bank or lending enterprise can take your house.

Examples in Different Contexts

In mortgage financing, a 'home loan' is a sum of money borrowed from a financial institution to purchase a house, secured by the property itself. A loan officer might explain, 'A home loan typically requires a down payment and is repaid over time with interest.'

Practice Scenarios

Economics

Scenario:

Statistics show a steady rise in household debt levels. Increasing home-loan interest rates are deemed a significant factor.

Response:

Yes, it's crucial to keep home loan interest rates in check to mitigate any further increase in the household debt level.

Business

Scenario:

Housing prices are on the rise again. Plus, the interest rates are expected to remain low in the near future.

Response:

Considering the current situation, it's the perfect time for customers to take a home loan.