housing-loan

Vocabulary Word

Definition

A 'housing loan', also known as a mortgage, is money lent by a financial institution to help a borrower purchase a house. The loan is paid back, usually monthly, with an added amount called interest.

Examples in Different Contexts

In personal finance, a 'housing loan' enables individuals to buy a home without the need for full payment upfront. A financial advisor might advise, 'Before applying for a housing loan, assess your monthly budget to ensure you can manage the mortgage payments alongside your other financial commitments.'

Practice Scenarios

Banking

Scenario:

Finding the right mortgage can be a complex task. While we do have a variety of options, it's important to review your personal financial situation first.

Response:

You're right. Perhaps we should review my income and expenses first, then check what type of housing loan I am eligible for.

Finance

Scenario:

There has been an upward trend in the real estate sector in the last quarter. This can have a significant impact on the overall economy.

Response:

The surge in housing loans and its impact on the economy is indeed interesting. I’d love to delve deeper.