A home loan or mortgage is the money borrowed by a person from money lending banks or companies. The amount of money taken as a loan needs to be paid back along with interest in the Easy Monthly Instalment scheme or EMI. The time by which the borrower must pay back the money varies depending on the type of loan they took, and this time typically ranges between 10 to 30 years. 

6 Different Home Loans According to Your Unique Situation: 

One can avail of a home loan for both commercial and personal purposes. The different kinds of home loans are listed below. Choose the one which suits you the best. 

• Home Purchase Loan- Choose a property (house) that suits your budget, and you can buy it by taking this loan.
  
• Home Improvement Loan- If you are planning to renovate your house and have an insufficient financial balance, you can take this loan.
  
• Home Extension Loan- The size or amount of already built-up space in your home can be extended using this type of home loan.
  
• Home Repair Loan- The loan amount is to be used for repairing and restoring your house.
  
• Construction Home Loan- This type of loan is used for building your house.
  
• Land Purchase Loan- You can buy land using this loan.

4 Points That You Need to Consider Before You Apply for A Home Loan: 

• Amount of Principal- Make sure that you can pay back the amount you are borrowing from the bank as a home loan.
  
• Duration- Select a suitable time considering your income by which you can pay back the money you have borrowed from the bank.
  
• Amount of Interest- The amount of interest charged by the bank, or the financial company depends on the amount of the principal and the time required for repaying the loan amount. Hence, calculate that before applying for the home loan.
  
• Amount of Easy Monthly Instalment- One can pay the EMI until the time your home mortgage ends, i.e., it can be paid for the time of your borrowing. EMI amount is basically the summation of the principal amount and the interest amount. The interest amount (calculated on the principal amount) reduces gradually with time, as with time, you would be paying back more of your principal amount.

Can You Save Tax by Opting for Home Loans? 

The interest that is charged on home loans is tax-deductible, and expenses can be claimed when you are filing income tax. In this way, you can save a lot of money. 

What Would Be the Consequence If You Can’t Repay the Home Loan? 

The property you are buying is kept as a security deposit by the bank or the financial organization providing you with the home loan. Since the bank or the financial organization has the legal right to that particular property you are buying, in case you are unable to repay the debt, they would possess the property. 

What Are the Features of Australian Home Loans? 

• Home loans often come in the form of a banking package which is also known as a professional package. Discount is applicable in this type of package.
  
• Payments for your loans can be made fortnightly, weekly, or monthly.
  
• Money that must be repaid is automatically deducted from the bank that has provided you with the home loan.
  
• In different interest rate loans, they allow additional repayments.
  
• In many cases, up to 5 years, you can pay interest in advance.
  
• 80% of loans are variable. Fixed-rate of interest is there for up to 5 years.
  
• Long term interest rate (average) is near about 7%. But it deviates and fluctuates between 5% to 9 %.
  
• You can go for offset loans that include offset home loans accounting for 100%.
  
• Additional repayments can be redrawn in loans of variable interests.

I hope, after reading the above information, it will not be difficult for you to understand and avail of home loan schemes. Research about different organizations providing the same and choose the best one for you.