{"id":12638,"date":"2023-08-29T02:53:31","date_gmt":"2023-08-29T02:53:31","guid":{"rendered":"\/blog\/?p=12638"},"modified":"2024-07-03T16:53:01","modified_gmt":"2024-07-03T11:23:01","slug":"difference-between-home-loan-and-mortgage-loan","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/difference-between-home-loan-and-mortgage-loan\/","title":{"rendered":"Difference Between Home Loan And Mortgage Loan"},"content":{"rendered":"\n

With a diverse\nrange of loan products available today in the market, it is easy for borrowers\nto confuse one with another. Most people are usually confused between a home\nloan and a mortgage loan. To understand the difference between home loan and\nmortgage loan, refer to the table given below. <\/p>\n\n\n\n

Mortgage Loan vs Home Loan<\/strong><\/h2>\n\n\n\n
\n Basis<\/strong>\n <\/td>\n Mortgage Loan<\/strong>\n <\/td>\n Home Loan<\/strong>\n <\/td><\/tr>
\n Purpose<\/strong>\n <\/td>\n There is no restriction on what\n the borrower does with the loan amount. It can be used to meet a business\n requirement or a personal requirement. But the applicant\u2019s property serves as\n collateral.\n <\/td>\n A home loan can be availed only\n for updating an existing residential property, purchasing a property where\n the borrower can immediately move in or for constructing a new house in an\n apartment complex or on a piece of land.\n <\/td><\/tr>
\n Loan To Value Ratio<\/strong>\n <\/td>\n A mortgage loan for 60% to 70% of\n the market value of the property can be availed.\n <\/td>\n The home loan amount can be up to\n 90% of the market value of the property.\n <\/td><\/tr>
\n Interest Rate<\/strong>\n <\/td>\n Interest rates on mortgage\n loans are generally 1-3 percentage points higher compared to home loan\n interest rates.\n <\/td> The home loans interest rates<\/a> is low as compared to mortgage loans. <\/td><\/tr>
\n Processing Fee<\/strong>\n <\/td>\n The processing fee for mortgage\n loans is generally fixed at 1.5% of the total loan value.\n <\/td>\n Usually, the processing fee on\n home loans is anywhere between 0.8% to 1.2% of the total loan value.\n <\/td><\/tr>
\n Loan Tenure<\/strong>\n <\/td>\n The maximum tenure for a mortgage\n loan is 15 years.\n <\/td>\n The maximum tenure for a home\n loan is 30 years.\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Now that we know\nwhat is the difference between home loan and mortgage loan, let us look at some\nof the similarities between the two. Both are secured loans and also offer\nother services like top-up loans, balance transfer, etc. in accordance with the\ntotal loan amount that you are eligible for. However, some lenders may provide\nthese additional services and others may not. <\/p>\n\n\n\n

Additional Reads \u2013 <\/strong>All You Need To Know About Home Loan Balance Transfer and Top Up Loan<\/a><\/p>\n\n\n\n

Also, the\ndocumentation required to apply for home loans and mortgage loans is more or\nless, the same. The documents required include:<\/p>\n\n\n\n