Home Loans: Breaking Free from Rent and Building Your Future

2. How Do Home Loans Work?

A home loan, or mortgage, is a loan you take out to buy property, where the property itself serves as collateral. You’ll typically need a down payment, often around 5-20% of the home’s price, and then repay the loan in monthly installments over 15-30 years. Home loans come in different forms, including fixed-rate and adjustable-rate mortgages, allowing you to choose one that suits your financial situation and future goals.