home loan

IPA/ˌhəʊm ˈləʊn/
IPA/ˌhəʊm ˈləʊn/

home loan — noun

1. The money you receive from a lender to pay for a home, which you then pay back i

1.nounB1
Definition

The money you receive from a lender to pay for a home, which you then pay back in monthly sums over many years.

Example

Amir and his wife took out a home loan to buy their first flat.

collocation: take out a home loan

The bank approved Fatima's home loan after she showed them three months of pay slips.

Common collocations
  • take out a home loan
  • pay off a home loan
  • home loan amount
Synonyms
  • mortgage

    more formal; technically refers to the legal charge on the property, not the money itself

  • housing loan

    same meaning, slightly more formal; common in banking and government contexts

Usage Note

In everyday speech, people often say 'mortgage' instead of 'home loan,' though a mortgage is technically the legal agreement that secures the loan.

Common Mistakes

I need a home loan to buy a car.
I need a personal loan to buy a car.
a home loan is only for buying property, not cars or other items.

2. A formal legal arrangement in which a lender provides money to buy a home, and t

2.nounB2
Definition

A formal legal arrangement in which a lender provides money to buy a home, and the lender can take the property if the borrower fails to repay the debt.

Example

Yuki signed the home loan documents at the solicitor's office on a rainy Tuesday morning.

collocation: sign a home loan

Under the home loan terms, Oluwaseun could not rent out the flat while he worked abroad.

Common collocations
  • sign a home loan
  • home loan terms
  • home loan agreement
Synonyms

Usage Note

This sense focuses on the contract and its terms, not the money itself. When talking about the monthly payments or the amount owed, use sense 1.

Word family

Synonym discussion

Sense: noun/1

A home loan and a mortgage are often used interchangeably, but there is a technical difference: a home loan is the money you borrow, while a mortgage is the legal agreement that gives the lender a claim on your property if you fail to repay. In everyday conversation, mortgage is more common in British and American English ('I need to pay my mortgage'), whereas home loan and housing loan are clearer for learners. A property loan is broader — it can refer to borrowing for any real estate purchase, including investment properties, not just the home you live in. Example: 'We took out a home loan to buy our flat' (everyday, clear) vs 'The mortgage was registered against the property' (formal, legal).

mortgage ↗housing loanproperty loan

Common collocations

Nouns

  • home loan interest rate
  • home loan application
  • home loan approval
  • home loan repayment
  • home loan provider
  • home loan deposit

Phrases

  • apply for a home loan
  • take out a home loan
  • qualify for a home loan
  • repay a home loan

Prepositions

  • home loan for
  • home loan on (a property)

Etymology

Old EnglishOld NorseEnglish

A compound of 'home' (from Old English hām, meaning dwelling or residence) and 'loan' (from Old Norse lán, meaning something lent). The term became widespread in the mid-20th century as home ownership expanded and specialised lending products for house purchases developed, particularly in the United Kingdom, Australia, and the United States.