You’ll be interested to know the phrase most often googled by Australian’s searching for information about home loans is mortgage calculator.
Average monthly searches for mortgage calculator is 3 350 000 – way ahead of anything else.
But here’s the thing: a mortgage is a not a home loan.
So what is the difference between a mortgage and a home loan – do they mean the same thing?
No. They are not the same.
The two have completely different meanings.
Mortgage
When your home loan is approved, the property is served as collateral to secure the loan.
A mortgage is the document that legally protects a lender’s security over the property they’ve just given you the money to buy.
In the event of an unresolvable repayment default against the home loan, a mortgage allows the bank to reserve the right to sell the property and use the money to recover the remaining debt.
Once your home loan is repaid the mortgage is gone.
Related Reading: 'Our latest video could save you a lot of money. Don’t miss out'
Home loan
A home loan is simply the money advanced by a lender enabling you to purchase a property in its entirety.
Of course, there are many different reasons for needing a home loan, not to mention the many different home loan products available to choose from.
Most people like to prepare their property search by using a home loan calculator (mortgage calculator) to understand how much they can afford to borrow and what the repayments will be.
Need help
We have a range of different home loan and finance calculators to help you.
Home Loan Calculators here.
Finance and budget calculators here.
Just some of the many features and benefits included in a tailored home loan from Loan Avenue – affordable home loan solutions for everyday Australians like you.
Related Reading: 'Make family plans without the worry'
Let us show you. To make an appointment with one of our experienced and accredited finance professionals call 1300 56 26 28 today or leave a message here.
BTW - average monthly searches for home loan calculator is only 165 000.
