A property loan, also known as a mortgage, is a type of loan used to finance the purchase of a
property, such as a home or a commercial building or the land beneath it. Some lenders may call
both as property loan whereas some will offer land loans as a separate product.
Property loans are typically secured loans, which means that they are backed by the property being
purchased as collateral.
There are a few different types of property loans, such as fixed-rate mortgages, floating-rate
mortgages, and interest-only mortgages depending on the region. Fixed-rate mortgages have a fixed
interest rate and a fixed repayment term, while floating rate (also called adjustable rate in some
region) mortgages have an interest rate that can fluctuate over time. Interest-only mortgages allow
borrowers to pay only the interest on their loan for a set period of time, after which they must begin
paying off the principal as well.
The latter is technically a repayment method rather thana loan type (which you can refer to our
glossary on it, for more). But lenders like to brand their loan types differently to try to stand out but
end up creating a nightmare for consumers with so many different terms for the same loan type. So
do refer to our glossary and not just rely on the label they use to make sure both are on the same
page, and you are not distracting by marketing terms!