Are Home Loans and Mortgages the Same Thing?
Most people approaching a mortgage application will find themselves asking one question – are home loans and mortgages the same thing? The short answer would be yes, both of these borrowing options work in much the same way, so why are they often referred to differently? For instance, hiring the best home loan broker Melbourne has to offer can help an applicant to enjoy a cheap deal on their repayments, but a mortgage brokering company would also be able to offer the same.
The main difference is that with a mortgage broker, the potential to encompass and offer a range of services will be more prominent. With a home loans broker, the difference is that these experts might specialise in finding the cheapest rates on loans. Both offer their own unique sets of advantages and disadvantages; but as the end-game is much the same, it won’t matter too much how a mortgage is obtained.
What do home loans agents specialise in?
In the simplest terms, home loan experts will specialise in the comparison of rates and loans on homes. This means that they will usually pay special attention to finding the best deals on home loans, as opposed to regular brokers that will work alongside banks. The difficulty in distinguishing the differences relates to the services that these providers offer; all of which are similar in nature.
For instance, a mortgage broker will usually compare rates, approach banks and find the cheapest deals. A home loan specialist will do the same, but they will often work on a more personal basis. The confusion often occurs when trying to understand what a home loan entails when compared to a mortgage loan.
For example, if a third party (not a bank) was to offer lending services outside of regular mortgages, then these ‘home loans’ would usually feature their own terms and conditions, as well as a higher interest rate (often called APR). On the other side of the coin, a bank that offers mortgage loans, or loans relating to the purchase of a home, will fall into the same category.
Finding a good mortgage broker, and one that deals with the purchase of homes, can make a huge difference to an application. It’s important to note that for regular loans, then a loan broker might be a better option.