Difference Between Home Loan & Mortgage Loan | Malaysia

“Home loan” and “mortgage loan” are often confused in property financing. However, they’re different financial products with unique features. In this post, we’ll clarify the difference between a home loan and a mortgage loan in Malaysia.


Home Loan:

A home loan is a type of financing specifically designed to purchase residential properties, such as houses, condominiums, or apartments. Key features of a home loan include:

  1. Purpose: It’s meant to buy a place to live or as an investment property.
  2. Loan Amount: You can usually borrow a percentage of the property’s value.
  3. Interest Rates: You can choose between fixed or variable rates.
  4. Repayment: You can choose how long you want to pay it back, usually between 5 to 35 years.


Mortgage Loan:

On the other hand, a mortgage loan is a broader term that encompasses loans secured by real estate properties, including residential, commercial, or industrial properties. Key features of a mortgage loan include:

  1. Scope: You can use it for various purposes like buying property, refinancing loans, or renovating your place.
  2. Collateral: The property you’re buying or own is used as security for the loan.
  3. Loan-to-Value Ratio: Similar to a home loan, the amount you can borrow depends on a percentage of the property’s value.
  4. Interest Rates and Repayment: These can vary depending on the lender and your loan type.


Key Differences Between Home Loan & Mortgage Loan:

  1. Purpose: Home loans are just for home buying, while mortgage loans can be used for any property-related financing.
  2. Flexibility: Unlike home loans, mortgage loans offer more options regarding loan amount, repayment period, and usage.


Understanding the difference between home and mortgage loans is crucial when buying property or exploring real estate investments. Choosing the right loan is key to achieving financial goals.


Ready to check out your options and find the best loan for your property goals? Contact Chu Yao today for expert guidance and personalized solutions for home loans and mortgage loans in Malaysia. We ensure you secure the ideal financing option.