A Home Loan is an offer which offers you money for the purchase of the property. The payment is made directly to the dealer or builder of the property. On the other hand, mortgage loan is the scheme where you get money against a security i.e. property. Here, the payment is made to borrower, and he/she is free to use it for any purpose. There are no restrictions to use the loan amount in this case. In both the loans, property is used as collateral.

Is mortgage interest tax deductible?

If the loan amount acquired through this Loan is used for business purposes, then the interest paid can be claimed as an expense on the balance sheet of the business. As it is a multipurpose loan, there are people who use this loan for paying medical expenses or marriage in such cases, the interest is not tax deductible.

What is the difference between a pre-qualified and pre-approved loan?

A pre-qualified loan is where the banker has done his due diligence on the land and builder. Then this property is referred as pre-qualified for a loan up to a particular value of the property. A pre-approved loan is where the banker has done his due diligence on the applicant of the money. The applicant is then said to be pre-approved for a loan up to a particular amount.

What are the key points that a customer should take into consideration while deciding about the loan tenor?

An important factor that you need to consider is the tenor of income that one is getting to support the payment of the loan. Suppose, if you are retiring in 15 years, the tenure of loan should be around 14 years or fewer. Once this element is established, higher tenors can be looked at to get a larger loan amounts.