A home loan, also known as a mortgage, is a loan provided by a financial institution (usually a bank or a lending company) to help individuals purchase a home. The borrower repays the loan amount with interest over a specified period.

Eligibility for a home loan depends on factors like your credit score, income, employment history, and the loan-to-value ratio (LTV). LTV is the ratio of the loan amount to the property’s value.

The down payment is the initial payment you make towards the purchase of a home. The amount varies but is typically around 20% of the property’s value. Some lenders may accept a lower down payment, but this may lead to higher interest rates or additional mortgage insurance.

A fixed-rate mortgage has a stable interest rate throughout the loan term, while an adjustable-rate mortgage has an interest rate that can change periodically, typically after an initial fixed period.