A homeowner loan is an unsecured personal loan that you can borrow without keeping your property as security. That means if you fail to keep up with the repayments, the lender cannot possess your home. Your property will not be at stake with an unsecured homeowner loan. However, your credit score will be affected if you do not repay the loan on time.
The interest rates that you will be offered on these loans will vary from lender to lender as different lenders have different criteria for lending money. Moreover, the interest rates also depend on a variety of factors such as:
- Your income
- Your expenses
- Your credit history
- Debt utilisation ratio
- Current employment status
Therefore, choose your lender after a careful and thorough loan comparison.