General information only; not financial or tax advice. Laws and lender policies change—verify specifics before acting.
LAP offers flexible use; home loan is property purchase-specific.
A home loan funds property purchase at comparatively low rates because the house secures
the loan. A loan against property (LAP) leverages existing property for multi-purpose
needs—tuition, business, consolidation.
Compare total cost, valuation margins, and prepayment clauses before deciding.
- Choose home loan for purchase/construction; LAP for large, multi-purpose funding.
- LTV (loan-to-value) and eligible amount depend on property valuation and income.
- Account for processing, legal, valuation charges; check foreclosure terms carefully.