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A home owner loan is that loan in which you make use of your house as security and secure the loan against.
This implies then the lender can collect what they are owed by using the equity in your home if you default on your loan.
Home owner loans often have reduced rates of interest when compared to other loans because it balances out of the risk for the lending company.
By firmly taking away a home owner loan, also called a loan that is secured it will also help grow your credit profile if you continue with your repayments.
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