Short answer. A “home loan” is the loan a lender gives you to buy a home. A “mortgage” is the security interest the lender takes over the property to make sure you pay the home loan back. In Australia, “mortgage” is so widely used as shorthand for “home loan” that the two are interchangeable in 99% of conversations. Banks call their products both. ASIC and the ATO use both. So do brokers, lenders, and your nan.
The actual legal difference
Strictly speaking, the home loan is the contract between you and the lender for the borrowed money. The mortgage is a separate document, registered against the property's title at your state Land Titles Office, that gives the lender a registered security interest in the property. If you stop repaying the home loan, the mortgage is what lets the lender enforce against the property (the formal process is called “mortgagee in possession”).
One way to remember it: the home loan is the deal, the mortgage is the lever. You sign both at settlement. The lender holds them both. You don't need to interact with the mortgage document again unless you refinance, sell, or default.
Why everyone uses them interchangeably
Banks and brokers gave up on the strict distinction decades ago. When ANZ tells you the “mortgage rate is 5.79%”, they mean the rate on the home loan secured by the mortgage. When CommBank advertises its “mortgage calculator”, it's actually a home loan repayment calculator. The terms have collapsed in everyday language because they always travel together.
For practical purposes:
- If you hear “mortgage repayment”, “mortgage rate”, or “mortgage broker”, read it as “home loan”.
- If you hear “mortgagee” (the lender) or “mortgagor” (you, the borrower), that's strict legal usage from a contract or a court judgment.
- If a real-estate ad says a property is “going to a mortgagee sale”, the previous owner defaulted and the lender is selling.
What the law calls it
Australia's consumer credit framework is the National Consumer Credit Protection Act 2009 (NCCP) and the National Credit Code (Schedule 1 of that Act). Both use “credit contract” as the umbrella term for any regulated lending agreement, including home loans. The Code uses “mortgage” in the strict sense, the security document. ASIC's consumer-facing guidance uses “home loan” almost exclusively, because that's what borrowers search for.
Does the wording change anything you do?
No. Whether you call it a mortgage or a home loan, the same things matter for your decision:
- The interest rate (variable, fixed, or split).
- The comparison rate, which folds in most fees so you can compare like for like.
- The loan term, usually 25 or 30 years.
- Loan features, including offset, redraw, extra repayments, and split-loan splits.
- The Loan-to-Value Ratio (LVR), which decides whether you pay Lenders Mortgage Insurance.
- Lender policies on your specific situation (PAYG vs self-employed, HECS, dependants, credit history).
Quick glossary
- Home loan / mortgage: a lender gives you money to buy a property; you repay it over the term.
- Mortgagee: the lender (usually a bank).
- Mortgagor: you, the borrower.
- LVR: loan amount divided by property value, expressed as a percentage. Above 80% usually triggers LMI.
- LMI: Lenders Mortgage Insurance, a one-off premium that protects the lender (not you) if you default.
- Offset account: a transaction account whose balance is offset against your loan balance for interest calculation, effectively reducing the interest you pay.
- Redraw: access to extra repayments you've made on top of the scheduled minimum.
- Comparison rate: a single rate that folds in most fees, calculated on a $150,000 loan over 25 years for owner-occupier home loans, used for apples-to-apples comparison.
Bottom line
Use whichever term you like. They mean the same thing in everyday Australian usage. When you're comparing actual products, focus on the interest rate, comparison rate, fees, and features. Run the numbers in our home loan repayment calculator, then see what you can borrow with the borrowing power calculator. When you're ready, tell us your situation and we'll connect you with an independent broker who quotes you across 40+ Australian lenders.