Which type of loan is typically used for purchasing land or buildings?

An amortized loan is the correct type of loan typically used for purchasing land or buildings because it involves a structured repayment plan over a specific term that includes both principal and interest payments. This type of loan is often utilized in real estate financing, where the borrower pays down the loan gradually through regular payments, making it ideal for long-term investments like land or property acquisition.

Unlike short-term loans, which are generally meant for quick financial needs and have a brief repayment period, amortized loans are designed for longer durations, making them suitable for significant purchases like real estate. Intermediate loans, while they may also be structured over a medium-term period, are not as commonly associated with land and building purchases as amortized loans.

Though a commercial loan can be used for purchasing commercial properties, the term "commercial loan" encompasses a broader category that may involve different repayment structures and terms that do not necessarily align with the fixed repayment nature of an amortized loan. Therefore, amortized loans stand out as the preferred option for purchasing real estate, providing stability and predictability in repayment amounts over the loan's life.