Mortgage
A mortgage is a loan secured against a property. The borrower repays the loan over time through regular payments that include interest and principal, and the lender can enforce the security if the loan is not repaid.
Key mortgage features include the interest rate type, the mortgage term, the amortization period, and prepayment rules. Together, these determine monthly payments, flexibility, and total borrowing cost.
Why this matters:
Most mortgage “mistakes” come from misunderstanding the rules, not from choosing the wrong lender. A clear grasp of how mortgages work helps borrowers avoid costly surprises.
Related Mortgage Terms
Often confused with:
Mortgage Broker — A broker is a professional who helps arrange a mortgage; the mortgage is the loan.
Closely related:
Interest Rate — A key driver of cost.
Mortgage Term — The contract period for your chosen rate and conditions.
Next step:
Mortgage Term — Learn how mortgages are structured into shorter renewal cycles.