A loan (interest bearing loan) that is extended for the purpose of purchasing or maintaining a real estate unit such as a home, office, land, etc. A mortgage loan is secured by the real estate unit as collateral against repayment of the principal amount of the loan as per the terms of the lending agreement.

Mortgage payments consist of interest amount (associated with the outstanding amount of loan) and principal repayment, usually over time (in installments).

Mortgage lending is a facility that is used to finance ownership of residential and commercial property, allowing borrowers to own the property over time while payment (servicing the loan) is made easy with fractional repayment, usually on a monthly basis. The repayment process involves the transfer of an interest (equity) in the mortgaged real estate.

Mortgage loans are typically secured loans.