Definition, Meaning & Synonyms

mortgage

noun

/ˈmɔːrɡɪdʒ/

Definition

A loan used to purchase real estate, where the property serves as collateral.

Examples

She took out a mortgage to buy her first house.
After years of paying off his mortgage, he finally owns the home outright.
The bank offered him a low-interest mortgage after evaluating his credit history.

Meaning

A mortgage is a financial agreement that allows individuals to obtain funds to buy a home by securing the loan with the property itself. If the borrower fails to make payments, the lender can take possession of the property.