A mortgage is a contract that promises transport or real or personal property as security for the performance of an obligation, usually the payment of the debt. The term comes from the Old French “dead pledge”, which means that apparently the pledge ends (died), if either the obligation is fulfilled or property caused by foreclosure.

In most countries mortgages are closely linked with secured loans on real estate rather than other property (such as ships), and in some cases only land may be a mortgage. Placement of a mortgage is used as the standard method by which individuals and businesses can buy residential and commercial properties, without the need to pay the full value immediately. See mortgage loan mortgage loans for residential, commercial and mortgage for the granting of loans against commercial property.

In many countries it is normal for home purchase to be financed by a mortgage. In countries where the demand for home ownership is highest, strong domestic markets have developed, notably in Spain, the United Kingdom and the United States.

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