What is a mortgage?
A mortgage is a loan granted by a credit institution, usually for significant amounts, against the provision of a guarantee.
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The typical case is a mortgage requested and granted to help the borrower with the purchase of a property, but there are also other types of mortgage:
– construction mortgage (to finance the construction of a property)
– renovation mortgage (to finance major refurbishment works on real estate)
– liquidity mortgage (granted for specific needs requiring the availability of large sums of money)
– unsecured mortgage (a loan not tied to specific guarantees, equivalent to a personal loan if granted to a private individual, or to a medium-term loan if granted to a company)
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There are also forms of subsidized financing […] for which the state or local authorities provide favorable conditions to allow disadvantaged households to access home ownership. These opportunities generally refer to the purchase of a first home. Benefits generally concern rates, the disbursable percentage of the property’s appraisal value, the deductibility of interest expenses, and the required income criteria
[from Wikipedia]