Finance
What is A mortgage?
A mortgage is a long-term loan you take to buy a home, using the home itself as security. You repay it in monthly EMIs over many years (often 15–30), part interest and part principal. If you stop paying, the lender can take the home.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains a mortgage.
Key things to understand
- 1A long-term loan to buy property.
- 2The home itself is the collateral.
- 3Repaid in monthly EMIs over 15–30 years.
- 4Missed payments can cost you the home.
Frequently asked questions
- How is a mortgage different from a normal loan?
- It's secured against the property you're buying, so rates are lower — but the lender can repossess the home if you default.
- What is the down payment?
- The upfront share you pay yourself (often 10–20%); the mortgage covers the rest.
- Should I pick a longer or shorter tenure?
- Longer tenure means smaller EMIs but much more total interest; shorter means bigger EMIs but far less interest overall.