What is the reason for a mortgage?

A mortgage exists primarily as a way to finance the purchase of property, such as a house or land, without paying the full price upfront.

Here’s a breakdown of the main reasons for having a mortgage:

1. Affordability – Most people don’t have enough cash to buy a home outright. A mortgage lets you spread the cost over many years (typically 15–30), making homeownership possible.
2. Investment and Ownership – A mortgage allows you to build equity (ownership value) in a property over time as you make payments, instead of paying rent with no return.
3. Credit Building – Making regular, on-time mortgage payments helps improve your credit history and credit score.
4. Financial Leverage – Mortgages let people invest in property (which often appreciates in value) using borrowed money, potentially increasing wealth.
5. Tax Benefits (in some countries) – In certain countries, mortgage interest can be tax-deductible, making homeownership more financially attractive.

In short:
👉 A mortgage is a loan that enables you to buy property now and pay for it gradually, while using the property itself as security for the loan.