In real estate, one must need a mortgage loan to enable to purchase a property. This is usually availed when a residential property has a very high initial value. Mortgage loans are lower priced than other loans as value of the property reduces the risk for the loan provider.

This property is kept under mortgage as a security for paying off your loan. In other words, your property is put up as a collateral to your loan. It gives the creditor conditional ownership over the asset which can be discharged only upon repayment of the loan amount.

This type of investment has become the accepted practice in the developed countries such as the United States and United Kingdom.