Mortgage is something that the borrower agrees to pay the Bank over time, typically in a series of regular payments on EMI/EQI basis that are divided into principal and interest.

The price of a home/land is often far greater than the amount of money most households save.

Mortgage lenders (Banks/FIs) will need to approve prospective borrowers through an application and underwriting process. Home loans are only provided to those who have sufficient assets and income relative to their debts to practically carrying the value of a home over time. A person's credit score is also evaluated when making the decision to extend a mortgage. The interest rate on the mortgage also varies, with riskier borrowers receiving higher interest rates.