A mortgage is a type of loan provided by a financial institution to help individuals or businesses purchase real estate. The borrower pledges the property as collateral, and in return, receives funds from the lender to finance the purchase. The mortgage agreement specifies the terms and conditions of the loan, including the interest rate, repayment schedule, and duration. Over time, the borrower repays the loan through regular installments until the mortgage is fully satisfied. If the borrower fails to meet the repayment obligations, the lender may have the right to foreclose on the property.