I think you mean mortgage.
The word "mortgage" was originally a local dialect, which is more common in Hong Kong, Macao and Taiwan. From the end of 1980s, it gradually appeared in Chinese mainland from south to north. Except for the Hong Kong Special Administrative Region, there is no provision on mortgage in our laws.
Before Hong Kong's return to the motherland, the provisions on mortgage in Hong Kong were broadly defined and narrowly defined. Mortgage in a broad sense refers to any form of pledge (pledge is the mortgage of movable property) and mortgage; Narrow mortgage refers to transferring the property to the lender's name, and then transferring the property back to the borrower's (mortgagor's) name after the loan is paid off.
The mortgage stipulated in the Urban Real Estate Management Law and the Guarantee Law is somewhat different from that in Hong Kong, that is, the definition of mortgage in these two laws is based on the condition of not transferring possession.
Because of the large value of houses, even in countries or regions with high per capita income, it is difficult for buyers to raise enough funds for buying houses at one time. If all property buyers have to wait until the purchase price is complete before buying a house, it will take at least ten years, and it may take decades, and during this long waiting time, they will have to pay the expenses incurred by renting a house.
In recent years, due to the participation of financial institutions, banks have issued loans to property buyers, enabling them to obtain housing in advance.
For real estate development companies, banks provide loans to buyers, so that buyers can buy houses in advance, which is conducive to real estate development companies to speed up capital turnover and obtain more profits.
For banks, if loans are issued directly to real estate development companies, the houses built by the development companies with loans cannot be sold quickly, which will inevitably affect the repayment ability of the development companies. If the loan is issued directly to the buyers, the buyers will use all the loans they get to buy a house. Because the loan amount given to buyers is lower than the house price, buyers themselves have to invest a sum of money to buy a house, and because buyers use the purchased house as collateral when obtaining loans, the reliability of repayment is fully guaranteed.
This kind of mortgage loan is beneficial to buyers, real estate development companies and banks, and promotes the prosperity of the real estate market. So it is more popular in recent years. Some real estate development companies began to call this kind of mortgage loan "mortgage", and some advertisements for selling houses marked "provide ×× mortgage", which is the loan ratio that banks can provide to buyers. For example, "60%" can provide a loan of 60% of the house price. For the sake of loan security, banks can only provide loans of 70% of the house price at most.
Mortgage and mortgage loan are not exactly the same. A more appropriate explanation of mortgage is a mortgage loan provided to property buyers for the purpose of buying a house (mainly a house). Not all loans secured by houses can be called mortgage loans.