Legal analysis: if mortgage is needed for buying a house by loan, the mortgage of the house purchased should be used as the guarantee of the loan. Mortgaged houses should be carried out in the Housing Authority, and mortgage registration procedures should be handled. Mortgaged houses can still live normally and will not affect their use.

Legal basis: Article 394 of the Civil Law of People's Republic of China (PRC) guarantees the performance of debts. If the debtor or a third party mortgages the property to the creditor without transferring the possession of the property, the debtor fails to perform the due debt or the creditor has the right to receive priority compensation for the property.

The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.