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Legal Tip 118: Loans and Mortgages are not the same thing!

Discussion in 'Legal Issues' started by Terry_w, 21st Mar, 2016.

  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    18th Jun, 2015
    Loans and Mortgages are not the same thing!

    A loan occurs when someone lends money to someone else. It is a debt.

    A mortgage is a form of security which is usually taken over real property to secure a loan.

    You can have a loan without a mortgage and have a mortgage without a loan.

    However in general use people often confuse the two terms.

    “I just took out a mortgage with ANZ Bank”
    No you didn’t! You probably borrowed or took a loan from ANZ Bank and gave them a mortgage over property you own.