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. Example “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.