Preface A mortgage is a form of debt, secured by the security of a specific real property. The borrower is required to repay the debt in predetermined payments. The most common reason to get a mortgage is to purchase a property when it cannot be paid for upfront. The home buyer, with a residential mortgage, pledges their home to the bank. Over the years, the borrower repays the loan with interest. Once the mortgage has been paid in full, the owner keeps the property free from any encumbrances. However, in the event of a foreclosure, the bank has a claim on the home, as a form of insurance in case the buyer fails to repay the mortgage. The bank can then sell the house, and use the capital to repay the remaining mortgage. Each mortgage has an interest rate and different repayment methods, which are agreed with the bank manager at the beginning of the loan. A fixed-rate mortgage allows the borrower to pay the same interest rate over the life of the loan, with monthly repayments never increasing. The other option is a variable mortgage rate, most of the time...