What is the primary purpose of a mortgage?

The primary purpose of a mortgage is to finance the purchase of a home. Mortgages are specifically designed as a loan product that allows individuals to borrow money from a lender to buy real estate. When a borrower takes out a mortgage, they agree to repay the lender over time, typically with interest. This structure makes homeownership accessible, as it enables individuals to acquire property without needing the full purchase price upfront.

While options like providing a line of credit, consolidating debt, or financing renovation projects are important financial functions or products, they do not align with the core purpose of a mortgage. A mortgage inherently serves as a secured loan tied to the value of a property, making it distinct from other financial products that are broader in their applications.