It is a medium or long term loan that is granted for the purchase, expansion, repair or construction of a home, purchase of sites, offices, commercial premises, or for general purposes, that is, the projects that the client receives the loan want to carry out. Therefore, the mortgage of a good does not suppose any translatory title, so that the property of the given property in guarantee remains in the hands of its owner and not of the financial institution. The mortgage guarantees not only the borrowed capital, but what is called mortgage liability. This includes all the concepts guaranteed by the mortgage: capital, ordinary interest, interest on late payment, court costs and other expenses.
Most of the mortgage loans are preceded by a purchase-sale transaction for which the buyer has required to request from a financial institution the money agreed for the acquisition of the property. Thus, we are facing two different operations. One is the purchase and the other mortgage financing.