Understanding the Different Types of Mortgages


Mortgage is a term that is important for anyone who wants to take a loan against their property. In this blog, we will discuss the different types of mortgages and their significance.

Basic Terms

Before we delve into the types of mortgages, let’s first understand some basic terms mentioned in this section:

  • First Mode: This is a type of transaction where a person takes a loan by keeping their property as security. The person then transfers the interest on the loan to the lender by using their property as collateral. This allows the lender to recover the loan amount using the interest earned.
  • Second Mode: In this mode, the transfer of interest only happens until a specific property is secured. Only the interest on that specific property should be transferred.
  • Third Mode: This mode requires the transfer to secure the loan amount and performance funding. The judgment gives rise to pecuniary liability, meaning that the interest being transferred must secure a loan or debt connected to any pecuniary liability.

Types of Mortgages

There are six types of mortgages:

  1. Simple Mortgage: In this type of mortgage, the mortgagor agrees that if they are unable to repay the loan amount, the mortgagee can recover it by selling the property and using the proceeds to cover their outstanding amount. This type of mortgage is also known as a registered mortgage.
  2. Equitable Mortgage: An equitable mortgage does not require the mortgagor to execute a mortgage deed like other mortgages. The property’s title documents are submitted to the mortgagee as security for the loan. It is applicable in all states where the state government has made it applicable.
  3. Mortgage by Deposit of Title Deeds: In this type of mortgage, the mortgagor submits the title documents of their property to the mortgagee. The property acts as security for the loan advanced by the mortgagee.
  4. Usufructuary Mortgage: A usufructuary mortgage involves utilizing someone else’s property legally and temporarily for personal gain. The mortgagee can reserve the profits obtained from the property as well as recover the mortgage money.
  5. Mortgage of Ancestral Property: This type of mortgage is not applicable to the categories of property mentioned above. It is a normal mortgage that involves a combination of mortgages, such as the first combination and the simple mode.
  6. Safety Mortgage: This type of mortgage provides the mortgagor with the right to sell the property in case of non-payment. The mortgagee can recover their mortgage money and generate rental income and profits.


These are the seven types of mortgages. It is important to understand each type and its applicability. By having a clear understanding of the different types of mortgages, you can make informed decisions when it comes to your property and loans

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