What is a mortgage loan? It is a loan specifically used to purchase real estate, typically a home. In a mortgage loan, the borrower receives funds from a lender to buy a property, and the property itself serves as collateral for the loan. The borrower then repays the loan through the mortgage banks in Nigeria, typically in monthly installments, over an agreed-upon period. If the borrower fails to make the required payments, the lender has the right to take possession of the property through a legal process known as foreclosure.