What is the primary purpose of a mortgage?

The primary purpose of a mortgage is to secure financing for the purchase of real estate. A mortgage is a legal agreement in which a lender provides funds to a borrower to buy property, with the property itself serving as collateral. This means that if the borrower fails to repay the loan, the lender has the right to take possession of the property through a process known as foreclosure. This security for the lender makes it possible for borrowers to obtain the necessary funds to purchase real estate, which they might not be able to afford upfront.

In contrast, providing insurance for the property, granting full ownership, or facilitating property rentals does not reflect the core function of a mortgage. While insurance is important for protecting the property, it is a separate entity from the mortgage itself. Ownership pertains to title and legal rights to the property, and rental agreements are entirely distinct from mortgage financing. Therefore, the answer accurately reflects the fundamental role a mortgage plays in real estate transactions.