In general, a mortgage is a guarantee, which means the owner of the mortgage has the right to meet certain financial obligations and the right to mortgage the property to protect those obligations. Most mortgages are issued as part of a real estate loan or credit agreement. The mortgage can be compared to a bond in this case, where the holder of the security (the bank that issued the loan or the person who bought it from the bank) has a right to receive money. The borrower (repayment of the loan).

A progressive premium mortgage is a type of loan where the borrower pays a lower interest rate at the start, but the rate gradually increases over time. Unlike fixed-rate mortgages, where payments remain the same, this structure is designed to make initial payments more affordable for borrowers who may expect their income to rise in the future. The “progressive” part refers to the step-by-step increase in the interest rate, which results in higher monthly payments as the loan matures. While it helps ease the entry into homeownership, it carries the risk of future financial strain if income growth does not match rising payments. Borrowers must carefully assess affordability before choosing this type of mortgage.