What is the primary purpose of a mortgage?

The primary purpose of a mortgage is to act as collateral for a loan. In this context, when a borrower takes out a mortgage, they are using the property they are purchasing as security for the loan. This means that if the borrower fails to repay the loan, the lender has the right to take possession of the property through foreclosure. The mortgage creates a legal lien on the property, ensuring that the lender has a claim to it until the loan is fully repaid. This arrangement provides the lender with assurance that their investment is protected, as they can recover their funds through the property if necessary. The other options relate to different aspects of property ownership or real estate transactions but do not define the fundamental function of a mortgage within a lending context.