Mortgage in retail banking refers to a specialized type of financial arrangement that empowers individuals to purchase real estate properties, such as homes or apartments. It serves as a significant tool for achieving homeownership by allowing borrowers to secure a loan from a bank or lending institution, using the property itself as collateral. The mortgage process involves several key steps, starting with the negotiation of loan terms, including the loan amount, interest rate, and repayment period. Once the terms are agreed upon, the borrower makes a down payment, which is a percentage of the property's purchase price. The property is then appraised to determine its value, helping establish the loan-to-value ratio (LTV), which influences the borrowing terms. With the mortgage secured, the borrower begins making regular monthly payments that encompass both the principal amount borrowed and the accrued interest. As payments are made over time, a larger share of each payment goes toward reducing the principal balance, gradually building the borrower's equity in the property.