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There are specific characteristics common to many markets, with regards to home finance and mortgages. Most governments regulate the various aspects of mortgage lending via legal requirements or regulation of the participants within the financial markets. They also handle state intervention through direct lending, lending via state-owned banks or sponsorship. The aspects that define the mortgage market could be regional or historical or subject to the legal or financial system.

Mortgage loans are structured as long-term and the periodic payments are calculated according to the ‘time-value’ formulae. The most basic arrangement is a fixed monthly payment over a period of time. Lenders provide funds against property to earn income via interest and hence, the price at which the lenders borrow affects the cost of borrowing. Lenders also sell the mortgage loan to other parties in the form of security. Mortgage lending considers the perceived risk and the likelihood of repayment. The lender, in event of a lapse in repayment, can foreclose to recoup some or all of the original capital.