What context can I use each word in?
Learn when and how to use these words with these examples!
loan
Example
I need to take out a loan to pay for my tuition. [loan: noun]
Example
The bank agreed to loan me the money I needed to start my business. [loan: verb]
mortgage
Example
We got a mortgage to buy our dream home. [mortgage: noun]
Example
He is currently in the process of mortgaging his property to get a loan. [mortgaging: gerund or present participle]
Good things to know
Which word is more common?
Loan is more commonly used than mortgage in everyday language since it covers a wider range of contexts. Mortgage is a more specific term used mainly in the context of buying a property.
What’s the difference in the tone of formality between loan and mortgage?
Mortgage is generally considered more formal than loan due to its association with purchasing property, which is a significant financial decision. Loan can be used in both formal and informal contexts.
