{"id":2907,"date":"2026-07-18T14:42:39","date_gmt":"2026-07-18T19:42:39","guid":{"rendered":"https:\/\/hepacom.org\/que-es-una-hipoteca\/"},"modified":"2026-07-18T14:43:56","modified_gmt":"2026-07-18T19:43:56","slug":"que-es-una-hipoteca","status":"publish","type":"post","link":"https:\/\/hepacom.org\/en\/que-es-una-hipoteca\/","title":{"rendered":"What is a mortgage and how does it differ from a mortgage loan?"},"content":{"rendered":"

Last updated: July 2026<\/em><\/p>\n

Many families sign a mortgage without being entirely clear about what they are signing, and that's where the misunderstandings begin.<\/strong> Understand What is a mortgage?<\/em> It's simple when you separate it from the loan: the mortgage isn't the money the bank lends you, it's the collateral you provide on your home to secure that loan. They're two different things that are often mixed up in the same conversation, and confusing them completely changes what's at stake with your home.<\/p>\n

We are Hepacom, the Hechos Para la Comunidad Foundation (NIT 900.841.914-1), and we work for decent housing in the southern Aburr\u00e1 Valley. We support families taking the step of buying their first home, and this is one of the most frequently asked questions. So, let's explain it clearly: what a mortgage is, how it differs from a mortgage loan, how it's established in Colombia, and what happens to it when you finish paying it off.<\/p>\n

What exactly is a mortgage?<\/h2>\n

A mortgage is a real right of guarantee<\/strong> A lien is placed on real estate\u2014usually your house or apartment\u2014to secure payment of a debt, most often a mortgage. Simply put, you tell the bank, "If I don't make the payments, this property will be used to cover the debt." The property is then subject to a registered lien, although you remain the owner and can continue to live there.<\/p>\n

In Colombia, mortgages are regulated by the Civil Code (articles 2432 et seq.) and simply signing a document is not enough: for it to be legally valid, it must be formalized as a public deed before a notary and registered in the property's real estate registry folio at the Office of Public Instruments Registry, which is administered by the Superintendency of Notaries and Registry<\/a>. That registration is what gives it strength against third parties.<\/p>\n

What is the difference between a mortgage and a mortgage loan?<\/h2>\n

This is the most common misconception, and it's worth recording. mortgage loan is the loan<\/strong>The money the bank lends you to buy something, which you repay in installments with interest over several years. The mortgage is the guarantee<\/strong> of that loan: the lien on your home as long as the debt remains. One is the money; the other is the collateral.<\/p>\n

In other words, you can have a mortgage without a bank (for example, to secure another type of obligation) and, in theory, a loan without a mortgage (with other collateral). But in practice, when buying a home, they go hand in hand: the mortgage loan is issued alongside the mortgage on the house you're buying. If you want the details of the loan itself, we explain it in [link\/section\/etc.]. What is a mortgage loan?<\/a> and in How mortgage loans work<\/a> step by step.<\/p>\n

How is a mortgage established in Colombia?<\/h2>\n

When you buy with a loan, the mortgage is established within the same purchase process. The process, broadly speaking, is as follows: the bank approves the loan and inspects the property; the public deed of sale with the mortgage in favor of the bank is signed at the notary's office; and then that deed is registered to be recorded in the property registry. Only when the registration is final does the bank disburse the funds.<\/p>\n

This process involves costs that should be budgeted for from the beginning\u2014notary fees, registration tax, and charity contributions\u2014and that's why we detail them in our guide. home deed expenses<\/a>. Knowing they exist prevents surprises precisely when you have the least margin for error.<\/p>\n

What happens to the mortgage if you stop paying the loan?<\/h2>\n

Here's what the mortgage protects from the bank's perspective. If the borrower stops making payments, the bank can initiate foreclosure proceedings. mortgage foreclosure process<\/strong> before a judge so that the property can be auctioned off and the proceeds used to cover the debt. It's not an automatic or immediate seizure: it's a legal process with stages, notifications, and opportunities to catch up on payments. But it is the reason why a mortgage is taken seriously.<\/p>\n

That's why we insist so much on buying with a cool head and a payment plan that truly fits your budget. Before signing, review your plan to buy your first home<\/a> And understand how much debt you can take on without overwhelming the rest of your household expenses. The loan terms are monitored by the... Financial Superintendency of Colombia<\/a>, which oversees the banks.<\/p>\n

<\/p>\n

\n\n\n\n\n\n\n\n\n\n
Aspect<\/th>\nMortgage (the guarantee)<\/th>\nMortgage loan (the loan)<\/th>\n<\/tr>\n<\/thead>\n
What is<\/strong><\/td>\nReal right of guarantee over the property<\/td>\nThe money the bank lends you to buy<\/td>\n<\/tr>\n
What does it fall on<\/strong><\/td>\nRegarding the dwelling (it is subject to tax)<\/td>\nRegarding a sum of money and its interest<\/td>\n<\/tr>\n
Where it states<\/strong><\/td>\nIn the public deed and the real estate registration folio<\/td>\nIn the promissory note and the loan agreement with the bank<\/td>\n<\/tr>\n
When does it end?<\/strong><\/td>\nWhen the lien is cancelled and lifted from the registry<\/td>\nWhen you pay the last installment of the debt<\/td>\n<\/tr>\n
Who is watching her?<\/strong><\/td>\nSuperintendency of Notaries and Registry<\/td>\nFinancial Superintendency of Colombia<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Prepared by Hepacom based on the Colombian Civil Code and the regulations of the Superintendency of Notaries and Registry and the Financial Superintendency. Last updated: July 2026.<\/em><\/p>\n

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Common mistakes when understanding what a mortgage is<\/h3>\n