Which of the following best describes a mortgage?

A mortgage is best described as a secured loan specifically for buying property. This means that the loan is backed by the value of the property itself, giving the lender security in the case that the borrower defaults on the loan. If the borrower fails to make the payments, the lender has the right to take possession of the property through a legal process called foreclosure.

In the context of real estate financing, a mortgage allows individuals to purchase homes or other real estate without needing to pay the full purchase price upfront. Instead, the borrower makes regular payments over a specified period, which includes both principal and interest.

Other options do not accurately define a mortgage. For example, a personal loan for various expenses is unsecured and not specific to property. An investment strategy for real estate development focuses on generating profit through real estate ventures, rather than providing a means to finance a property purchase. A governmental subsidy for housing involves financial aid provided to help individuals afford housing costs, but it does not function as a loan used specifically to purchase property. Therefore, the definition provided in the correct answer captures the essential characteristics and purpose of a mortgage effectively.