What is defined as a Residential Mortgage Loan?

A Residential Mortgage Loan is specifically defined as a loan that is secured by real estate and is intended for personal, family, or household purposes. This definition encompasses loans used to purchase or refinance a primary residence, a second home, or even certain types of vacation properties, as long as they are used for personal living purposes.

The focus on personal, family, or household use is critical because it distinguishes these types of loans from those intended for business or investment purposes. In contrast, loans secured by commercial properties or those exclusively for investment properties do not fit this definition since they relate to non-residential uses. An unsecured loan for residential needs also does not qualify, as all residential mortgage loans must involve real estate as collateral.

Thus, the correct understanding of a Residential Mortgage Loan is tied to its purpose and its securement by real property, highlighting its distinction in the broader context of mortgage lending.