Mortgages are assets of value provided by borrowers to banks or other financial institutions in order to obtain a loan. By providing collateral, borrowers may not only have access to higher levels of loans but may also benefit from more favourable borrowing conditions. This paper will describe the characteristics and common types of collateral and explore the advantages and disadvantages of each asset。

What are the characteristics of the collateral? What can be used as collateral

First, the collateral must have three main characteristics:

1. **Stable value**: The collateral should have a relatively stable value and avoid the risk of devaluation. In this way, banks and financial institutions can effectively control risk by disposing of collateral when the borrower is unable to pay on time。

2. ** Fusible**: It is wise to choose assets that are easy to realize and highly liquid as collateral. For example, in houses and vehicles, in the event of default, banks can cash more quickly to reduce losses。

3. **Security**: the collateral must be legally owned and free of dispute. Banks accept only assets that are clearly owned and comply with legal and financial regulations。

So, which assets can be used as collateral? The following are common examples:

** Houses and land**: Property is one of the most common collaterals. Banks evaluate dwellings, commercial properties or land and determine the amount of their loans based on their market value。

** Vehicles**: cars, commercial vehicles, etc. are also commonly used as collateral. The bank also assesses the market value of the vehicle and determines the amount of the loanable。

3. ** marketable securities and portfolio**: Equities, bonds, etc., may even be used as collateral. By providing these financial assets, borrowers can obtain the necessary funds。

4. ** Jewellery and financial treasures**: high-value jewellery, works of art and other financial treasures with investment potential may also be used as collateral for loans。

It is important to note that it is important to understand the relevant policy and evaluation process before choosing the collateral. Borrowers are best advised to consult professional financial advisers or lawyers to avoid potential risks and disputes。