A new mortgage is a loan that allows an individual to purchase property by providing them with the funds needed for the down payment, while allowing them to pay off the remaining balance over time. This type of loan is typically offered by banks or other financial institutions and requires the borrower to provide collateral in the form of the purchased property. The term "new" refers to a freshly originated mortgage that has not yet been paid off, meaning it is a new obligation for the borrower to repay the loan along with interest over time.