A mortgage is a loan given to a homeowner to help them finance the purchase of their home. Most Canadians do not have the money to purchase a home with only using their savings. The lender (banks and trust companies) will lend you up to 95% of the cost of your home. This means that you only need to have 5% minimum saved for a down payment towards the house. Even if you have 50% of the purchase price saved, the lender will lend you the remaining 50%.