What type of mortgage covers both real and personal property?

A package mortgage is designed to finance both real property, such as land and buildings, and personal property, which may include items like appliances, furniture, and equipment. This type of mortgage is particularly useful for buyers looking to purchase a home that comes with its furnishings or for business owners who need to secure financing for both the property and equipment necessary for operation.

In contrast, other types of mortgages do not typically encompass personal property. An open-end mortgage allows a borrower to increase their loan amount as needed but usually pertains only to real property. A conventional mortgage typically covers just real estate without additional personal property components, while an investment mortgage is primarily aimed at financing income-generating properties and does not include personal property. Therefore, package mortgages effectively combine financing for both categories, making them ideal for specific purchasing scenarios.