Monopoly Mortgage Rules: What It Is & How It Works (2023 Guide)

At first glance, the basic monopoly mortgage rules seem to be pretty simple. As you expand your business, buying property in an effort to evict your competitors, you could also include homes and hotels in order to charge higher rentals.

It will eventually be time to study mortgages while playing a game of Monopoly.

In the Monopoly game, a mortgage gives the bank temporary possession rather than full ownership of the property. In exchange, you’ll get back half of what you paid for it initially. What a wonderful world it would be if mortgages in the real world worked the same way.

Monopoly Mortgage Rules

monopoly mortgage rules

You might be wondering why a mortgage exists in Monopoly. The space is temporarily restricted by these mortgages. You can still use the card and the area, but you are not allowed to erect structures there like houses or hotels. Rent collection is also prohibited during this time.

Nothing happens if someone lands on the square you own and are mortgaging. Without any negative effects from landing on the space, they are free to carry on playing the game.

Keep in mind that if a playing square has houses built on it, you cannot mortgage it. It must be in its infancy.

In the Monopoly, the following rules apply to mortgages:

  1. Never get a mortgage unless you absolutely need one.
  2. Investing in properties where other players have a slim chance of landing is a good mortgage strategy.
  3. Keep track of how much you owe on each property if you don’t want to feel intimidated later on in the game. 

monopoly mortgage | What is a mortgage in Monopoly?

In the Monopoly game, mortgaging a property puts it “on hold” for a while. You will still possess the property card, but you won’t be able to expand upon it, and you will no longer be able to collect rent.

If another player shows up on your mortgaged property, they won’t need to put any money at risk because they’re just there to rest.

A property cannot be developed if you want to mortgage it. A property cannot be mortgaged if it contains homes or lodging.

Pros and Cons of Mortgage in Monopoly

Pros of Mortgage in Monopoly

  1. It is possible to buy real estate.
  2. Other players can lend you money.
  3. You have the choice to stay out of jail.
  4. You can make property improvements.

Cons of Mortgage in Monopoly

  1. Purchasing hotels and homes is expensive.
  2. You can collect rent from any player who spawns on one of your properties. You won’t be able to collect rent if your property has a mortgage, though.
  3. In order to be released from a mortgage, the loan and all accumulated interest must first be paid in full. 

monopoly mortgage houses

Returning the houses to the bank and taking the cash value for the number of houses sold in Monopoly is all that is necessary to sell a house. The sale price of the home is equal to 50% of its original cost. During your turn or in between other players, you can sell houses.

When you land on a player’s property and have to pay rent, that is when houses are most frequently sold: during your own turn. It should only be used as a last resort, though, since you can only sell houses outright for a fraction of their value.

Always take out a mortgage on your other properties before selling any of your residences.

Property Mortgages vs. Selling Houses

For illustration, suppose you have a colour set of houses and a few additional separate, unmortgaged properties.

When you mortgage a piece of property, you’ll receive half of the value back while keeping ownership of the original asset. To unmortgage it, you just need to pay back that half plus 10%.

You will receive 50% of the house’s value if you sell it. However, you will have to pay full price once more to buy it back.

You lose all ownership of the property. Selling a house should only be done in extreme circumstances.

what happens when you mortgage in monopoly?

A property is vacant when a mortgage is owed on it. It is undevelopable. If someone steps on it, it cannot be collected as rent. However, a mortgaged property may be sold to another player in the game.

  • Make sure there are no homes or hotels on the grounds.
  • After being turned over, the Title Deed card should be face-down.
  • Obtain the cash equivalent of the mortgage value from the Bank.

In Monopoly, how do you unmortgage a property?

You must repay the mortgage balance plus 10% interest once you have enough cash to pay off the loan. Then you can start charging rent once more and expand by building homes and hotels (as long as no other properties within the colour group are still mortgaged).

  • The mortgage balance plus an additional 10% interest must be paid to the bank.
  • The Title Deed card should be face-up after being turned over.
  • You can resume collecting rent now.

Read More: —how to avoid having a mortgage



What does “mortgage value” in Monopoly mean?

The mortgage value is the sum of money you will receive in exchange for taking out a mortgage on a piece of property. It is written on each Title Deed card. Half of the mortgage value is equal to the initial value of the property.

Are mortgages possible in Monopoly?

Mortgages are not allowed in Monopoly. Financing is only available for real estate (e.g., Boardwalk). You can raise money if you own homes by giving the bank a 50% discount off the original purchase price.

Can you use a mortgage on one property to purchase another?

Yes, you are permitted to mortgage one of your current properties in order to raise the funds required to purchase a different property. Just be cautious not to overextend your finances as this could leave you with very little reserve money.

Can you collect rent on mortgaged property in Monopoly?

No, a property that is mortgaged cannot be rented out. You could resume collecting rent if you paid to unmortgage the property, though.

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