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The origins of today's mortgage industry can be traced back to England, particularly during the late medieval period and the early modern era. The concept of a mortgage began to take shape when real estate transactions required a form of lending that involved collateral, which in this case was the property itself.
In England, the legal term "mortgage" derives from a French term meaning "dead pledge," where the pledge ends either when the obligation is fulfilled or the property is taken through foreclosure. This system established the foundation for modern mortgage practices as it provided a structured framework where property deeds could be used as security for borrowed money.
The evolution of this practice in England solidified concepts such as amortization, fixed interest rates, and legal remedies for default, which have been incorporated into today's mortgage systems not only in Canada but in many other countries as well. The influence of English law and practices regarding property and mortgages significantly shaped the development of the mortgage industry as we know it today, highlighting England's pivotal role in its origins.