A Mortgage denotes different forms of a loan provided by financial institutions to individuals, businesses and organisations to purchase landed properties. The two main types of mortgages are the fixed rate mortgage and the interest only mortgage (also known as Adjustable-Rate Mortgages or Variable Rate Mortgage). Under the fixed rate mortgage, the lender pays a fixed amount at agreed intervals which comprises part of the capital and an interest component. Under the adjustable-rate mortgages or variable rate mortgage, the interest rate is variable which implies the regular payments made by the lender may go up or down over time. In business valuation analytics, mortgages are considered part of the debt portfolio of the business, and as a result, are treated purely as debt instruments. Because the cash flow method applied in business valuation is net of debt, Business Valuators adjust the normal cash flows by deducting mortgages together with other debt instruments to arrive at the debt free cash flow which is discounted to arrive at the enterprise value. To arrive at the fair market value of equity, the Business Valuator deducts the market value of any outstanding debts, including outstanding mortgages, from the enterprise value.