Mortgaging converts a property into immediate cash from the Bank. The mortgage value is printed on the Title Deed. You keep ownership of the property, but while it remains mortgaged you cannot collect rent on that property.
What does mortgaging a property do?
Mortgaging converts a property into immediate cash from the Bank. The mortgage value is printed on the Title Deed. You keep ownership of the property, but while it remains mortgaged you cannot collect rent on that property.
A mortgage is therefore a liquidity tool, not a sale. It can keep you alive when a large payment is due, but it temporarily removes the property’s income.
Which properties can be mortgaged?
An unimproved property can be mortgaged to the Bank. If there are buildings anywhere in that color group, those buildings must first be sold back to the Bank according to the building rules before a property in the group can be mortgaged.
This prevents players from keeping profitable improvements on one property while using another property in the same group as collateral.
Can you collect rent on a mortgaged property?
No. A mortgaged property does not collect rent. However, unmortgaged properties in the same color group can still collect the rent they are otherwise entitled to.
The practical table signal is to keep the Title Deed turned face down or otherwise clearly marked while the mortgage is active.
How do you unmortgage a property?
To lift a mortgage, the owner pays the Bank the mortgage amount plus the required interest stated by the rules for that edition. In classic rules this is typically 10 percent. Once the mortgage is cleared, the property can collect rent again.
Because editions can vary in presentation, use the rulebook that came with your set when calculating an exact payment.
Can you trade a mortgaged property?
Yes. A mortgaged property may be sold or traded to another player at any mutually agreed price. The mortgage does not disappear when ownership changes.
Classic rules require the new owner to deal with interest on the mortgage, with the exact timing depending on whether it is lifted immediately. This is one of the reasons a mortgaged property is usually worth less in a trade than the same property free and clear.
Mortgages and complete color groups
Owning a complete group is still strategically important, but building is restricted while properties in that group are mortgaged. Clearing mortgages can therefore be a prerequisite to restarting development.
When deciding what to mortgage, consider not only the cash raised but also which development plans you are disabling.
When should you mortgage?
Mortgaging is usually preferable to bankruptcy when it gives you enough cash to survive and preserves valuable ownership. Low-rent isolated properties are often less painful to mortgage than developed or strategically critical groups.
Avoid mortgaging purely because cash is available. Cash has value, but so does rent and trading leverage. Use mortgages to solve a liquidity problem or fund a clearly superior strategic move.
Common mortgage mistakes
Typical errors include collecting rent from a mortgaged property, mortgaging one property while buildings remain elsewhere in its group, forgetting the interest cost when lifting the mortgage, and treating a mortgage as though the Bank now owns the property.
The owner still owns the property. The Bank is providing a loan against it.
This page explains the standard rules commonly published for classic Monopoly editions. Individual editions can differ, so the rulebook supplied with your set is the final reference for edition-specific details.