It is possible for a debtor to provide a creditor with property rights in their land as a security, without the debtor losing the right to possess and use the land. An agreement of this kind is referred to as a 'mortgage' of the debtor's land.
A mortgage of Torrens title land takes the form of a 'charge'. This means that the debtor's land is designated as being subject to the debt, and available to discharge it if the debtor fails to pay. The debtor does not need to give up possession and use of the mortgaged land.
A mortgage is created by contract between the mortgagor (the debtor) and mortgagee (the creditor). A mortgage must therefore meet all the requirements of contract formation to be enforceable. Because it creates an interest in land, a mortgage must also be in writing.
For Torrens land, registration is also important. Registration of the mortgage creates a statutory charge over the land, ensuring that the mortgagee gains a legal interest in the property and thus giving the creditor the best protection. If a mortgage is not registered, then it is considered to be only an 'equitable' mortgage, and enforcement by the creditor is less certain than in the case of a registered mortgage.