The main difference between a caveat and a mortgage is the rights and protections of the parties involved. A caveat is a notice that prevents the owner of a property from selling or transferring ownership without the consent of the lender. This protects the lender’s interest in the property. A mortgage gives the lender the right to sell the property if the borrower defaults on their repayments and defaults on the loan. While both caveats and mortgages are security for loans, a mortgage is a more comprehensive legal agreement and gives the lender more control over the property in the event of a default.