This document extensively discusses the issues related to mortgage borrowing for housing in Tanzania, particularly when land is used as collateral for loans. Mortgage lending is by itself a business in some other countries lucrative and well secured. In Tanzania, few people opt for loans to run business even if the effects of gearing are desirous to use loan/borrowing for investment purposes. It is widely held in financial institution circles that Tanzanians have a culture of defaulting. This why banks give priority to collateral whenever they lend money. The problem is compounded by lack of borrowers’ credit risk information that lending institutions could rely in lien of collaterals. Lack of data bank, which can guarantee banks to issue loans.