Charge

A charge is the registration of a mortgage against a property's title, which places the lender's security interest on the public land record and gives that lender a claim on the property until the debt is repaid. In several provinces, including Ontario and British Columbia, "charge" is the formal term used in the land registration system for what borrowers usually call a registered mortgage.

How a Charge Is Created and Ranked

When a purchase or refinance closes, the lender's lawyer or notary registers the mortgage instrument in the provincial land registry — the parcel register in Ontario, the land title register in British Columbia. The registration creates a charge that runs with the land rather than only with the borrower, so it stays on title when the property is sold unless it is removed. Charges are ranked in priority, generally by registration date. A first charge ranks ahead of a second charge, which determines who is paid first if the property is sold through a power of sale or foreclosure. A lawyer ordering a title search will see every charge registered against the parcel.

Charge Compared With Other Encumbrances

A charge is one kind of encumbrance. Other common entries on title include:

• Mortgage charge — created with the owner's consent under a loan agreement and removed once the debt is repaid and a discharge is registered.
• Lien — often statutory, such as a construction lien, and can be registered without the owner agreeing to it.
• Caveat — a notice that another party claims an interest in the land.
• Easement — a right of way or utility access that limits how land is used, not a debt.

A collateral mortgage charge is drafted broadly enough to secure a mortgage plus other credit, such as a home equity line of credit, under a single registration.

Why the Charge Matters to a Borrower

Because the charge is registered against the property, it follows the home into a sale rather than following the borrower. On closing, the buyer's lawyer must be able to register clear title, so any charge that is not being assumed has to be paid out of the sale proceeds. If the balance owing exceeds the sale price, the shortfall can remain a personal debt.

After a mortgage is paid off, the lender signs a discharge that is registered in the same registry. Until that registration is complete, the charge can remain visible on title even though the balance is zero, which may delay a sale or refinance. Borrowers refinancing or adding a second mortgage should note that an existing first charge normally stays in first position; a new lender registering behind it takes a subordinate position and typically prices for that added risk. Registration forms, fees, and timelines vary by province, so confirm current requirements with the provincial land registry or a real estate lawyer.