Definition
A registered mortgage is security over real estate that the state titles office has entered on the certificate of title. Legislation then backs the lender, which, after following set notice procedures, may take control of and sell the property if the debt goes unpaid. Registered mortgages rank in order of registration and are removed by a discharge once the debt is repaid.
When people talk about a mortgage, they usually mean the loan. Strictly, the mortgage is the security: the registered interest that gives the lender rights over the property.
What registration gives the lender
Registration records the lender’s interest on the title for anyone to see and gives it the protections and powers set out in the state’s land legislation. If the borrower defaults and the default is not fixed, the lender can follow the required steps to take possession and sell.
In business finance
Registered mortgages secure many business loans, from commercial property purchases to secured business loans against a home. They suit longer terms and larger amounts, where the lender wants formal, enforceable security.
At the end of the loan
When the loan is repaid, the lender provides a discharge that is lodged to remove the mortgage. Check the title afterwards. If you are weighing up property-secured finance, make one enquiry to explore your options.
Common questions
What is a mortgage discharge?
A discharge is the document lodged to remove a mortgage from the title once the loan has been repaid. Discharge fees often apply.
Can a property have more than one registered mortgage?
Yes. Mortgages rank in order, with the first mortgagee repaid before later ones if the property is sold.
Sources and further reading
Related terms