What is Collateral Mortgage in Canadian mortgages?
A mortgage registered as a collateral charge rather than a standard charge. Can be registered for more than the mortgage amount (up to 125% of value). Cannot be transferred to another lender without refinancing — requires discharge and re-registration.
Collateral Mortgage example
Worked example
TD and CIBC register all mortgages as collateral charges. Cannot "switch" to First National at renewal — must pay discharge fees and legal costs.