According to the Ontario Mortgages Act, R.S.O. 1990 c.M.40, a mortgage is defined as “any charge on any property for securing money or money’s worth.” While this technical definition might not be easily understood by most consumers, a mortgage essentially serves as evidence of a debt. It represents both an interest in land created by the mortgage contract and security for that debt. More commonly, a mortgage is described as a loan secured by real property.
- Loan: Refers to the amount of money lent to a borrower.
- Secured: Indicates that a Charge (a legal document outlining the loan's terms) is registered on the property's title to secure the loan. If the borrower defaults, the lender has the right to enforce its interest in the security through various methods.
- Title: The title denotes the ownership of a set of rights that an owner has in a property, typically fee simple ownership. When something is registered “on title,” it means it is officially recorded against the property's ownership through the Land Titles Office.
- Regulation and Licensing: In Ontario, mortgage brokering is regulated by the Financial Services Commission of Ontario (FSCO) and requires a license.
- Real Property: Real property refers to the home and the land it sits on. This legal term distinguishes real estate ownership from other types of property, such as personal property, which includes movable items often referred to as chattels.
