Mortgage

A mortgage is a loan secured by real property. The borrower receives funds from a lender to acquire or refinance the property, and the lender registers a charge against the title at the Land Title Office (administered by the Land Title and Survey Authority under the Land Title Act, RSBC 1996, c. 250) that gives the lender the right to enforce repayment by sale of the property if the borrower defaults. The mortgage is registered as a charge on title, creating a legal interest in the property.

Mortgages in British Columbia are registered as charges on title at the Land Title Office, which is administered by the Land Title and Survey Authority under the Land Title Act, RSBC 1996, c. 250. Once registered, the charge appears on the property's title and provides the lender with a secured interest in the property. Registration is the mechanism by which the lender's rights are legally established and protected.

The term is the length of the current mortgage contract (commonly 1 to 5 years), at the end of which the remaining balance must be renewed or refinanced; the amortization period is the total time over which the loan is scheduled to be repaid (commonly 25 or 30 years). At the end of each term, the borrower and lender renegotiate the interest rate and terms for the next period. These definitions are standard in Canadian mortgage finance as described by the Financial Consumer Agency of Canada.

If a borrower defaults, the lender has the right to enforce repayment by sale of the property, as the mortgage is a charge registered against the title under the Land Title Act, RSBC 1996, c. 250. The lender may also pursue other remedies available under the mortgage contract and applicable law. The specific enforcement process, timelines, and borrower rights depend on the terms of the mortgage and relevant statutes—verify the details with a BC lawyer or notary before acting.

Mortgage default insurance (commonly provided by Canada Mortgage and Housing Corporation, a federal Crown corporation) is typically required by lenders when the borrower's down payment is less than 20% (as of 2026-07-27 — verify current) of the purchase price. This insurance protects the lender if the borrower defaults. The requirement and premiums are set by the insurer and federal regulations, not BC provincial law—verify current rules with your lender or the Financial Consumer Agency of Canada.

Most mortgage contracts in BC allow prepayment or early termination, but the borrower is usually required to pay a prepayment penalty (often the greater of three months' interest or the interest rate differential for the remaining term). The specific terms, penalties, and permitted prepayment privileges are set out in the mortgage contract. Review your mortgage agreement and verify the financial impact with your lender or a BC mortgage professional before acting.

The Land Title Office, administered by the Land Title and Survey Authority under the Land Title Act, RSBC 1996, c. 250, is responsible for registering charges (including mortgages) on property titles in British Columbia. Registration creates a public record of the lender's secured interest and establishes priority among competing claims. The Land Title Office does not approve or regulate the terms of the mortgage itself—it simply records the charge.

Property transfer tax (PTT) under the Property Transfer Tax Act, RSBC 1996, c. 378, is payable when property is transferred (e.g., purchased), not when a mortgage is obtained or refinanced. PTT is calculated on the fair market value of the property at rates that vary by purchase price (as of 2026-07-27 — verify current). Certain exemptions (e.g., First-Time Home Buyer Exemption) may apply—verify eligibility and current rates with a BC lawyer, notary, or the BC Ministry of Finance before acting.

Lenders set their own lending criteria, and some Canadian financial institutions may extend mortgages to non-Canadians, though underwriting requirements (down payment, income verification, interest rates) may differ. However, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act, SC 2022, c. 10, prohibits most non-Canadians from purchasing residential property in Canada (currently extended through January 1, 2027 — verify current). Verify both your purchase eligibility and mortgage financing options with a BC lawyer and lender before acting.

The Financial Consumer Agency of Canada provides educational resources on mortgage pre-approval, rate comparison, and the selection process (including banks, credit unions, and mortgage brokers). In BC, if you work with a mortgage broker, ensure they are licensed and regulated by the British Columbia Financial Services Authority under the Real Estate Services Act, SBC 2004, c. 42, and the RESA Rules. Always verify current licensing status and compare offers from multiple sources before committing.