When a lender, be they a large bank or a private individual,
lends money to someone they will, in most cases, require security
for that loan. One well-known type of security is the mortgage. A
mortgage, otherwise known as a charge, is a lien or encumbrance on
the property, giving the lender certain rights over the property if
the borrower fails to comply with his or her obligations.
Mortgages in Ontario are governed by a couple of different laws,
primarily the Mortgages Act, the Land Titles Act
(or the Registry Act in a very small number of cases), and
the Land Registration Reform Act.
The legislation noted above outline certain rights and
obligations for both the lender and the borrower. For example, the
borrower must make mortgage payments as required by the mortgage
loan, and so long as the borrower complies with his or her
obligations the lender must let the borrower use and enjoy the
property.
