What is a mortgage?

A mortgage is defined in the Alberta Land Titles Act as "a charge on land created merely for securing a debt or loan." In other words, a bank or mortgage company lends you the money to buy your home and you in turn sign documents which are registered on the title to your home promising to repay them. You, the owner of the land, are called the "mortgagor" and the lender is called the "mortgagee". If you default (i.e., do not pay) on your mortgage, the home will be repossessed to repay the loan.

Note that there are other types of mortgages, common law mortgages and equitable mortgages, but most purchasers in Alberta will be obtaining the type of statutory mortgage described by the Land Titles Act.

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WARNING: The contents of these FAQs are intended as general legal information only.
If you have a personal problem, please consult a lawyer.