When a lender registers your mortgage on the property's title, it does so with a "charge." The two common types are a standard charge and a collateral charge. Most borrowers never look at which one they have, but it can affect what it costs to switch lenders at renewal and how easily you can borrow more against your home later. This guide is for homeowners who are renewing, thinking about switching lenders or planning to use a home equity line of credit (HELOC).
What a standard charge is
A standard charge is generally registered for the actual amount and terms of your mortgage. It secures that one loan. If you later want to borrow more against the home, you usually need to refinance, add a second charge, or both, which can involve new legal work.
What a collateral charge is
A collateral charge is generally registered for an amount that can be higher than the mortgage you take out, and it can secure more than one loan with the same lender. That might include the mortgage, a HELOC and other credit. The registered amount and what it secures depend on the lender's documents, so ask to see them.
The trade-off appears when you leave. The Financial Consumer Agency of Canada (FCAC) explains that to remove a collateral charge you must repay in full or transfer to the new lender every loan it secures, which can include car loans or lines of credit, and that there may be fees to remove the old charge and register a new one.
Why it matters at renewal
Renewal is when many borrowers compare lenders. FCAC suggests asking your lender, lawyer or notary whether your mortgage has a standard or collateral charge, and allowing a few months before your renewal date to sort it out. Switching costs can include discharge, registration, transfer or assignment fees, an appraisal and administration fees, and FCAC notes you can ask the new lender whether it will cover some of them.
Qualification is a separate question. OSFI says it does not expect federally regulated lenders to apply the minimum qualifying rate to uninsured straight switches at renewal, meaning a move to another federally regulated lender with no increase in the loan amount or amortization. That exemption does not remove the legal and discharge costs tied to the charge itself.
HELOCs and readvanceable mortgages
A HELOC combined with a mortgage must be taken out with the same lender that issued the mortgage, and FCAC notes that available credit can increase as you pay down principal; this is sometimes called a readvanceable mortgage. You may borrow up to 65% of your home's value on a HELOC. OSFI's Guideline B-20 limits the non-amortizing HELOC portion at federally regulated lenders to 65% loan-to-value. Before you cancel or transfer a HELOC, FCAC says you must pay it off and close it.
Our interpretation: a collateral charge can be convenient if you expect to borrow against your home with the same lender, and less convenient if you like to shop around at every renewal. Neither type is better for everyone.
Questions to ask before you sign or switch
- Is the mortgage registered as a standard or a collateral charge, and for what amount?
- Which of your loans does the charge secure today?
- What would it cost to discharge the charge, and would a new lender cover any of it?
- If you plan to use a HELOC, does the product require a collateral charge?
- Would switching change the loan amount or amortization, and how would that affect qualification?
Next steps
Start with your current mortgage documents or ask your lender, then compare offers a few months before renewal. The mortgage renewal calculator and the HELOC calculator can help you size the numbers. A mortgage renewal broker can explain how different lenders register their mortgages, and you can also browse home equity lenders.
Sources
- Financial Consumer Agency of Canada, Renewing your mortgage, 2025-10-15. Accessed 2026-11-10.
- Financial Consumer Agency of Canada, Home equity line of credit, 2025-10-15. Accessed 2026-11-10.
- Office of the Superintendent of Financial Institutions, Minimum qualifying rate for uninsured mortgages, 2026-01-29. Accessed 2026-11-10.
- Office of the Superintendent of Financial Institutions, Residential Mortgage Underwriting Practices and Procedures (Guideline B-20), 2017-10-31. Accessed 2026-11-10.
General information only, not legal or financial advice. How a charge is registered, and the fees to change it, vary by lender and province; confirm the details with your lender, lawyer or notary. Mortgage Directory does not verify or endorse listed professionals.
