The one who gives the
mortgage, the borrower or the debtor.
An individual or company who borrows
money to purchase a piece of real
property. By granting the lender an
interest in the property, which allows it to
lend the funds with an accurate assessment
of risk, the mortgagor provides the lender
with a guarantee for the full repayment
of the loan. Also known as a "Chargor".
For most homebuyers, becoming a
mortgagor is a necessary for owning a
home. Because the real property in question
is offered as security for the loan, the
lender can claim its interest in the
property in the event the loan is not
repaid. This decreased risk allows
homebuyers to borrow funds at much lower
interest rates.
Mortgagor rights are
grouped under three headings:
Rights to
Quiet Possession
Mortgagor has the
right to quiet uninterrupted possession when
not in default. Mortgagor has the right to
use the property and is not responsible to
the
mortgagee for ordinary wear and tear on
the structures, but must exercise
reasonable care and maintain the property.
Right to
Redeem the Property Free from the Mortgage
The mortgagor retains
the right to sell or mortgage his interest,
and to deal with it in the same manner any
interest in property (this right is
extremely important to the mortgagor).
Right to
Discharge the Mortgage
When the loan is paid
off, the mortgagor obtains a discharge
signed by the mortgagee. The discharge fee
is normally paid by the mortgagor. If a
discharge cannot be obtained, the provincial
statute relating to mortgages typically
provides for the mortgagor to make
application through the courts to obtain a
court order based on supporting evidence.
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