# What is the difference between a Mortgage and a Hypothec?

> While they serve the same purpose, a Hypothec is the civil law equivalent of a mortgage.

Category: Regulatory
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/regulatory/what-is-the-difference-between-a-mortgage-and-a-hypothec

## Answer
While they serve the same purpose, a Hypothec is the civil law equivalent of a mortgage. It is a 'real right' on the property. In common law provinces, the mortgage is a transfer of title; in Quebec, the title stays with the owner but the lender holds a Hypothecary charge. This influences how foreclosures (surrender and sale under judicial authority) are processed.

## Related guide
- https://ratellow.com/guides/quebec-mortgage-civil-law

## Sources
- FCAC Guide: Quebec Mortgages — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html#toc3
- B-20 Quebec Standards — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.3.3