# What is the 125% registration trap in collateral charge mortgages?

> Unlike a standard charge registered for the exact mortgage amount, a collateral charge is often registered for 100-125% of the mortgage amount, not property value, to allow for future equity access.

Category: Renewal
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/renewal/what-is-the-125-registration-trap-in-collateral-charge-mortgages

## Answer
### Strategic Proof

- Registration Cap: Up to 125% of the mortgage amount or loan secured, not the initial appraisal/property value
- Collateral charge registration can limit ability to add secondary financing, but does not outright prevent all secondary private or HELOC financing; depends on lender policies
- Switching Status: Requires a 'Discharge and Re-register' vs. a simple 'Transfer'.

## Related guide
- https://ratellow.com/guides/transferring-collateral-charge

## Sources
- Final Capital Adequacy Requirements Guideline (2026) — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-2026-chapter-4-credit-risk-standardized-approach
- BANKOFCANADA — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Introduction
- OSFI-BSIF — https://www.osfi-bsif.gc.ca/en/news/backgrounder-final-capital-adequacy-requirements-guideline-2026