Collateral Charge
A mortgage registration type that allows the lender to secure multiple loans against your property — more flexible for refinancing but harder to switch lenders.
A collateral charge is a mortgage registration structure where the lender registers a charge against your property for more than the mortgage amount — often 125% of the property value. This allows the lender to lend you additional money later (for a HELOC, second mortgage, or refinance) without re-registering the charge. The downside is that switching lenders at renewal typically requires a full discharge and new registration ($700–$1,500 in legal and registration fees), whereas a standard-charge mortgage can be assigned between lenders more cheaply. Most Big 5 banks register mortgages as collateral charges by default.
Related Terms
A traditional mortgage registration secured only for the exact mortgage amount — easier to transfer between lenders at renewal.
A combined mortgage + HELOC product under one collateral charge, where principal paydown on the mortgage automatically increases the HELOC limit.
The process of setting new mortgage terms when your current term ends — you can stay with your lender or switch without re-qualifying (uninsured, unchanged amount).