First Mortgage
The primary loan secured against a property — first in priority for repayment in the event of default, and the mortgage most borrowers refer to simply as 'the mortgage'.
A first mortgage is the primary loan secured against a property. In the event of default, the first mortgage is repaid from sale proceeds before any second mortgage, HELOC, or other subordinated loan. First mortgages therefore carry lower rates than second mortgages because they carry less risk. Most Canadian borrowers only ever interact with a first mortgage — the term becomes relevant when a second mortgage, HELOC under collateral charge, or private lending is layered on top.
Related Terms
A loan secured against the equity in a property that already has a first mortgage — subordinated in priority and typically carrying higher rates.
A mortgage registration type that allows the lender to secure multiple loans against your property — more flexible for refinancing but harder to switch lenders.
Related Guides
Related FAQs
- What role does mortgage insurance play in first-time homeownership?
- What is the new First-Time Home Buyers' GST/HST Rebate (Bill C-4)?
- Who qualifies as a first-time buyer for the new GST/HST Rebate?
- Can a borrower use the 'First-Time Buyer' 30-year amortization?
- How does Eco Plus impact the 30-year amortization for first-time buyers?