What are Standard Charge Terms?

Mortgage lending and the registration of mortgage are governed by certain pieces of legislation, both provincially and federally. However, these legislations do not have sufficient language to cover all that is typically required to govern the relationship between a borrower and a lender.

Because of this, lenders can create, and indeed, most lenders have created, their own standard charge terms, which are included in each mortgage registered by referencing their registered number. These terms are generally applicable, hence standard, to all of the lender’s mortgages.

For instance, lender A has created their own standard charge terms and registered this with the provincial government. In each instance where lender A has a mortgage registered against someone’s property, the registered mortgage will reference the standard charge terms.

The standard charge terms will typically discuss general language relating to:

  • Mortgage payments
  • Borrower’s obligations to insure the property
  • Borrower’s obligation to maintain the property
  • Lender’s potential remedies if the borrower defaults
  • Lenders’ right to attend at the property and to inspect it

All borrowers must be given a copy of the standard charge terms by their lender or lawyer.