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A standard charge is a mortgage registered against a property for exactly the amount advanced, securing only that specific loan — the more traditional alternative to a collateral charge.
Because a standard charge is registered for the precise loan amount and secures only that mortgage, another lender can, in many cases, simply assign the existing charge at renewal instead of requiring a full discharge and new registration. That's a large part of why a straight switch or transfer tends to be simpler and less costly with a standard charge than with a collateral charge.
Standard charges are typically used for single-purpose mortgages that aren't paired with a HELOC or readvanceable structure. A formal discharge is still required once the mortgage is paid off in full or the property is sold, regardless of which charge type was used.
Secures only the registered amount: a standard charge does not automatically secure other debts owed to the same lender, unlike some collateral charges.
Common for single-purpose mortgages: used where the mortgage isn't bundled with a HELOC or other readvanceable credit.
Easier lender switches: some lenders can assign an existing standard charge to the new lender at renewal rather than requiring a full discharge and re-registration.
Discharge still required at payout: paying the mortgage off in full or selling the property still requires a formal discharge to clear the charge from title.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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