Mortgagor vs Mortgagee: What's the Difference? (Simple Explainer)

Mortgagor and mortgagee sound almost identical but name the two opposite sides of a mortgage. Here is the simple breakdown; for the other terms you’ll see in mortgage documents, see the mortgage glossary, and for more guides like this one, the mortgage types and features hub.

Quick summary

Term	Who	Simple definition
Mortgagor	The borrower and homeowner	The person who gives the mortgage over their property in exchange for the loan
Mortgagee	The lender	The bank, credit union or other lender that advances the money and receives the mortgage

Memory trick: mortgagor = owner; mortgagee = lender.

The names can seem backwards, since the borrower receives the money. They make sense once you see that the mortgage is the security, not the loan: the homeowner gives (grants) the mortgage, and the lender receives it.

Roles and responsibilities

The mortgage contract creates obligations on both sides. The mortgagor keeps up the payments and protects the property that secures the loan; the mortgagee advances the money, discloses the terms and follows the law if it ever has to enforce the mortgage.

Mortgagor (borrower)

Responsibility	Details
Make the payments	On time, for the life of the mortgage
Pay property taxes	Unpaid taxes can put the mortgage in default
Keep the home insured	Lenders require continuous property insurance
Maintain the property	Letting it deteriorate weakens the lender’s security
Follow the mortgage terms	For example, no further borrowing against the home without consent where the contract restricts it
Live there, if required	When the terms require owner-occupancy

Mortgagee (lender)

Responsibility	Details
Advance the funds	Pay out the loan on closing
Disclose the terms	Rate, payment schedule, prepayment terms and penalties
Send statements	Showing the balance, payments and interest
Discharge the mortgage	Remove its charge from the title once the mortgage is paid off
Follow the law on enforcement	Use only the process provincial law allows after a default

Rights compared

The mortgagor owns the property and can live in it, sell it or rent it out, while the mortgagee holds a registered charge on the title that protects its loan. That balance is what makes a mortgage different from an unsecured loan: the lender has real remedies if you stop paying, but you keep control of the property as long as you meet the contract.

Right	Mortgagor (borrower)	Mortgagee (lender)
Live in the property	Yes	No
Sell the property	Yes, with the mortgage paid from the proceeds	Only through enforcement after a default
Rent it out	Yes, subject to the mortgage terms	No
Refinance or prepay	Yes, subject to the contract and any penalty	Not applicable
Equity of redemption	Yes: the right to pay off the debt and clear the title	Not applicable
Register a charge on title	Not applicable	Yes
Enforce the mortgage	Not applicable	Yes, after a default, under provincial law
Receive payments	Not applicable	Yes

What happens in default

Default is where the two roles matter most. Depending on the province, the mortgagee enforces the mortgage either by selling the property under a power of sale or through a court foreclosure or judicial sale, and the mortgagor usually has a period to pay the arrears and stop the process; the steps, timelines and what happens to any shortfall are covered province by province in the foreclosure and power of sale process.

How the mortgage shows on the title

When you buy a home with a mortgage, you are registered as the owner, and the lender’s mortgage is registered against the same title as a charge. That charge gives the mortgagee legal standing to enforce the mortgage if you default. Once the mortgage is paid off, the lender registers a discharge and the title is clear.

Registration	Details
Ownership	Registered in the mortgagor’s name
Mortgage charge	Registered on the title, showing the mortgagee’s security interest
Priority	The first registered mortgage usually ranks first if the property is sold after a default
Discharge	Filed by the mortgagee once the mortgage is fully repaid
Clear title	No mortgage charge on the title: the mortgagor owns the property outright

How the charge itself is registered, for the amount borrowed or for more, is covered in collateral vs conventional charge mortgages, and the discharge step in the mortgage discharge process.

Common scenarios

When refinancing with a new lender, your old mortgagee is discharged from the title and the new lender takes its place. When two people borrow together, both are mortgagors and both are responsible for the whole debt.

Scenario	Mortgagor	Mortgagee
Buying a home	You, the buyer	Your bank, credit union or other lender
Refinancing	You, the homeowner	The new lender (the old one is discharged)
Second mortgage	You	The second lender, ranking behind the first
Borrowing with someone else	Both borrowers, each liable for the full amount	The lender
Private mortgage	You, the borrower	A private individual or company
Vendor take-back	You, the buyer	The seller, who lends part of the price
Mortgage paid off	You, with clear title	The former lender, which no longer has any interest

A loan from the seller is explained in vendor take-back mortgages.

Term	Definition
Mortgage	The agreement that pledges the property as security for the loan
Charge	The mortgagee’s interest as registered on the title
Discharge	The document that removes the mortgage from the title after repayment
Equity of redemption	The mortgagor’s right to pay off the debt and recover full ownership
Lien	A general term for a registered claim against property
Encumbrance	Any registered interest that limits clear ownership
Collateral	The property pledged as security, here the home
Assignee	A third party the mortgage is transferred to, for example when a lender sells it