Key differences between registered and equitable mortgage

However, you can choose between an equitable mortgage and a registered mortgage. Confused? Don’t be. Today, in this article, we will focus on what each one means and the key differences between an equitable mortgage and a registered mortgage.

1. Key differences between registered and equitable mortgage

2. What does equitable mortgage mean? The lender and borrower mutually decide on the loan terms and conditions. ‹#›

3. Understanding the working of equitable mortgage The borrower transfers the property title deed to the lender . A charge is created on the mortgaged property. ‹#›

4. What does a registered mortgage mean? Such a mortgage needs approval from the sub registrar's office. ‹#›

5. Understanding the working of registered mortgage A charge on the property is to be created with the sub-registrar. The title is restored to the borrower after the successful loan repayment. ‹#›

6. K ey distinctions between registered and equitable mortgage ‹#›

7. Registration and process An equitable mortgage does not require registration, but a registered mortgage does. The equitable mortgage requires purchasing of stamp paper. For a registered mortgage, you need to contact the sub-registrar office. ‹#›

8. Mortgage cost Stamp duty for an equitable mortgage is between 0.1% and 0.2% of the property value. Stamp duty for a registered mortgage is 5%. ‹#›

9. Risk involved An equitable mortgage is riskier than a registered mortgage. ‹#›

10. Points to consider when choosing between these two mortgages The registered mortgage gives the lender more power than the borrower. The registered mortgage is less risky as both parties are bound by a legal agreement. ‹#›

11. Always remember that a registered mortgage has a slight edge over an equitable mortgage. ‹#›

12. ‹#› Thank You Would Love to hear from you. Hero Fincorp Limited 09, Basant Lok, Vasant Vihar, New Delhi - 110057 Tel : [phone] Email : [email protected] Website : https://www.herofincorp.com/ Know More : Equitable Mortgage vs. Registered Mortgage: Know the Difference