The Charge That Lived: 
The Practical Value of Charge Transfers

In his recent contribution to The Abstract, an American College of Mortgage Attorneys journal, John van Gent examines the growing trend of borrowers, particularly large US sponsors, seeking the assignment of existing mortgage charges rather than their discharge upon refinancing. Drawing on mortgage law across Canadian jurisdictions, John highlights that, in most Canadian provinces and territories, borrowers already have a statutory right to require a mortgage assignment, making contractual provisions that grant this right largely duplicative.

The article sets out to unpack the key considerations when structuring a loan transaction secured by a charge in Canada, providing lenders, borrowers and advisors with a practical framework for evaluating when a charge transfer is commercially beneficial and when a new mortgage may be the more appropriate approach.

The full article is available through The Abstract, a national publication for members of the American College of Mortgage Attorneys, featuring commentary and analysis on legal issues affecting real estate finance and mortgage law.