Mortgagor
A mortgagor is the borrower who grants a mortgage over their land to a lender as security for a loan. The mortgagor keeps ownership and possession of the property, subject to the lender's registered charge, and must make the payments and meet the other covenants in the mortgage.
How BC law treats it
Mortgages are governed by the Land Title Act, RSBC 1996, c 250 and the Property Law Act, RSBC 1996, c 377, together with the mortgage terms. On default, the mortgagor keeps a right to redeem during the court-ordered redemption period in foreclosure proceedings.
What it means for your business
A business owner granting a mortgage should understand the personal covenant and any guarantees, which can survive a sale of the property.
Risks and common mistakes
Ignoring a demand letter and foreclosure petition can lead to an order for sale and a judgment for any shortfall.
For the full explanation, see our entry on Mortgage.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
