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Key differences between registered and equitable mortgage

However, you can choose between an equitable mortgage and a registered mortgage. Confused? Donu2019t 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.

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Key differences between registered and equitable mortgage

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  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. Key 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 : 18001024145 Email : customer.care@herofincorp.com Website : https://www.herofincorp.com/ Know More : Equitable Mortgage vs. Registered Mortgage: Know the Difference

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