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- 800 boul. Décarie, St-Laurent, Québec
- info@northeastmortgages.com
- 1-888-708-5576
- Monday to Friday: 9am to 5pm
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- 2525 blv Daniel-Johnson, Laval, QC, H7T 1S9
- Tel: 1-888-708-5576
- Fax: 514-533-0143
Legal mortgage and 60-day notice
What is a legal mortgage?
A legal mortgage is a protective measure that a creditor can use when a debt is not paid. In Quebec, it is registered directly in the land registry, making it public and accessible to everyone. In other words, it is a charge registered on your property to guarantee the repayment of a debt. This registration does not automatically mean that you will lose your home. However, it does greatly complicate your financial plans. A mortgage creditor may refuse to renew your loan or authorize refinancing, even if your payments are up to date. This can have a domino effect: inability to consolidate your debts, resorting to more expensive private loans, and deterioration of your credit rating.
The four types of legal mortgages recognized in Quebec are:
- Legal mortgage of the State: for tax or municipal debts, such as property taxes or school taxes.
- Legal construction mortgage: when contractors, workers, or suppliers have not been paid for work.
- Legal mortgage of the condominium owners’ association: if you do not pay your condo fees, the association can register a legal mortgage on your unit.
- Legal mortgage resulting from a judgment: when a court orders repayment, for example for alimony or a contractual debt.
Regardless of the type, a legal mortgage is detrimental.
How does the process work?
The registration of a legal mortgage follows a specific process governed by law.
- Prior notice: Before registration, the creditor must send you formal notice of their intention.
- Registration in the land registry: The mortgage is then made public. Anyone who consults the title to your property will see this encumbrance.
- Notification of lenders: Your banks and mortgage lenders are notified. Several institutions regularly consult the registry to protect their interests.
- Immediate impact: Even if you continue to make your regular payments, the presence of this charge may cause the bank to refuse refinancing or not renew your mortgage at the end of the contract.
In some cases, a legal mortgage is followed by a judgment, which is recorded in your credit file and remains there for 6 to 7 years. This reduces your borrowing capacity, even if you otherwise have a good income and a good banking history.
1. Postuler en ligne
Utilisez le formulaire sur cette page ou appelez le 1-888-708-5576 pour parler à l'un de nos représentants.
2. Obtenir l'approbation
Approuvé dans les 24 heures. La valeur nette de votre maison est la clé de votre approbation. Obtenez une approbation maintenant !
3. Obtenez votre financement
Nous vous facilitons la tâche. Les fonds du prêt peuvent être déposés directement sur votre compte bancaire, une fois approuvés.The 60-day notice: a warning sign to be taken seriously
A 60-day notice, also known as a notice of default, is one of the most serious warnings a homeowner can receive. In practical terms, the bank gives you two months to remedy a default situation, failing which it may seize and sell your home. The most common causes are:
- Late mortgage payments
- Lack of insurance on the property
- Improper use of the home (e.g., commercial use of a residential property)
Once they receive this notice, many homeowners panic and believe that the only solution is to sell their home. However, there are other options available. A well-structured private mortgage loan can give you the time you need to get back on track, pay off your urgent debts, and keep your home. The support of a specialized mortgage broker is essential, as they will be able to evaluate the options available to you based on your income, debts, and the equity in your property.
Legal mortgage for tax debts: an invisible danger
Few homeowners are aware that unpaid tax debts can lead to a legal mortgage. The Canada Revenue Agency (CRA) or Revenu Québec have broad collection powers. When they consider that all other options have been exhausted, they can register a tax lien on your home.
This measure does not directly result in the loss of your property, but it does reduce your financial flexibility. Your current or future lenders will see this lien and may refuse to refinance. Worse still, your institution may decide to call in the loan, forcing many homeowners to sell their property quickly.
What are your options for protecting your home?
Act quickly: the longer you wait, the more limited your options become.
- Private lenders often impose strict conditions when they perceive an emergency.
- Consult a mortgage broker: unlike private lenders, a broker regulated by the AMF is there to defend your interests and find the best strategy for your situation.
- Explore private refinancing solutions: these temporary loans are designed to get you out of a bind. Once your debts are paid off and your credit rating is restored, you can return to an institutional lender.
Why work with Mortgage Solutions?
At Mortgage Solutions, we have been supporting Quebec homeowners facing financial challenges for over 10 years. Our team is certified by the Autorité des marchés financiers (AMF) and has a network of reliable lenders.
We understand that behind every legal mortgage or 60-day notice, there is a family and a life plan to protect. That’s why we implement quick, humane solutions tailored to your situation.
Call us now at 1-888-708-5576 or fill out our online form.
A quick consultation can make all the difference.
1. Postuler en ligne
Utilisez le formulaire sur cette page ou appelez le 1-888-708-5576 pour parler à l'un de nos représentants.2. Obtenir l'approbation
Approuvé dans les 24 heures. La valeur nette de votre maison est la clé de votre approbation. Obtenez une approbation maintenant !