HELOCs in Alberta: How a Home Equity Line Is Registered on Title

A home equity line of credit lets you borrow against your home as you need it. To give the lender security, it is usually registered against your property as a mortgage.

Here is how that registration works in Alberta, what it secures, and what to expect when you later sell your home or move your mortgage.

This article covers the law of Alberta.

How a HELOC shows up on title

A mortgage is a charge on land created merely to secure a debt or loan. A second mortgage is registered the same way as a first mortgage and carries its own levy. How a particular credit line is set up on title, alone or alongside another mortgage, depends on your documents, so it is worth confirming with your lender or a lawyer. The borrower signs the mortgage in the prescribed form or to the like effect.

A lender may use standard form terms filed with the Registrar. The registered mortgage then states that it consists of those terms, sets out the principal sum, and is dated and signed by the borrower. Registering does not transfer your land. You remain the registered owner.

Mortgage documents are submitted to a Land Titles office on the prescribed form, by mail or drop-off, and the fees are required at the time of submission. In-person service was paused in Edmonton and Calgary, so confirm options by phone. Accepted documents are registered in the Alberta Land Titles Automation (ALTA) database and given a registration number, and the submitter receives a registration notice.

What it secures and how priority works

A mortgage that provides a revolving line of credit up to a stated principal sum takes priority for later advances as well. This holds even if there are no outstanding advances at some point during the term. Ordinary mortgages also get priority for all advances and obligations they secure.

Priority is decided by the serial number the Registrar assigns, not by the date you signed. A second mortgage ranks behind the first because the first has the earlier serial number. A lender can agree to rank behind another by filing a postponement.

If the lender refuses further advances, or you validly refuse them, the lender must give a discharge as to the further advances when you ask.

Costs of registering

The mortgage levy is $50 plus $5 for each $5,000 or portion of the principal secured. The levy increase applies to submissions received on or after October 20, 2024, and raised the rate from $1.50 to $5 per $5,000 of value. Because the levy is based on principal secured, the stated limit on the line matters.

There is a reduced levy where a new mortgage is given to the same lender as an existing one and supplements it, is collateral to it, or substitutes for or partially replaces it against a condominium unit. The formula then applies only to the additional interest or principal. An amending agreement that increases the principal is levied only on the increase. Ask your lender or lawyer whether this fits your situation.

If the Registrar does not accept a mortgage for registration, the levy is returned to the payer. The levy also does not apply to the Crown in right of Canada, and it has its own exceptions for the Crown in right of Alberta.

Selling or switching lenders with a HELOC

• A discharge is needed when you sell and when you switch lenders.
• Before discharging, you pay off the mortgage and any related HELOC, then ask the lender to confirm in writing that it is paid in full.
• Once fully paid, the lender must provide a discharge within 30 days and cannot charge for it.
• The discharge is entered on the certificate of title and the land stops being liable for the amount discharged.

Because a credit line can stay open, a lender may not treat the account as finished just because the balance is zero. Ask for written confirmation of what is being discharged and whether the line is closed.

If a lender cannot or will not sign a discharge, a judge's certificate that the secured money has been paid can allow the Registrar to discharge the mortgage. Professional fees for a lawyer, notary or commissioner of oaths typically run $400 to $2,500.

Before you open one

• Ask for the stated principal sum registered on title.
• Ask whether it is registered alone or together with your mortgage.
• Ask which lender fees and legal costs apply to registering.
• Ask what happens to the line if you plan to sell or switch lenders.
• Have a lawyer review the documents before you sign.

Frequently asked questions