How Much Does It Cost to Register a Mortgage in Newfoundland and Labrador?

If you are taking out a mortgage on a home in Newfoundland and Labrador, your lawyer's closing figures will usually include a line for registering the mortgage. It can look like a mystery number, so it helps to know where it comes from.

This article explains the charge for registering a notice of mortgage, how it is calculated, when it stops growing, and why registration matters. It also covers a few practical points about what happens after the mortgage is registered.

This article covers the law of Newfoundland and Labrador.

There is no land transfer tax, but there is a registration charge

Newfoundland and Labrador has no land transfer tax. Instead, the Services Charges Act imposes a land registration charge payable to the Crown when a conveyance of land, a notice of mortgage or an assignment of a lease is registered in the Registry of Deeds.

This article is about the notice of mortgage charge. The charge for registering the deed itself is a separate calculation, so do not assume the two figures will match.

How the mortgage registration charge is calculated

For a notice of mortgage, the charge is $100 where the debt secured does not exceed $500. Above that, it is $100 plus $0.40 for each additional $100 or part of $100 of the debt secured, paid at registration.

For example, a $240,000 mortgage has 2,395 blocks of $100 above the first $500. At $0.40 each, that is $958, plus the $100 base, for a charge of $1,058.

• Start with the amount of debt the mortgage secures.
• Subtract the first $500.
• Count each block of $100, or part of $100, in what is left.
• Multiply the number of blocks by $0.40 and add the $100 base.

The $5,000 cap

The mortgage registration charge is capped at $5,000, and the Companies and Deeds Online site repeats that the maximum fee to register a mortgage or charge on property is $5,000. By arithmetic, the cap is reached at roughly $1.2 million of secured debt.

The deed charge works differently. The conveyance charge states no maximum, so it keeps rising with the value of the land. For most home buyers the mortgage will be well below the cap, so the cap matters mainly for large or commercial loans.

Who pays, exemptions, and why the fee comes first

One exception applies. Under the Registration of Deeds Act, 2009, no fee is payable on registration of a deed or other instrument by or on behalf of the Crown. Section 5 of the Services Charges Act lists no other exemption.

The fee has to be paid up front. An instrument sent for registration must be accompanied by the proper fee, and the Registrar may not register it unless the proper fee is first paid. The Registry of Deeds provides an online fee calculator for a conveyance or notice of mortgage.

Registration matters for more than the paperwork. Registration is notice to anyone who later claims an interest in the land. An instrument is considered registered when delivered, if the registrar finds it compliant, which fixes the time of registration and priority. An instrument that has not been registered is judged fraudulent and void against a later purchaser or mortgagee for value who registers first.

What to do next

Ask your lawyer for a breakdown of registration charges before closing, and compare it with the government fee calculator for the current figure. Fees can change, so treat any example here as an illustration of the formula, not a quote.

• Confirm the amount of debt your mortgage secures.
• Check the Registry of Deeds online fee calculator for the current charge.
• Ask your lawyer when the mortgage will be registered.
• Know that a title search may show only a notice of mortgage, not the full terms.
• If you need the full terms, ask your lender for a copy; it must be provided within 30 days of your request after the notice is registered.
• After you pay off the mortgage, the lender must register a release within 60 days.

Frequently asked questions