Mortgage term
Collateral charge
Definition
A mortgage registration type where the lender registers a claim for more than the loan amount (often 100%–125% of home value). Lets the lender add credit later without re-registering — but makes switching to another lender more expensive.
TD, National Bank, and Scotia's Step register almost all mortgages as collateral charges. RBC, BMO, and most monolines use standard (non-collateral) charges by default. CIBC uses both, depending on product.
Switching a collateral charge to another lender requires new legal work — typically $700–$1,000 in fees, versus $0–$300 for a standard-charge switch (many lenders cover legal costs on standard-charge transfers). Factor this into any renewal comparison.