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Equitable Mortgage vs Registered Mortgage: The Difference Explained

What Is Equitable Mortgage?

What Is Registered Mortgage?

What Is the Difference Between Equitable and Registered Mortgage?


Equitable Mortgage

Registered Mortgage


This type of mortgage does not require any formal registration. There is only an informational agreement.

One must register this type of mortgage in legal terms.


A property buyer must purchase stamp paper to complete this process.

The property buyer must contact the sub-registrar's office and purchase a stamp paper.

Expenses involved

The stamp duty expenses range between 0.1%-0.2%v of the total home value. The expense is therefore lower.

The expense is much higher. Stamp duty is almost 5% of the total loan or home value.

Lender’s rights

The lender has the right to take over your mortgaged home if you fail to pay the loan and become a defaulter. They can auction the property to recoup its loss.

If you cannot pay your loan and become a defaulter, your property directly goes under the ownership of the financial institution. They can either sell it or use it.


Such types of mortgages have relatively higher risks. This is mainly because an informal agreement binds both parties, and no legal terms are associated with it.

There is considerably higher security and lesser risks here. There are legal provisions for both lenders and borrowers, so there is no chance of exploitation.

While there are multiple differences between registered and equitable mortgages, one can observe a few similarities between these two as well. For instance, lenders are likely to take your original property documents in both cases. They will return them to you once you repay your entire loan amount.

Moreover, in both cases, your property will be usurped by the lending institution if you become a defaulter. Therefore, there might be these similarities between these two types of mortgage. However, you need to be careful while choosing the type of mortgage.

Which Type of Mortgage Is Better?

Frequently Asked Questions