What is Registered Mortgage?

When you plan to buy a house, a Mortgage must have come to your mind. A mortgage is a type of loan used to purchase or refinance a house. The mortgage is a way to buy a house without making the full payment. The mortgage is done between the borrower and the bank or other lenders (NBFCs, Independent lenders, etc. There are various types of mortgages. In this answer, I will explain what is registered mortgage.

Registered mortgage meaning is easy to understand, it is a type of loan in which the borrower willingly gives the full right to the bank over the property in case he/she is unable to make the repayment of the loan or if found as a loan defaulter. A registered mortgage is also known as a Deed of Trust. 

So, according to the registered mortgage meaning the bank has far more rights over the property and if you fail to repay the loan in the given period of time to the bank then the property is transferred to the bank. The bank will have all the rights to do whatever they want with it.

A registered mortgage deed is signed between the borrower, lender, and the registrar at the sub-registrar office. A registered mortgage is registered in the records of the registrar.

As Vidha and Sanket have already explained, registered mortgage is a legal document which allows the banks the full rights of the property in case of default on loan repayment. I figured out about online mortgage registration process when I helped a friend buy a property in Andaman and Nicobar. I am going to tell you how to register a mortgage on a property online here.

You already know what is mortgage registration. Let me tell you where you can register mortgage online in Andaman and Nicobar.

Under the digital India initiative, the government of the UT opened up portal where users have to register and apply for online mortgage registration. The website is as follows:

Similarly, in Noida, where I live, there is a mortgage permission form which can be downloaded and filled to be submitted to lender. 

If you are confused about what is registered mortgage amount then let me set it out straight for you. It is the amount which is actual loan amount against the mortgage.

Let’s say you buy a property worth Rs. 50,00,000 and you apply for mortgage loan of Rs. 30,00,000 then the registered mortgage amount will be entered as Rs. 30,00,000.

I hope I was able to clarify your doubts. 

When you take a loan to buy a house, then the financial institution keeps all the original documents with them as a guarantee/security. Such loans are also referred to as mortgages. There are different types of mortgages. In this answer, I will explain what a registered mortgage means and how it is different from an equitable mortgage.

In simple words, a registered mortgage is a loan where the borrower gives the full right of the house to the bank by choice in case of loan default. In this scenario, the borrower allows the bank to dispose of the house in whichever manner they want if you default the loan. This is a more complex form of loan and the bank has far more rights over the property as opposed to a simple mortgage.

Moreover, the borrower can’t sell the house dubiously under the loan many times since it was recorded in the sub-registrar’s records.

Now you know about the registered mortgage definition.

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I hope now you have a complete understanding of what is registered mortgage meaning.