However, you can choose between an equitable mortgage and a registered mortgage. Confused? Don’t be. Today, in this article, we will focus on what each one means and the key differences between an equitable mortgage and a registered mortgage.

1. Key differences
between registered
and equitable
mortgage

2. What does equitable mortgage
mean?
× The lender and borrower mutually decide
on the loan terms and conditions.
2

3. Understanding the working of
equitable mortgage
× The borrower transfers the property title
deed to the lender.
× A charge is created on the mortgaged
property.
3

4. What does a registered
mortgage mean?
× Such a mortgage needs approval from the
sub registrar's office.
4

5. Understanding the working of
registered mortgage
× A charge on the property is to be created
with the sub-registrar.
× The title is restored to the borrower after
the successful loan repayment.
5

6. Key
distinctions
between
registered and
equitable
mortgage
6

7. Registration and process
× An equitable mortgage does not require
registration, but a registered mortgage
does.
× The equitable mortgage requires
purchasing of stamp paper.
× For a registered mortgage, you need to
contact the sub-registrar office.
7

8. Mortgage cost
× Stamp duty for an equitable mortgage is
between 0.1% and 0.2% of the property
value.
× Stamp duty for a registered mortgage is
5%.
8

9. Risk involved
× An equitable mortgage is riskier than a
registered mortgage.
9

10. Points to consider when
choosing between these two
mortgages
× The registered mortgage gives the lender
more power than the borrower.
× The registered mortgage is less risky as
both parties are bound by a legal
agreement.
10

11. Always remember
that a registered
mortgage has a
slight edge over an
equitable
mortgage.
11

12. 12
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Hero Fincorp Limited
09, Basant Lok, Vasant Vihar, New Delhi - 110057
Tel : 18001024145
Email : customer.care@herofincorp.com
Website : https://www.herofincorp.com/
Know More : Equitable Mortgage vs. Registered Mortgage:
Know the Difference