Do we have to speak about a loan or an immovable hypothec?

Most of us will be called to grant one or several deeds of hypothec (known as mortgage) during our lifetime, whether it is in view of purchasing a first residence, a condominium, a second residence, of refinancing for renovation works or for personal projects, or even for a business. In most cases, we will turn towards a financial institution to obtain a loan allowing for the realization of the coveted project.

People often say that they "have a hypothec on the house", that they "pay their hypothec" or they finished to "repay their hypothec". In fact, this way of speaking is not completely accurate, people have rather "a loan on the house", they "pay their loan" or they finished to "repay their loan".

It is the loan granted by the creditor that we repay and it is this loan that can be secured by a hypothec in order to benefit, in most of the cases, from a better interest rate.

The hypothec will vary depending upon the type of property given or taken as security. A house or land will be the subject to an immovable hypothec (also known as immovable mortgage). A motor vehicle or the inventory of a business will be the subject to a movable hypothec. A taxpayer who does not pay his taxes could see his property encumbered by a legal hypothec of the State by the Ministry of Revenue, of Quebec or of Canada.