You want to buy a new boat, but need to obtain a mortgage in order to afford the cost. In order to take out a mortgage, you will most likely be required by the lender to register your vessel with Transport Canada. Only vessels which have been registered in this form are allowed to have mortgages, as this is a way of monitoring the vessel and making sure that it is not sold without permission. To register the vessel mortgage, you must submit Form 7-mortgage registration as well as a fee of $150. This will then confirm that you have a mortgage on that boat.
A New Mortgage
If this is the first time that you have taken out a mortgage on this vessel, then you will need to submit the form and the fee together. This form must be signed and fully completed by all of the registered owner of the boat. Incomplete forms may be returned to the owner and will result in a delay of the mortgage, meaning that you may not be able to purchase the boat. It is a good idea to check information before you apply for the mortgage registration, to make sure that everything is correct.
Transferring the Mortgage
When you are buying a second-hand vessel, you may be taking over a mortgage from the seller. In this case, you will need to fill in the application form as though you were applying for a mortgage of your own, and pay the required fee. You will also need to submit the deed of the mortgage, completing the transfer of mortgage section. If the deed is not available, then the original owner of the mortgage must fill in the transfer and sign before any Commissioner of Oaths. This will ensure that the mortgage is successfully transferred to you.
Completing the Forms Correctly
At Canadian Vessel Registry, we know the importance of completing your application forms correctly the first time around. For each time you apply for registration, you will have to pay the fee, in this case $150 for the submission of a Form 7-mortgage registration. Most new boat owners will need some assistance in completing the paperwork required, and this can take some time. Make sure that you are able to get the forms completed at the first attempt by filling in our online contact form or by calling our team on (800) 419-9569 today.