What is the most common method of creating a mortgage in Nova Scotia?

In Nova Scotia, the most common method of creating a mortgage is through a mortgage deed. A mortgage deed is a legal document that secures a debt repayment obligation using real property as collateral. When a mortgage deed is executed, it establishes a lien on the property, giving the lender a secure interest that can be enforced in case of default on the loan.

This method is widely used because it provides clear evidence of the lender's right to take possession of the property if the borrower fails to meet the mortgage agreement's terms. In addition, a mortgage deed is typically required to be registered in order to enforce the lender's rights against third parties, ensuring that the lender’s interest is publicly acknowledged.

In contrast, while a mortgage note is also a critical component of the mortgage transaction, it primarily serves as an evidence of the borrower's promise to repay the loan. A mortgage bond involves a different context of secured debt and is not typically used for residential mortgages, while a mortgage agreement refers more broadly to the terms and conditions of the mortgage and does not itself create the mortgage. Thus, the use of a mortgage deed is the standard and recognized practice in the creation of mortgages in Nova Scotia.