Canada: Charges, Mortgages, Indemnities

The Court of Appeal for Ontario has resolved a critical uncertainty in construction law regarding how holdback deficiencies should be calculated when owners fail to retain statutory holdbacks. The decision addresses whether contractors who have already been paid can claim additional priority over construction mortgages, and establishes important boundaries to prevent double recovery while balancing the interests of all parties in the construction pyramid.

As data centre investment accelerates, lenders increasingly scrutinize customer contracts as the primary revenue-generating assets that underpin project financing. This analysis examines the specific contractual provisions that determine whether a data centre project can secure third-party financing on acceptable terms, from termination rights and indexation mechanisms to change of control clauses and subordination agreements.

Canada offers sophisticated financing options through well-capitalized domestic and foreign banks, competitive non-bank lenders, and government-supported programs.

CMHC-insured financing remains one of the most attractive tools for multi-residential lending in Canada, offering lower rates, longer amortizations, and reduced capital requirements for lenders.

When a property is subject to multiple mortgages, can a second mortgagee protect their priority position against further advances made on a first mortgage?

Assuming a mortgage in a real estate transaction can preserve favorable financing terms and avoid costs associated with obtaining new financing.

Where litigation concerns an interest in land, a party may seek to register a certificate of pending litigation ("CPL") on title to the property at issue under section 103 of the Courts of Justice Act (the "CJA").

Following are our summaries of the civil decisions of the Court of Appeal for Ontario for the week of March 23, 2026.

Let’s be honest: reviewing your finances isn’t at the top of anyone’s to-do list. If you work in a law firm, as an assistant, administrator, or business professional, you likely spend your days...