Mortgage Priority determines which mortgage is paid first when multiple mortgages exist.

• A. The 1st priority mortgage gets paid first
• B. Mortgages with higher interest rates get paid first
• C. Open mortgages are paid first
• D. The smallest loan is paid first

Answer: (A)

Mortgage priority is about the order in which liens on a property are satisfied from sale proceeds. When there are multiple mortgages, the lender whose loan was registered first holds the highest priority and is paid first from what’s available. The order is set by the date of registration, not by how high the interest rate is, how large or small the loan is, or whether a mortgage is “open.” So the first mortgage in time gets paid before the others, followed by the next in line, and so on—unless there are other liens (like government taxes) that take precedence. This ensures a clear, predictable sequence for repaying lenders from the property’s sale or foreclosure proceeds.