# First Mortgagee > First Mortgagee means the named holder of any first mortgage. **Term:** First Mortgagee **Last updated:** 2026-07-29 ## Definition ## What First Mortgagee Means in a Contract A First Mortgagee is the party identified in a contract as holding the mortgage with top priority over a specific piece of real property. When a borrower grants more than one mortgage against the same asset, the mortgages are ranked, and the First Mortgagee occupies the senior position. This ranking dictates the order in which lenders are repaid if the property is sold, whether voluntarily or through enforcement following default. The term is almost always used in the context of secured lending, where a lender advances funds against real estate as collateral. The contractual language will typically name the First Mortgagee explicitly, describe the property secured, and set out the priority of that mortgage relative to any second or subsequent mortgages that may later be registered against the same title. Understanding this role matters because it affects risk allocation. A First Mortgagee generally negotiates the primary terms of the loan and often retains rights of consent over further encumbrances, meaning subsequent lenders cannot easily disturb its senior position without agreement. ## How First Mortgagee Is Defined or Measured Priority as First Mortgagee is usually established by the order of registration against the property title, rather than merely by the date the mortgage was signed. The law governing the contract typically applies a first-in-time principle, subject to registration requirements, so the party that registers its interest first is recognized as senior. Contracts may also address priority through express subordination or intercreditor arrangements, where a later lender voluntarily takes second position even if it could otherwise claim priority. In such cases, the contract itself, rather than the registration date alone, becomes the controlling record of who holds First Mortgagee status. - Order of registration on the property title. - Express priority or subordination clauses in the loan documents. - Any intercreditor deed governing multiple lenders on the same asset. ## Where First Mortgagee Appears in Agreements The term most commonly appears in a