Short answer. Yes. Article 1303 says subrogation transfers to the person subrogated the credit with all the rights thereto appertaining, either against the debtor or against third persons, be they guarantors or possessors of mortgages. So the mortgage, the collateral and the guarantors that secured the original loan pass to you along with the credit.
What the law says
Subrogation transfers to the persons subrogated the credit with all the rights thereto appertaining, either against the debtor or against third person, be they guarantors or possessors of mortgages, subject to stipulation in a conventional subrogation.
Civil Code, Article 1303 — Effect of Subrogation. Read the full provision →
You get the credit with all its accessories
Article 1303 states the sweeping effect of subrogation: Subrogation transfers to the persons subrogated the credit with all the rights thereto appertaining, either against the debtor or against third person, be they guarantors or possessors of mortgages. When you pay off the debt and are subrogated, you do not merely acquire a bare right to be repaid — you step into the creditor's shoes with the whole bundle of rights that came with the credit. That includes the security. The mortgage over the collateral, and the guarantors who backed the loan, come with the credit, because they were rights appertaining to it in the creditor's hands.
Why the securities pass with the debt
Securities are accessory to the principal debt — they exist to answer for it. Because subrogation carries the credit itself, it necessarily carries what secured that credit; the mortgage and the guaranty do not stay behind with the old creditor who has already been paid. So you may enforce the mortgage against the mortgaged property and pursue the guarantors, just as the original creditor could have. This is what makes subrogation valuable: a person who pays another's debt is not left with a weak, unsecured claim, but inherits the same protected position the creditor enjoyed against the debtor and the third persons who secured the loan.
The limit for conventional subrogation
The article adds a qualifier: the transfer is subject to stipulation in a conventional subrogation. Conventional subrogation is one created by agreement of the parties, as opposed to subrogation that arises by operation of law. Where the subrogation is agreed, the parties may stipulate on its terms — including, potentially, limiting which rights or securities pass. So the default is that everything appertaining to the credit follows it, but a conventional subrogation can carve out exceptions by its own terms. It pays to read the agreement: what you actually receive can be shaped by what the parties expressly provided.
What this does not give you
Subrogation transfers the creditor's rights as they stood; it does not enlarge them. You take the credit subject to the defenses the debtor and the securing parties could have raised against the original creditor — you are no better protected than the creditor you replaced. Nor does it hand you securities that were never validly constituted, or reach beyond what actually secured this debt. And where the subrogation is conventional, any stipulation limiting the transfer controls. Within those bounds, though, the rule answers your question plainly: the mortgage, the collateral and the guarantors ordinarily come with the credit.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Philippine Fisheries Development Authority vs. Mario Daniel Eduardo G. Pascual, G.R. No. 265567, July 7, 2025 — read the decision on LawPhil →
- BDO Unibank, Inc. vs. Francisco Pua, G.R. No. 230923, July 8, 2019 — read the decision on LawPhil →
- Vicente G. Henson, Jr. vs. UCPB General Insurance Co., Inc, G.R. No. 223134, August 14, 2019 — read the decision on LawPhil →
- Metropolitan Bank and Trust Company vs. Rural Bank of Gerona, Inc, G.R. No. 159097, July 5, 2010 — read the decision on LawPhil →