A mortgage discharge is a signed document from the lender indicating that the mortgage contract has been fulfilled. Discharging the mortgage ends the lender’s legal claim to your property.
Many people assume that once you have paid off your mortgage in full the lender immediately gives up any rights to the property. However, this is not the case.
A specific process must be followed to receive a signed document from the lender indicating that the mortgage has been discharged and your contract has been fulfilled.
The mortgage discharge document marks the repayment and completion of your mortgage. Once it has been finalized, the lender no longer has any legal claim to your property.
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There will be three main parties involved in the mortgage discharge process:
The mortgage discharge process does differ depending on your location. Some land title offices will require you to work with a lawyer, a notary or a commissioner of oaths to fill out the necessary paperwork for a mortgage release. Other title offices will allow you to do the work yourself, although you may still have to get the documents notarized by a professional.
There are three main times at which a mortgage may need to be discharged:
Because mortgage discharge is a legal process, you may have to pay the following fees:
Depending on the rules and regulations of the province or territory in which you live, you may be able to fill out the mortgage discharge document yourself (and have it notarized) or, you may need a professional (lawyer, notary or commissioner of oaths) to fill it out for you.
The document can be found online, at your local Registry of Deeds office or you can get one from a real estate attorney. Once you have obtained the form you can schedule a call or a meeting with your mortgage lender and a lawyer/notary/commissioner of oaths.
In Ontario, for example, the lender fills out the form and it is witnessed by a real estate attorney who will sign and emboss it with a notary seal. As the borrower, you will need to bring a letter from the lender stating that you have paid off the mortgage in full. Check and see what the proper protocol is for filling out this form in your home province or territory.
After the form is filled out you will pay any applicable fees as discussed above. You will then be given a letter stating that your mortgage has been officially discharged.
The final step is to make copies of these and take one to the Registry of Deeds office. This may incur additional fees but it’s important to ensure that the discharge is officially documented.
Hannah Logan is a freelance writer and blogger who specializes in personal finance and travel. You can follow her personal travel blog EatSleepBreatheTravel.com or find her on Instagram @hannahlogan21.
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