Understanding Mortgage Discharge: Process And Requirements

A mortgage discharge is a signed document from the lender indicating that the mortgage contract has been fulfilled. It is a simple document in which the bank states that the loan has been paid in full and that the bank has released its lien on the property. The mortgage discharge document marks the repayment and completion of the mortgage. Once it has been finalised, the lender no longer has any legal claim to the property. Depending on the rules and regulations of the province or territory in which the property is located, the mortgage discharge document may be filled out by the borrower or by a professional, such as a lawyer or notary. The document is then submitted to the local Registry of Deeds office, where a filing fee may be required.

The mortgage discharge document

A mortgage discharge document is a signed document from the lender indicating that the mortgage contract has been fulfilled. It is a simple document that marks the repayment and completion of your mortgage. Once it has been finalised, the lender no longer has any legal claim to your property.

The mortgage discharge process differs by location. Some land title offices 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 allow you to do the work yourself, though you may still have to get the documents notarised by a professional. In Ontario, for example, the lender fills out the form under the witness of a real estate attorney who will sign and emboss the form 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.

To start the discharge process, you will need the following: the legal names of everyone on your home loan, including your guarantor; your home loan account number, including any offset account numbers or redraw facilities; your property details, such as the address and certificate of title; your debit or credit card details to pay any discharge fees. It may also be useful to have the contact details of your mortgage broker, conveyancer, private banker, authorised representatives, and any other financial institution that helped you buy your home.

Once your paperwork is assembled, tell your lender that you plan to discharge your mortgage. Ask questions about any discharge fees you must pay and how long the discharge process will take (typically 10-15 business days). If you are leaving a fixed-rate home loan before your loan term is up, you may have to pay break costs. Discharge fees vary between lenders—some may not have any at all, while others may charge between $100-$400. Variable-rate home loans usually have lower discharge fees.

After the form is filled out, you will pay any applicable fees. 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, where you may be required to pay a filing fee. This final step ensures that the discharge is officially documented.

The discharge process

Discharging a mortgage involves a few steps and is a legal process, so you may need to pay certain fees. Here is a step-by-step breakdown of the discharge process:

Step 1: Prepare the necessary information and documents

Firstly, gather all the relevant information and documents. This includes the legal names of everyone on your home loan, including your guarantor, your home loan account number, your property details (address and certificate of title), and your debit or credit card details to pay any discharge fees. It is also a good idea to have the contact details of your mortgage broker, conveyancer, and other financial institutions that were involved in the purchase of your home.

Step 2: Notify your lender

Once you have assembled the necessary paperwork, inform your lender that you plan to discharge your mortgage. Ask them about any discharge fees you need to pay and how long the process will take. If you are switching to a new lender, a mortgage broker can help with the paperwork.

Step 3: Fill out the discharge authority form

You will need to fill out a discharge authority form. Depending on the regulations of your province or territory, you may be able to fill out the form yourself and have it notarised, or you may need a lawyer or notary to do it for you. The form can be obtained from the office or website of your local Registry of Deeds or a real estate attorney.

Step 4: Submit the form and pay any fees

After the form has been filled out and submitted, you will need to pay any applicable fees. You will then receive a letter stating that your mortgage has been officially discharged. Make copies of this letter, as you will need to take one to the Registry of Deeds office to be recorded. You may have to pay a filing fee for this final step, which ensures that the discharge is officially documented.

Step 5: Check the registry

To ensure that the discharge has been recorded correctly, you can check the registry website. Search by name or property, and you should be able to locate your mortgage, the discharge, and any other relevant documents. If you cannot find the Mortgage Discharge, contact your lender or an attorney's office to track it down and ensure it is properly recorded.

It is important to note that the specific process and requirements may vary depending on your location, so be sure to check the regulations in your province or territory.

Lender's rights removed

A mortgage discharge is a signed document from the lender indicating that the mortgage contract has been fulfilled. It is a formal public document that must be recorded, marking the repayment and completion of your mortgage. Once it has been finalized, the lender's rights are removed, and they no longer have any legal claim to your property.

The discharge process typically involves the following steps:

• Assemble the necessary paperwork: This includes the legal names of everyone on the home loan, your home loan account number, property details, and any other relevant information.
• Notify your lender: Inform your lender that you plan to discharge your mortgage and ask about any discharge fees and the expected timeline for the process.
• Fill out the discharge authority form: You may need assistance from a lawyer, notary, or commissioner of oaths, depending on the regulations in your province or territory.
• Submit the form and pay any applicable fees: After the form is submitted, you will pay any required fees.
• Obtain a letter of confirmation: You will then receive a letter stating that your mortgage has been officially discharged.
• Make copies and submit to the Registry of Deeds office: The final step is to make copies of the discharge letter and submit them to the Registry of Deeds office, where you may need to pay a filing fee to ensure the discharge is officially documented.

It is important to note that the specific process and requirements may vary depending on your location and individual circumstances. Therefore, it is always recommended to consult with a legal or financial professional familiar with the regulations in your area.

Registry of Deeds

When a mortgage is paid off, a mortgage discharge should be recorded with the Registry of Deeds to clear the title of the property. This is usually done by recording a document at the Registry of Deeds, often called a "Discharge of Mortgage" or a "Satisfaction of Mortgage". The discharge is usually a one-page document that the lender prepares and issues. Often, it is filed directly by the bank or a settlement attorney.

In some cases, the discharge may be sent directly to the person who is paying off the mortgage, and that person needs to record the discharge so that clear title can be conveyed to someone else. Under Massachusetts General Laws, Chapter 183, Section 55, a mortgage servicer, mortgagee, or note holder who is paid in full and receives satisfaction of the mortgage terms is supposed to record a discharge within 45 days of receipt of payment and provide a copy to the settlement agent, closing attorney, or other person sending the payoff.

If the holder is not the holder of record, the discharge needs to specify how the holder became the holder of the mortgage. It should also specify recording information for the documentation that supports the holder's status, record the documentation along with the discharge, or give the settlement agent, closing attorney, or person transmitting the payoff the recordable discharge and whatever documentation is necessary to show the holder's status of record.

You can bring the original Discharge of Mortgage provided by the bank or lending institution to the Registry of Deeds along with either cash or a check in the amount of $105.00 or $106.00, depending on the location. The Registry will record the Discharge and return it to you immediately or within a couple of weeks. You may also mail the original Discharge of Mortgage to the Registry for recording, along with the check for the recording fee.

Discharge fees

There are several reasons why you might need to pay a mortgage discharge fee. These include:

• When you sell your property.
• When you refinance your mortgage.
• When you change lenders.
• When you finish your last repayment.

In addition to the lender's discharge fees, there may also be additional fees charged by your lender, such as a settlement attendance fee or a fee to register the discharge of the mortgage with the land titles office.

It is important to note that the discharge process may differ depending on the province or territory in which you reside. In some cases, you may be able to fill out the mortgage discharge document yourself and have it notarized. In other cases, you may need a professional such as a lawyer, notary, or commissioner of oaths to fill it out for you.

Frequently asked questions