Service Overview
Focused legal support for mortgage discharge
A mortgage discharge removes a lender’s registered mortgage interest from a property’s title. Paying the loan balance and completing the discharge are separate steps: the registration does not automatically disappear after the final payment. Any other obligations secured by the same mortgage must also be addressed before it can be discharged. The Financial Consumer Agency of Canada explains the mortgage discharge process.
Our office assists with discharges following a sale, a refinancing transaction, or repayment of a mortgage. We also help private lenders prepare the documents needed to release their registered interest once the agreed payout requirements have been met.
The mortgage discharge process
The steps depend on the lender and the transaction, but generally include:
- Requesting a payout statement: We obtain the lender’s statement showing the amount required for the proposed payout date, including applicable interest, discharge fees, and prepayment charges.
- Arranging payment: For a sale or refinancing, the payout is coordinated with the transaction proceeds. When the owner is paying off the loan separately, we confirm the funding and payment arrangements with the client and lender.
- Preparing the discharge documents: We coordinate the documents and authorizations required by the lender. For a private mortgage, this may include preparing a discharge for the lender’s approval and signing.
- Registration and confirmation: We arrange registration or follow up with the lender or its lawyer, as appropriate, and confirm the status of the mortgage on title. The timing and responsibilities depend on the closing arrangements and the lender’s process.
How we can help
- Payout review: Checking the payout requirements and identifying fees or other amounts that need clarification before funds are sent.
- Closing coordination: Working with the parties involved in a sale or refinancing so the discharge is addressed in the closing arrangements.
- Private mortgage documentation: Preparing or reviewing the lender’s discharge documents and the necessary registration authority.
- Title follow-up: Confirming that the particular mortgage has been discharged and identifying any outstanding steps.
Who may need a mortgage discharge
- Homeowners who have repaid their mortgage and want the lender’s registered charge removed.
- Sellers who must address an existing mortgage as part of their sale.
- Borrowers refinancing with a new lender where the existing mortgage must be discharged.
- Private lenders who have received repayment and need assistance releasing their mortgage security.
Discharging one mortgage does not remove other mortgages, liens, or interests that may be registered against the property. We review the relevant title and transaction requirements with you.