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Mortgage Discharge: Three Things You Must Know


A mortgage discharge is what makes the property yours. It comes handy while selling the property or changing lenders as well. But what is it and what does it involve? Let us have a look at the entire process to make things hassle-free when the time comes.


What is mortgage discharge?

When you take up a mortgage it implies you are taking a loan which is secured by property, usually your home. Your lender registers a charge on the property when you take out a mortgage. This charge or interest of the lender usually implies that the lender has a legal right on the property in the event of you failing to meet the terms and condition on which you are given the mortgage, also known as the mortgage contract. After you pay off the loan or the mortgage, the property doesn't automatically belong to you. You need to get it discharged.


What does the process of mortgage discharge involve?

Mortgage discharge is a process in which the lender, you, and the provincial title registry office are involved. The lender would first need to give an affirmation that your mortgage has been fully paid. To get this conformation you need to put in a request with your lender. The registry office is where the title of the property is registered. You or your lawyer would be required to submit all the necessary documents at the land registry office, who in turn remove the right of the lender from your property after verifying the documents. Thereafter, the title of the property becomes yours.


When can you discharge your mortgage?

You could discharge your mortgage when:


You have paid off the mortgage

As discussed above your or your lawyer can get the mortgage discharge after the loaned amount is paid off. You should not have any additional pending payments either such as a home equity line of credit with the mortgage. In case you do, you need to pay that off as well before getting your mortgage discharged.


Switching the lender

There may come a day when you get a better deal with another lender or for some other reason you opt to switch your lender. In such cases the title papers of your property need to be updated. The mortgage must first be discharged and then the new lender would be added in place of the old lender. You may have to pay a fee such as assignment fee for switching lenders. Pro Tip: Negotiate with the new lender and ask him to cover the costs towards the mortgage discharge.


Selling off the property

You may also need to get the property discharged when you are selling off your property. All the steps involved in the discharge of the property must be carried out to remove the lender's rights from the said property.

If you or someone you know is looking to get the mortgage discharged and need help, do reach out to LendX Financial in Brampton, Greater Toronto Area.

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