A mortgage discharge is a legal document that releases a collateral hold -- most often a loan -- from a piece of real estate. In order to refinance, sell or buy a home, a property title must be clean. This means that all old liens and mortgages have to be discharged. Discharging a mortgage in Ontario, Canada, is a relatively simple process, and with the proper paperwork can be handled in under a week.
Confirm that the mortgage you are trying to discharge is paid in full. If a balance remains, pay it off. Request a payoff figure from the owning mortgage company with the balance, a per diem, and an expiration date.
Obtain a blank Discharge of Mortgage document. This can be obtained online, from a real estate attorney, or at your local Registry of Deeds.
Contact a real estate attorney who is also a notary. This person will need to witness the completion of the form.
Schedule a meeting with the original mortgage holder, yourself, and the real estate attorney. All parties must be present. The original mortgage company must complete the discharge form and the attorney must witness and confirm with a signature and embossed seal.
Bring your mortgage paid-in-full letter to the meeting. While the original mortgage holder will have this information in its records, having a copy will expedite the process. Pay the mortgage company a discharge fee -- this will vary from lender to lender and there is no cap.
Make several copies of the discharge for your records. Bring the original discharge to your local Registry of Deeds. Have an abstractor record the mortgage discharge on your property in the registry. You will need to pay an additional fee to record the discharge.
If a mortgage was paid off in the past (even recent past), your mortgage company may have already handled the mortgage discharge. Check with your mortgage company prior to taking action on a mortgage discharge.
Things You'll Need
Mortgage statement showing zero balance
Paid-in-full letter from mortgage company
Blank mortgage discharge form