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Mortgage Glossary

What is Mortgage Discharge?

A mortgage discharge is the legal process of removing the lender's claim, or charge, from a property's title once the loan has been fully repaid. It confirms you own the home free and clear of that mortgage. In most Canadian provinces the lender charges a discharge fee to complete the paperwork.

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Quick answer

A mortgage discharge is the legal process of removing the lender's claim, or charge, from a property's title once the loan has been fully repaid. It confirms you own the home free and clear of that mortgage. In most Canadian provinces the lender charges a discharge fee to complete the paperwork.

Also known as: mortgage discharge, discharge of mortgage, releasing the mortgage

Key points

  • A discharge removes the lender's charge from title once the mortgage is paid off.
  • It is required when you pay off, sell, or refinance away from your current lender.
  • Most provinces and lenders charge a discharge fee for the administrative work.
  • The discharge is registered through the provincial land registry.
  • Without a discharge, the old charge can cloud title and block a sale.

Mortgage Discharge explained

When you take out a mortgage, the lender registers a charge against your property's title as security for the loan. A mortgage discharge reverses this: once the balance is paid in full, the lender prepares and registers a discharge document that removes the charge, leaving your title clear of that debt.

Discharge typically happens when you pay off the mortgage, sell the home, or refinance with a new lender who pays out the old one. The process is handled through the provincial land registry, often with a lawyer or notary involved. Most Canadian lenders charge a discharge fee, which varies by province and lender, to cover the administrative work.

What a Mortgage Discharge is for

A mortgage discharge exists to give clear legal evidence that a debt secured against your home no longer exists. Without it, the lender's charge would remain on title, clouding ownership and making it difficult to sell or refinance the property even though the loan is paid.

How it can help you

Understanding discharge helps Canadian homeowners budget for the fee and avoid surprises when paying off or switching lenders. Knowing a discharge is required prevents stalled sales caused by lingering charges on title. Lenderoo shops 40+ lenders free, so when you refinance you can weigh discharge fees alongside rates to find the best overall deal.

When it comes up

A mortgage discharge comes up when you make your final payment, sell your house, or move your mortgage to a new lender. In each case, the existing charge must be discharged so the title reflects that the original loan is gone.

Example: discharging at the finish line

Suppose you make your last mortgage payment and your balance hits zero. The lender then prepares a discharge and registers it with the provincial land registry, removing their charge from your title.

If your lender's discharge fee is, say, $300, you pay that to cover the paperwork. Once registered, your title is clear of the mortgage, and you have documented proof that you own the home outright.

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Questions & answers

Mortgage Discharge: frequently asked questions

Common questions Canadians ask about mortgage discharge.

Keep learning

Related mortgage terms

Title

The legal record of who owns a property and any claims or charges registered against it.

Read definition

Lien

A legal claim registered against a property as security for a debt or obligation.

Read definition

Refinancing

Replacing your existing mortgage with a new one.

Read definition

Renewal

Renegotiating your mortgage terms at the end of a term.

Read definition

Lender

A financial institution or company that provides the money for a mortgage.

Read definition
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