Discharging a mortgage in Ontario

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Jan 19th, 2021 11:44 pm

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Nov 3rd, 2020 3:53 pm

Tiberius [OP]: Deal Fanatic; Feb 3, 2005; 5097 posts; 1130 upvotes; Georgetown

Nov 3rd, 2020 3:53 pm

Discharging a mortgage in Ontario

I'm looking for some info on how to discharge a mortgage in Ontario. I have paid off a mortgage entirely and paid the discharge fee to the mortgage lender. I was told they would send documentation needed to register the discharge of the mortgage - but nothing has been sent yet. Assuming they finally send this document, what are the next steps? Ideally, I would rather not go through a lawyer and incur more fees - if that is possible.

Surely someone here has traversed this process before? Any tips/guidance is appreciated!

10 replies

Nov 3rd, 2020 3:58 pm

hammer: Deal Addict; Oct 4, 2001; 1463 posts; 130 upvotes

Nov 3rd, 2020 3:58 pm

As soon as my parents paid it off, they got a discharge letter from the bank (RBC). That is it. We gave this letter to the lawyer when they sold the house. House was sold and all is well.

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Nov 3rd, 2020 4:07 pm

Jerico: Deal Guru; Jan 25, 2007; 12529 posts; 7708 upvotes; Paris

Nov 3rd, 2020 4:07 pm

Tiberius wrote: ↑ I'm looking for some info on how to discharge a mortgage in Ontario. I have paid off a mortgage entirely and paid the discharge fee to the mortgage lender. I was told they would send documentation needed to register the discharge of the mortgage - but nothing has been sent yet. Assuming they finally send this document, what are the next steps? Ideally, I would rather not go through a lawyer and incur more fees - if that is possible.

Surely someone here has traversed this process before? Any tips/guidance is appreciated!

Discharge fee should include them filing the papers. I believe they legally must file within 60 days of payoff. Also, congrats!

Nov 3rd, 2020 4:31 pm

jdmfishingonly: Deal Fanatic; Oct 13, 2008; 7105 posts; 3628 upvotes; Durham

Nov 3rd, 2020 4:31 pm

Tiberius wrote: ↑ I'm looking for some info on how to discharge a mortgage in Ontario. I have paid off a mortgage entirely and paid the discharge fee to the mortgage lender. I was told they would send documentation needed to register the discharge of the mortgage - but nothing has been sent yet. Assuming they finally send this document, what are the next steps? Ideally, I would rather not go through a lawyer and incur more fees - if that is possible.

Surely someone here has traversed this process before? Any tips/guidance is appreciated!

Your bank (assuming that is where you got your mortgage at) would discharge.

The mortgage department is responsible to discharge once the mortgage is paid in full within 3 months.

If it has not been done by then .... approach the Branch Manager of your Bank.

And there is NO FEES ASSOCIATED WITH THE DISCHARGE because the bank is doing it.

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Nov 3rd, 2020 4:54 pm

Tiberius [OP]: Deal Fanatic; Feb 3, 2005; 5097 posts; 1130 upvotes; Georgetown

Nov 3rd, 2020 4:54 pm

Thanks for the answers everyone - the mortgage was with MCAP.

Sites like this make it sound like more steps are required: https://satlaw.ca/a-guide-to-the-ins-an ... n-ontario/

I do have a Payout statement from MCAP that lists their discharge fee ($380) and a "government charge for discharge" fee ($77.31). That second charge makes me believe they did file the discharge and hopefully there is nothing for me to do. I googled that in Ontario there is a $75 fee to remove a mortgage lenders charge from a mortgage... which kinda aligns with that 77.31 fee.

Nov 3rd, 2020 5:44 pm

exrcoupe: Deal Addict; Apr 26, 2003; 2594 posts; 1639 upvotes; GTA

Nov 3rd, 2020 5:44 pm

Congrats on being mortgage free. I was once that but now we have a new one for the new house. It's amazing how much money you can save when you don't have a mortgage.

Nov 3rd, 2020 6:37 pm

dirtmover: Deal Fanatic; Nov 2, 2005; 5125 posts; 2431 upvotes; WFH

Nov 3rd, 2020 6:37 pm

hammer wrote: ↑ As soon as my parents paid it off, they got a discharge letter from the bank (RBC). That is it....

Same here except it wasn't. A few years later I went to secure another loan on my property it turns out RBC had not discharged the mortgage despite me having the letter to say it was.

Nov 3rd, 2020 6:46 pm

DaveTheDude: Deal Addict; Mar 3, 2018; 3272 posts; 3671 upvotes; GTA

Nov 3rd, 2020 6:46 pm

Contact your lender's manager and request that your fee be returned for non performance of a paid service. This is what I had to do to get the bank to process my discharge.

+1

Jan 19th, 2021 7:57 pm

Ballroomblitz1: Deal Addict; Oct 2, 2018; 2871 posts; 3364 upvotes; Toronto

Jan 19th, 2021 7:57 pm

Timely topic, we have 15 months to go on our mortgage so learning something new here.

I assume once the last mortgage payment is made our bank will process the discharge paperwork....do we have to pay any fee?

Once you get the discharge letter anything else to do other than having a mortgage burning party to celebrate...

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Jan 19th, 2021 8:28 pm

zeddy: Deal Addict; Jun 12, 2008; 1603 posts; 1186 upvotes; Ripley

Jan 19th, 2021 8:28 pm

Ballroomblitz1 wrote: ↑ Timely topic, we have 15 months to go on our mortgage so learning something new here.

I assume once the last mortgage payment is made our bank will process the discharge paperwork....do we have to pay any fee?

Once you get the discharge letter anything else to do other than having a mortgage burning party to celebrate...

bank-mortgage-discharge-documents-2438958/

Jan 19th, 2021 11:44 pm

thelefteyeguy: Deal Expert; Jun 9, 2003; 25229 posts; 2414 upvotes; Markham, ON

Jan 19th, 2021 11:44 pm

Give notice to your insurance...I got a check back for $30 from them also

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