We’ve all been through the process of buying or selling a home in Canada, obtaining a mortgage, paying off a mortgage, and sometimes even taking out a second or third mortgage when you’re trying to refinance your home. During this process, you may have come across the terms “charge” or “discharge.” However, we realize that these terms are not very familiar to Koreans, and sometimes you may have come across documents without understanding them, so we want to make sure you understand them. In other words, when you get a mortgage from a bank or other lender, the bank or lender registers a lien on your real estate instead of lending you money, and a mortgage discharge is the termination of the lien on your real estate after you pay back all the money you borrowed from the bank or lender. I hope you can at least understand the meaning of mortgage charge and mortgage discharge right away.
1. What is a Mortgage Discharge?
What is a mortgage discharge? A mortgage is a loan secured by property, such as a home. When you take out a mortgage, the lender registers or charges an interest in your property. This means that the lender has the legal right to take your property. If you don’t comply with the terms of your mortgage agreement, they can repossess your property. If you have a loan secured by your home, it’s important that you pay your mortgage, close the mortgage, and keep yourself on the books as the owner. When you pay off your mortgage and fulfill the terms of your mortgage agreement, the lender doesn’t automatically give up their rights to your property. There are steps they need to take. This process is called a mortgage discharge, and it’s usually completed through a lawyer’s office.
2. What to Expect When Discharging Your Mortgage
Discharging your mortgage is a process that involves you, your lender, and the state or territory land titles registry office.
This process can be done in person in your state or territory. Keep in mind that even if you work with your bank to terminate your mortgage on your own, you’ll still need to use a lawyer to register the termination of your mortgage with the Land Titles Registry Office.
3. Your Lender’s Role
Typically, your lender will provide you with confirmation that Yarabun has paid off your mortgage. Most lenders will not send this confirmation unless you request it. You should check with your lender to see if they have a formal process for this request, and remember that even if they do, it must be completed at the Land Title Registry office.
➤ Your Land Title Registry Office’s Role
The land title registry office is part of the state or territory government. This office registers official property ownership. There is a process for changing property ownership. Your lawyer will provide the land registry office with all the necessary documents, and once the documents are received, the land registry office will remove the lender’s rights to your property.
➤ When can you discharge your mortgage
You can discharge your mortgage after you’ve paid it off. However, you’ll need to make sure you don’t owe any money on the property. For example, you may have a Home Equity Lines of Credit (HELOC) with your mortgage. If you borrowed money through this program, you can close the mortgage after you’ve paid off all the money you borrowed from the bank.