A mortgage cancellation, also known as a "discharge” in Quebec, allows you to end your mortgage. When you sell your home or pay off your mortgage in full, its registration is removed from the land registry.
If you have a conventional mortgage, the mortgage can be written off as soon as your mortgage is paid in full.
In the case of a collateral mortgage, the borrower must inform
the lender and pay off all secured debts.
Let's look at a concrete example:
You sell your house to a new buyer before having fully paid off
your mortgage. In this case, you will have to write off your
mortgage. You will pay back all the money you owe the lender with part
of the gain from the sale of your property.
If your mortgage is registered in the land registry, it’ll have
to be written off on resale, whether it is paid in full or in part.
Once the mortgage has been written off, your property will no longer
be available as security.
Good to know:
Certain legal and administrative fees may apply to discharge your
mortgage. These fees vary depending on the lender and the laws of
your province or territory. Contact your land title registry’s office for more
Want to learn more?