Mortgage Discharge

Close your real estate transaction with confidence. Available for virtual and in-person closing, we bring legal expertise to you in the most convenient and affordable way.

Arrange an Assumable Mortgage

Mortgage loans secured by property give lenders the legal right to prevent you from buying, selling, or refinancing your home. Unless you arrange an assumable mortgage when you sell your home, discharging mortgages is a legal necessity. Note that only a lawyer licensed by the Law Society of Ontario can discharge mortgages in Ontario.

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How It Works

01

Request Quote

Click on ‘Get Started’ button to receive a quote from us. If you decide to proceed, our customer care team will reach out to you within minutes to discuss the next steps.

02

Upload Files

You will receive a secure intake link in your inbox to submit your closing documents. After receiving your documents, we will work with the lender to prepare for closing while keeping you informed at all times.

03

Sign Agreement

Once your closing documents are ready, we will book an appointment to review and sign the documents with you. Depending upon your convenience and location, you can meet your lawyer in person or virtually. 

Documents We Need

At a consultation meeting with an Axess Law, we will need originals or certified true copies. 

You can email us the documents if you opt for an online appointment.

  • showing mortgage balances
  • expiration dates
  • per diems (daily interest rates)

How to Discharge Mortgages

Axess Law’s real estate lawyers discharge mortgages by arranging with your lender to pay off outstanding amounts and accompanying debts. Mortgage discharges release collateral your lender is holding to secure your debt. Removing a mortgage lender and “mechanic’s liens” — financial obligations like contractor’s liens or creditor’s debts — from title to your home or land is required before you can sell or transfer it to others. Requesting the mortgage payoff amount from your lender will show you the mortgage balance, daily interest, and expiration date of your mortgage. Axess Law uses that information to prepare a discharge of mortgage document and witness your signature to it. You receive a mortgage paid in full letter from your lender, while Axess Law files your discharge with a local land registry office.

When to Discharge Your Mortgage

Discharge your mortgage at the end of its life, when you change lenders, or when you sell land or homes in Ontario.

  • Who doesn’t look forward to paying off their mortgage early? While you can leverage a mortgage as the outstanding amount declines to secure assets like income property, discharging it allows you to invest money normally used for mortgage payments. 
  • Consider changing lenders when interest rates or better mortgage terms favour it. Ask your new lender if the cost of switching is covered and your current lender if they charge an assignment fee. If you choose to move your mortgage, Axess Law can discharge it and add your new lender to the property title.
  • Selling land or property requires you discharge your mortgage obligations or transfer the mortgage, if it is portable. to other properties. Axess Law discharges your mortgage with a minimum of fuss and expense or changes the title to the property to your next address. 
 

Open, Closed or Variable Mortgage?

Discharging your mortgage to get a better rate elsewhere? The next question is what type to choose:

Open mortgages allow extra payments, without penalties
Closed mortgages are less flexible, but have lower interest rates
Variable mortgage interest rates change with market conditions
If you prefer knowing what your payments will be, choose open or closed

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Convenient Appointments

Make an appointment by calling +1.877.402.4207 or fill out our online booking form. Axess Law gives you the choice of booking an online or in-person appointment. Our lawyers are available 7 days a week, at times convenient for you. We can meet in person, by phone, email, or via a remote video call. In addition to these, there are 5 Axess Law offices located across the Greater Toronto Area – all with onsite parking or easily accessible by public transit.

Some FAQs

Second mortgages must be discharged on the title before you sell or buy real estate in Ontario. Check with your mortgage lender about transferring second mortgages to new properties when you sell.
You may still owe money on a property you own after a buyer makes an offer. Mortgage lenders have a legal right to hold your property as collateral unless you discharge mortgage debts in full. Provided you have other income or investments, you could make up the difference yourself. If your credit is good or you buy a new property that is undervalued, you may be able to get a line of credit to pay outstanding mortgages.
Married spouses usually have survivorship rights for matrimonial homes. Some common-law couples are also joint tenants on title and co-borrowers on mortgages. Being a joint tenant means you have survivorship rights when a spouse dies and need only request that Axess Law prepare a survivorship application and amend the title to formally remove your spouse’s name. If your home is mortgaged, you are liable for the mortgage debt. Most lenders recommend mortgage life insurance to pay out the mortgage if you, your spouse, or both of you die while your home is mortgaged.
Homeowners often ask us why they have to pay mortgage discharge fees or what to do if they disagree with mortgage prepayment penalties or interest differential rates. Most mortgage lenders charge administrative fees to discharge mortgages and they must clearly and simply state both their fees and prepayment penalties in mortgage documents. You can contact the Ontario Ombudsman for Banking Services and Investments if you have already complained directly to your lender and still have serious concerns about prepayment penalties a mortgage lender is charging.

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