You are the new owners of a beautiful home and have taken out a mortgage to make your dream come true. You should know that when you take out a mortgage, the lender registers a right that is a lien on your property.

This prerogative gives the lender the legal right to seize your property in certain situations. For example, they can confiscate your property if you have not respected the terms of your mortgage (timely repayment, maintenance, etc.).

That said, the lender does not have to give up its rights to your property. Even if the rules governing your mortgage agreement are followed to the letter, certain steps must be taken to remove the lender's rights. This is called a mortgage discharge.

Favourable circumstances to obtaining a mortgage discharge

Firstly, you can obtain a mortgage discharge when your mortgage is fully paid off. To do this, you will need to make sure that you have no outstanding balance on other financial products. If you have a home equity line of credit associated with your mortgage, you will need to pay it off and close it before you can get a discharge. If you plan to use your home as security for a loan or line of credit with the same lender, it is best to waive the mortgage discharge.

Secondly, you may be able to negotiate your mortgage and even change lenders if you find a better deal. When you change lenders, your title information will need to be updated. In this case, you, your lawyer or your notary will need to obtain the discharge of your original mortgage.

Finally, if you sell your property, you will need to obtain a mortgage discharge. Once the discharge is granted, the lender will no longer have any rights to the property. You, your lawyer or your notary will need to complete each of the steps set out by your land registry office. Is the discharge completed? If so, the lender's interest in your property is officially withdrawn.

What to expect when obtaining a mortgage discharge?

The process of obtaining a mortgage discharge involves your lender, your land registry office (provincial or territorial) and of course, you!

In the vast majority of cases, you will be dealing with a lawyer, notary or commissioner of oaths. You will first need to receive confirmation from your lender that you can obtain a mortgage discharge. Most of the time, this confirmation is only given on request.

Next, you, your lender, your lawyer or your notary will have to submit all the required documents to the land registry office. Only after receiving the documents will the office remove the lender's rights to your property. To achieve this change, the title to your property will then be updated.

As you can see, obtaining a discharge requires the constant contribution of your mortgage broker. They will be able to guide you through the sometimes tortuous path to obtaining one.