Your Home / Your Home

Legal Matters: One more mortgage hoop to jump through

Even though the debt is fully paid out, doesn’t mean it automatically get ruled off title.

If your mortgage is still showing on title after your debt has been paid off,  you might need to talk to your lawyer.

Contributed

If your mortgage is still showing on title after your debt has been paid off, you might need to talk to your lawyer.

Q: I bought my home several years ago and was fortunate enough to be able to pay my mortgage out a few years later.  I received a letter from my bank confirming that the mortgage was fully paid.  I thought that was the end of it. 

Last week I went into my bank to get a line of credit and my banking officer noted that the mortgage still showed on title. She indicated that I should follow up with my lawyer who may not have registered the discharge.  I reached out to my lawyer who assisted me with the initial purchase to enquire why the mortgage was still on title.  What can I do
?

A:The reality is that even though the debt is fully paid out, doesn’t mean it automatically get ruled off title. 

You would have received a letter that either instructed you to make sure you engage with your lawyer to have the charge removed from title or more often now, the bank has gone ahead and registered the discharge for you (a copy of the registered discharge would be included). Your lawyer will state a charge for drafting and registering this document on title. 

One way or the other, you have to make sure this charge is off title: paying it out doesn’t ensure this.
    
Just one more hoop to jump through.