Definition
Mortgage discharge is the legal act by which a lender consents to the cancellation of their mortgage in the Land Registry, after full loan repayment. This step is mandatory to 'clean' the property title.
Situations triggering discharge: - **Property sale**: discharge is performed by the transaction notary, funded from sale proceeds. - **Refinancing with lender change**: the new lender requires the outgoing lender's mortgage to be discharged. The notary performs the discharge and registers the new mortgage. - **Full repayment at term**: the borrower pays the final balance and requests discharge.
Typical costs: - Notarial fees: $400-$800 (discharge deed + Land Registry registration) - Land Registry registration fees: $88-$198 (depending on deed type) - Administrative fees from outgoing lender: $0-$350 (varies by institution)
Important note: a collateral mortgage (TD, universal hypothec) incurs mandatory and higher discharge fees when transferring, unlike a conventional mortgage that can be transferred without discharge by some lenders.