Mortgage Discharge and Release: Registration and Fees

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When a mortgage loan is fully repaid, the borrower has the right to obtain a discharge from their lender and the release (cancellation) of the mortgage from the land registry. This right is protected by the Civil Code of Quebec (CCQ), which provides in articles 2797 and following that the creditor must consent to the cancellation of the mortgage once the secured obligation is extinguished. The discharge is the legal document by which the lender acknowledges that the debt is fully repaid and renounces the mortgage security. The release is the notarized act that enables the cancellation of the mortgage registration at the Registre foncier du Québec. Without this cancellation, the mortgage continues to appear on the location certificate and land registry, even though the loan is repaid. Fees associated with the release in Quebec include notary fees (generally between $500 and $1,200) and land registry publication fees. The timeline to obtain the discharge ranges from a few days to a few weeks after full repayment. Some lenders charge administrative fees for preparing the discharge ($50 to $300). It is important to note that cancellation is not automatic: the borrower or their notary must request it and bear the costs. In practice, the release is necessary when you sell your property, when you switch lenders at renewal (collateral mortgage), or when you simply wish to clear your title of any mortgage charge after full repayment.

Mortgage Discharge and Release: Clearing Your Property Title

When you fully repay your mortgage loan, your obligation to the lender is extinguished. However, the mortgage registration at the Registre foncier du Québec does not disappear automatically. To officially release your property from this charge, it is necessary to obtain a discharge from your lender and proceed with the release (cancellation) through a notary. This process, while routine, involves timelines and costs that are important to understand.

Essential Definitions

Discharge (quittance)

Release (mainlevée / radiation)

Legal Framework in Quebec

The Civil Code of Quebec (CCQ) rigorously governs the right to discharge and cancellation. Article 2797 CCQ states that a registration of a right is cancelled when the holder of the right consents to the cancellation. Articles 3057 and following specify the terms for cancellation at the land registry. The lender has a legal obligation to consent to cancellation once the mortgage is extinguished by full payment. In case of unjustified refusal, the borrower can apply to the court for a judicial cancellation pursuant to article 2799 CCQ.

Steps for Obtaining a Release

Full loan repayment: Once the final payment is made (or the balance is prepaid), confirm with your lender that the balance is zero and request the preparation of the discharge.
Obtain the discharge from the lender: The lender prepares the discharge document within 5 to 15 business days. Some lenders charge administrative fees of $50 to $300 for this service. Check whether these fees were mentioned in your original mortgage contract.
Notary involvement: The notary receives the discharge from the lender, prepares the release deed, and has it signed by the relevant parties. Notary fees range from $500 to $1,200 depending on the complexity of the file.
Publication at the Registre foncier du Québec: The notary publishes the release deed at the land registry, officially removing the mortgage registration from your title. Publication fees are approximately $70 to $100. The cancellation appears on the registry within a few days.

When Is a Release Necessary?

Sale of the property: the notary handling the sale must deliver a charge-free title to the buyer. The release is therefore mandatory and fees are deducted from the sale proceeds.
Switching lenders (collateral mortgage): if you transfer your mortgage to a new lender and the old one is registered as a collateral charge, a discharge and new registration are required.
End of repayment: once your mortgage is fully repaid, the release ensures your title is clear and facilitates any future transactions.
Estate settlement: when settling an estate, heirs must ensure all mortgage charges are cancelled to freely dispose of the property.

Frequently Asked Questions

Is the cancellation of my mortgage from the land registry automatic?

No. Even after full repayment of your mortgage, cancellation is not automatic in Quebec. It is necessary to engage a notary to prepare the release deed and publish it at the Registre foncier du Québec. Without this step, the mortgage registration remains on your property title indefinitely.

How much does a mortgage discharge cost in Quebec?

Total fees include notary fees ($500 to $1,200), publication fees at the Registre foncier du Québec (approximately $70 to $100), and the lender's administrative fees for preparing the discharge ($50 to $300 depending on the institution). The total typically ranges from $700 to $1,500.

Can my lender refuse to give me the discharge?

No. Article 2797 of the Civil Code of Quebec requires the creditor to consent to the cancellation of the mortgage when the secured obligation is extinguished. If your lender refuses or unduly delays, you can request a judicial cancellation from the court. In practice, this situation is rare but is governed by law.

Do I need to obtain a discharge if I sell my property?

Yes. During the sale, the acting notary must ensure all mortgage charges are cancelled to transfer a clear title to the buyer. The mortgage balance is typically repaid from the sale proceeds, and discharge fees are deducted from the amount you receive.

How long does it take to get the discharge from my lender?

The timeline varies by lender. Major chartered banks typically take 5 to 15 business days to prepare the discharge after full repayment. Desjardins caisses and monoline lenders may be faster. In the case of a sale, the notary coordinates this process to meet the closing date.

Should I discharge a mortgage even if the loan was repaid long ago?

It is not legally mandatory, but it is strongly recommended. An undischarged mortgage complicates any future transaction (sale, refinancing, new mortgage). Additionally, over time, it may become more difficult to obtain the discharge if the lender changes names, merges with another institution, or ceases operations.