16 May 2022

Mortgage Discharge: What Do I Need to Know?

Mortgage Discharge

Paying a mortgage down to nil is an exciting moment for homeowners. After 30 years of repayments, it’s quite an accomplishment to send the last one to the lender. Plus, you’ll own 100% equity in the property. At this point, homeowners still have more to do to officially close the account. Homeowners go through the mortgage discharge process.

Homeowners must fill out the appropriate paperwork and turn it into the lender. Then, the lender processes the paperwork. Processing the paperwork can take 10 business days to complete.

The reason why homeowners must discharge the mortgage is to ensure that the lender records it on their end. Then, the homeowners receive a letter acknowledging it. The closing process also incurs some fees. Homebuyers who would like to avoid the opening and closing fees can apply for a Mortgage House no fee mortgage, one mortgage choice we offer. 

If a homeowner forgets to discharge their mortgage, it doesn’t create an issue. However, when you attempt to sell the home, it will slow the sale down. Homeowners can sell homes with outstanding mortgages. The lenders take the outstanding amount from the proceeds and complete the paperwork. Homeowners who take a proactive stance ensure that their mortgage paperwork remains accurate. 

You might not sell the home; you might opt to pass it on to your children. Nonetheless, fiscal responsibility means keeping all paperwork up to date. 

Mortgage Discharge Conclusion

The mortgage discharge process is necessary to formally acknowledge that the homeowner paid it off in full. Lending specialists at Mortgage House can provide more information. Contact our team today.

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