06 Aug 2022

What is the purpose of a discharge form in mortgage?

Purpose of Discharge Forms Mortgage

It is confusing when you’re at the end of your mortgage and you have to pay a discharge fee. It is normal to have questions like; What is a discharge fee? Why is a discharge form essential? What is a discharge form? Why do you have to complete it? These are all questions necessary to ask a mortgage lender when you are confused at the end of your process. 

The discharge form is necessary because it officially removes a lender from the title and property. When you are complete with the mortgage process and you no longer have debt tied to that loan, you can remove the lender from your title. Once the lender is removed, you get a piece of paper that states that you are the sole owner of the property or piece of land. The mortgage discharge form is a form that shows you have repaid the loan. Without the complete form and the cost directly to your lender, the government does not know you have control over the land and the property. 

There are other reasons a person might need to complete this form. If you are refinancing to a new lender, you will need to discharge the mortgage directly to the other lender before starting the new loan.

Purpose of Discharge Forms Mortgage Conclusion

To conclude there are many purposes for a discharge form in the mortgage. It costs nothing to complete the form, but there are costs and fees associated with discharging your mortgage after sending the form directly to your lender.

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