Mortgage Discharge in Canada (2025): What Happens When You Pay It All Off

• What Is a Mortgage Discharge?

• Why You Need It (Even After Paying Off Your Loan)

• Real-Life Example: Simi and Harpreet’s Payoff Moment

• Who Handles the Discharge — You or the Lender?

• Step-by-Step Process to Discharge a Mortgage in Canada

• Mortgage Discharge Fees by Province

• Discharging a Mortgage Without a Lawyer: Is It Possible?

• What About Partial Discharge?

• What If Your Mortgage Was Insured?

• How Long Does the Process Take?

• Final Advice from a Mortgage Expert

So you’ve finally paid off your mortgage — congrats! 🎉 But before you pop the bubbly, there’s one more thing to do: discharge your mortgage. It’s not automatic, and if you skip this step, your lender will still show up as a legal claim on your home. This guide walks you through exactly what a mortgage discharge is, how it works in Canada, and what to expect during the process in 2025.

What Is a Mortgage Discharge?

A mortgage discharge is the legal process of removing the lender’s name from your home’s title. When you first took out the mortgage, your lender registered a claim — or ‘charge’ — against your property. That means they had a legal right to your home if you didn’t pay. Once you’ve paid it all off, you have to officially ask for that charge to be removed.

Why You Need It (Even After Paying Off Your Loan)

Many people assume that paying off the loan means everything is automatically cleared — but in Canada, it doesn’t work that way. Until you file a discharge, your lender’s legal claim stays on your home’s title. That can cause delays if you try to sell, refinance, or take out a home equity line of credit. It’s like having a ‘paid but still pending’ stamp on your home that needs to be cleared.

Real-Life Example: Simi and Harpreet’s Payoff Moment

Simi and Harpreet, a couple from Surrey, finished paying off their 20-year mortgage in April 2025. They were excited to be debt-free but got confused when their lawyer told them their lender was still showing on the property title. Turns out, they hadn’t filed a discharge. Their lawyer helped them file the paperwork, and two weeks later, they officially owned their home outright — with no claims attached. They now tell all their friends not to forget this important last step!

Who Handles the Discharge — You or the Lender?

In many cases, your lender will start the discharge process, especially if you ask. But that doesn’t mean they’ll finish it — or cover the cost. Some lenders send the necessary forms but expect you or your lawyer to submit them to the provincial land registry office. Others charge an extra fee to complete the process for you. It’s important to clarify this when you reach the end of your mortgage term.

Step-by-Step Process to Discharge a Mortgage in Canada

Here’s how it usually works:
1. Confirm with your lender that your mortgage is fully paid off.
2. Request a discharge statement or certificate from the lender.
3. Either your lawyer or your lender prepares the discharge document.
4. The discharge is filed with your provincial land registry (online or in person).
5. The title is updated to show that you now fully own the home.

Mortgage Discharge Fees by Province

Each province has its own rules and fees. In Ontario, for example, the discharge fee is about $78 if done electronically, but legal fees can push the total to $400 or more. In BC, you’ll pay $35 to file, plus any lawyer or notary costs. Your lender may also charge a separate ‘discharge fee’, which typically ranges from $200 to $400 depending on the institution. Always ask your lender for a breakdown of all costs involved.

Discharging a Mortgage Without a Lawyer: Is It Possible?

Yes — if you’re confident with forms and legal procedures, you can do it yourself. Most provincial land registry systems allow direct online submissions. However, mistakes can delay the process or leave your title with unresolved claims. That’s why most Canadians prefer using a lawyer or notary, especially for peace of mind.

What About Partial Discharge?

In rare cases — like if you have a large property with multiple lots — you might want to discharge just one part of the land from your mortgage. This is called a partial discharge. It’s more complex and usually requires lender approval and legal help. Most regular homeowners won’t need this, but investors or developers might.

What If Your Mortgage Was Insured?

If your mortgage was insured through CMHC or another provider, that doesn’t affect the discharge process itself. Once the loan is paid off, the insurance ends. The only thing to watch for is if there are any extra steps or paperwork your lender requires based on that insurance agreement — but that’s rare.

How Long Does the Process Take?

Most mortgage discharges are completed within 2 to 4 weeks. If you’re using a lawyer or notary, they’ll handle the timing and notify you once it’s done. If you’re doing it yourself, delays can happen if the forms are filled out incorrectly or the registry system needs more documents. Either way, don’t wait till the last minute — especially if you plan to refinance or sell.

Final Advice from a Mortgage Expert

Paying off your mortgage is a huge milestone — but make sure to finish the paperwork! Discharging your mortgage officially clears your title and gives you full control of your home. Check with your lender about their discharge process, confirm all fees upfront, and decide whether you want a lawyer or notary to handle it for you. It’s a small step, but it seals your freedom — and makes your mortgage-free status feel very, very real.