How much does it cost to discharge a mortgage in Ontario?
When you pay off a mortgage — whether at sale, renewal with a new lender, or on your own — the lender must register a discharge of charge on title at the Ontario land registry. This formally removes the lender's interest from your property.
Costs vary depending on how the discharge is handled. Lenders typically charge an administrative or discharge preparation fee. Your lawyer charges a fee for registering the discharge with the land registry. The land registry itself charges a registration fee. Altogether, discharge costs are generally modest — often a few hundred dollars — but vary by lender and the complexity of the transaction.
If you are selling, the discharge usually happens on or shortly after closing and is coordinated by your lawyer with the lender. If you are refinancing with a new lender, the new lender's lawyer typically manages the discharge of the old mortgage. Delays in receiving discharge documents from the lender can occasionally cause issues, particularly with private lenders who may be slower to cooperate. Your lawyer can contact the lender to confirm timelines well in advance of your closing date.
Key takeaways
- Discharging a mortgage requires registration at the Ontario land registry.
- Costs include a lender fee, a lawyer's fee, and a land registry registration fee.
- Your lawyer coordinates the discharge on closing or refinancing.
- Private lenders can sometimes be slow — confirm timing early.