How to Discharge a Paid-Off Mortgage From Your Alberta Land Title

You made your last mortgage payment, and it feels finished. But the public record at Land Titles may still show the lender's mortgage against your property. That can cause trouble later when you sell, refinance or borrow against your home.

This guide walks through how a paid-off mortgage is removed from an Alberta land title: what you do, what the lender must do, and what your options are if the lender does not cooperate.

This article covers the law of Alberta.

Why the mortgage is still on title after you pay it off

A mortgage in Alberta is a charge on land created to secure a debt or loan. A registered mortgage works as security only. It does not transfer the land, so you remain the registered owner throughout.

The flip side is that the lender's charge does not disappear on its own when the debt is paid. The Registrar discharges a mortgage, wholly or in part, according to the terms of the discharge, and enters it on the certificate of title. Until that happens, the registration is still there.

Step by step: getting the discharge

• Pay off the mortgage and any related home equity line of credit (HELOC).
• Ask the lender to confirm in writing that the mortgage is paid in full. Most lenders do not send this unless asked.
• Ask for the discharge of mortgage. The lender must furnish it within 30 days once the mortgage is fully paid.
• Have the documents prepared. A lawyer, notary or commissioner of oaths usually does this.
• Submit the signed discharge to Land Titles so the lender's rights are removed and title is updated.

A discharge is normally in the prescribed form, signed by the mortgagee and accompanied by the proper affidavit of execution. Land Titles may charge a fee for the filing, and the amount for a discharge depends on the current fee schedule. Confirm the current amount and how to submit with Land Titles or your lawyer.

What the lender must do, and what it cannot charge

Under the Law of Property Act, a lender cannot charge a fee or expense for the discharge. A lender who fails to provide the discharge, or who charges for it, commits an offence with a fine of up to $500.

The 30-day clock runs from the time the mortgage is fully paid. Keep your payout confirmation and your written request, because dates matter if you need to follow up.

Separate from the lender, you may pay a professional to prepare and file the paperwork. The Financial Consumer Agency of Canada gives a general range of $400 to $2,500 for lawyer, notary or commissioner of oaths fees. Your own cost depends on who you hire and what is involved.

When the lender can't or won't sign

Sometimes a lender has merged, closed or simply does not respond. The Land Titles Act has several routes, depending on your situation.

• Joint mortgagees: if money was advanced on a joint account, one of several mortgagees may sign the discharge.
• Deceased joint holder: if the mortgage is held in joint tenancy, the surviving holders may sign after one dies.
• Debt paid: a judge can certify that the secured money has been paid, and the Registrar can then discharge the mortgage.
• Debt out of time: a judge can certify that the right to recover the money has been extinguished or is unenforceable under limitations legislation.

Which of these routes fits depends on your situation, so it is worth confirming with a lawyer before you decide how to proceed.

Other times a discharge happens, and what to do next

A discharge is also needed when you switch lenders, since the old mortgage is discharged and the new lender is added to title, and when you sell the property. Once the discharge is entered on title, the land stops being liable for the principal sum or the part discharged.

After the filing is accepted, the document is registered and given a registration number, and the submitter receives a registration notice. Land Titles has not given a general processing time on its page, so ask when you submit.

• Keep your final payment record and the lender's paid-in-full letter.
• Write to the lender requesting the discharge if it has not arrived.
• Check your certificate of title afterward to confirm the mortgage is gone.
• Speak with a lawyer if the lender will not respond or no longer exists.

Frequently asked questions