How Long Does a Mortgage Discharge Take After Closing in Ontario?

You sold your home, the sale closed, and your lawyer paid out your old mortgage. Now you want to know when that mortgage actually disappears from title, and whether you need to do anything to make it happen.

The short answer is that the payout happens on closing, but the paperwork that removes the mortgage from the property record can take longer and depends on the lender and on registration rules. This article explains who does what, what can slow things down, and what to do if the mortgage still shows up later.

Paying out a mortgage and discharging it are two steps

When you sell, your mortgage is normally paid from the sale proceeds on closing. That is the payout. The discharge is the separate step where the lender's mortgage is removed from the property's title record. Until the discharge is registered, the old mortgage can still appear when someone searches the property.

For a seller, the mortgage payout is one of the usual costs of selling, along with commission, HST on commission, legal fees and disbursements, and adjustments. Your lawyer builds the payout into the closing figures so the lender is paid and the buyer receives the home free of your mortgage.

Exactly how long the discharge takes after closing depends on the lender's own process and on how your lawyer arranges it. Your lawyer can tell you what to expect for your specific lender.

Who registers the discharge and when it can happen

Who arranges the payout and the discharge, and how, depends on your sale and your lender, so it is worth confirming with your lawyer at the start. You do not normally need to register anything yourself, but ask to be told once it is done.

Timing also depends on the registry calendar. Under Ontario's electronic land registration system, documents are registered Monday to Friday from 8:30 a.m. to 5:00 p.m. local time, and registration is not allowed on statutory or government holidays. That bulletin dates from 2012, so the current hours should be confirmed on Teraview. Searches, by contrast, can be done outside those hours, including weekends and holidays.

Registration is also generally unavailable on dates in Teraview's published holiday schedule. A closing or discharge near a long weekend may therefore take longer than you expect, because registration is not available on holidays.

• The lender must process the payout and provide the discharge in the form needed.
• Your lawyer must submit the discharge for registration on a business day.
• Holidays and weekends add calendar days before registration is possible.
• Mistakes in names, amounts or account details can add delay.

Penalties and notice that affect your payout

A common surprise is the cost of paying the mortgage off early. Paying off an entire mortgage early, including because you sell the home, can trigger a prepayment penalty. The penalty is usually the higher of three months' interest on what you still owe or the interest rate differential, often called the IRD. Lenders usually use the IRD when your rate is higher than current rates and you signed less than five years ago.

As an example, on $200,000 at 6% with 36 months left and a posted rate of 4%, three months' interest is $3,000 while the IRD is $12,000, so the penalty is $12,000, plus possibly an administration fee. Porting the mortgage to a new home is only an option if you are buying another home, and you should ask your lender about it.

The Interest Act rule does not apply to mortgages given by corporations and prescribed entities. Which rule or contract term governs your payout depends on your mortgage, so ask your lawyer before you sign the sale agreement.

What to do if the old mortgage still shows on title

If you or a buyer's lawyer later notices the mortgage on a search, do not assume something went wrong. It may simply be a timing gap. Start by asking the lawyer who acted on your sale to confirm whether the discharge has been registered and, if not, when it is expected.

• Contact your sale lawyer and ask for the status of the discharge.
• Ask whether the lender has confirmed the payout was received.
• Request a current copy of the parcel register to see what is registered.
• Keep your closing statement and any payout confirmation from the lender.
• If the lender is slow to respond, ask your lawyer to follow up in writing.

A copy of the parcel register including the first page costs $36.50 in total, and each additional page costs $2.56, based on fees effective November 3, 2025. Fees can change, so check the current schedule.

When the lender cannot be found or will not cooperate

In unusual cases, a lender no longer exists, has merged, or cannot be located. Under the Mortgages Act, if a mortgagee cannot be found or a proper discharge cannot be obtained without undue delay, the court may permit payment into court and order the mortgage discharged. Registering that order has the same effect as registering a certificate of discharge signed by the mortgagee.

This is a court process and is not needed for ordinary delays. If you are in this position, a lawyer can explain whether it fits your facts.

What to do next

• Ask your lawyer in writing whether the discharge has been registered.
• Keep the payout statement and closing documents together.
• Order a parcel register copy if you want to see the current record.
• Raise any delay early, especially if you are buying again and a lender wants clear title.
• Speak with a lawyer if the lender cannot be reached or refuses to discharge.

Frequently asked questions