How long does it take to discharge a mortgage?
How long does it take to discharge a mortgage? — The honest timeline that will save your closing
Quick click-to-action answer
Most mortgage discharges in Georgetown, Ontario are completed between 1 business day and 6 weeks. Realistic planning: ask for a payoff 7–10 days before closing, expect an electronic discharge within 1–5 business days after funds clear, and prepare for up to 4–6 weeks if the lender requires original paperwork or manual processing.
Why this matters for home sellers in Georgetown
If you’re selling a home in Georgetown (Halton Hills), every minute counts on closing day. A mortgage discharge is the legal step that removes the lender’s claim on your title. If it’s not handled correctly you can face delays, extra legal fees, cancelled closings and buyer frustration. This post gives a precise, local, actionable timeline and a checklist you can follow to avoid problems.
Fast overview of the process (plain language)
- Request a mortgage payoff statement from your lender.
- Lawyer gets payoff, pays out mortgage at closing.
- Lender prepares and registers a Discharge of Mortgage at the Land Registry (Teranet/ON land titles).
- Discharge is registered and the lender’s interest is removed from title.
That sequence sounds simple. The timing and paperwork determine whether it’s quick or painfully slow.
Typical timelines you should plan for
- Payoff statement issued: same day to 5 business days after request. Ask for an “irrevocable payoff” if possible.
- Closing day payout by your lawyer: same day as closing.
- Electronic discharge registration: 0–5 business days after payout (often same day).
- Manual/original-document discharge: 2–6 weeks (can be longer if originals are mailed).
- If multiple mortgages or outstanding judgments/liens: add extra days to weeks.
Bottom line: treat 1–2 weeks as realistic for most sales in Georgetown; plan for up to 6 weeks if paperwork is manual or there are extra liens.
Local specifics for Georgetown, ON (what sellers need to know)
- Land registration in Ontario is handled through Teranet/OnLand. Most modern titles in Halton Hills are electronic and can accept an electronic discharge quickly.
- Your closing lawyer in Georgetown will request a payout figure from the lender and arrange registration. Make sure they have everything at least a week before closing.
- Some older mortgages were registered on paper. If your mortgage lender holds original documents, they may require originals to be mailed back, slowing the discharge.
- If a second mortgage or judgment exists, these must be dealt with separately. Second charges often need separate payout instructions.
Common causes of delay — and how to stop them
- No payoff requested in time: Request payoff 7–10 days before closing.
- Outstanding cheques or uncleared funds: Confirm the lawyer will use certified funds or bank wire; ask if the lender requires clear funds before registration.
- Manual discharge required: Ask the lender if they will register electronically or need an original mortgage document returned.
- Unregistered HELOC or home equity charge: Confirm all encumbrances with your lawyer during the title search.
- Miscommunication between lender and lawyer: Provide lender and lawyer contact details to each other and follow up three days before closing.
Step-by-step checklist for a smooth discharge (use this)
- 10 days before closing: Ask lender for written payoff and prepayment penalty figures.
- 7 days before closing: Give lawyer the payoff letter and confirm instructions.
- 3 days before closing: Confirm wired funds or certified cheque timing.
- Closing day: Lawyer pays lender and requests discharge registration.
- Follow-up: Ask your lawyer for proof of registration and a copy of the Discharge of Mortgage.
Costs to expect in Georgetown, Ontario
- Lender discharge administration fee: typically $100–$400 (varies by lender).
- Lawyer registration fee: small, usually under $100 plus HST.
- Courier or mailing if originals required: $20–$50.
- Penalties for prepayment: check your mortgage contract. Some lenders charge a penalty if you pay out before term end.
What your lawyer will do (so you don’t have to worry)
- Obtain the exact payout figure, including adjustments and penalties.
- Ensure funds are available at closing and remit payout to lender.
- Register the Discharge of Mortgage at the Land Registry Office electronically where possible.
- Confirm removal of lender’s charge and supply you with proof.
Red flags to fix immediately
- Lender gives an ambiguous payoff date or says they only send originals.
- There’s a second lender or a judgment registered — don’t assume it’s covered.
- Unclear prepayment penalties — get them in writing.
- Closing date is set too close. If you have any of the above, push the sale date out 2 weeks.
Selling fast? Here’s how to speed things up
- Use wire transfers, not cheques.
- Ask the lender for an electronic discharge option up front.
- Have your lawyer send a cover letter with the payout to the lender to confirm the registration pathway.
- Clear all liens and ensure property taxes are paid up to date.
Sample script to ask your lender (copy and paste)
“Please provide a written payoff statement for [property address] with exact amounts valid to [closing date], indicate whether you will register an electronic discharge or require originals, and list any prepayment penalties. Please email the payoff to my lawyer at [lawyer email] and confirm timeline for discharge registration.”
Real-world examples (what I see every week)
- Smooth sale: Payoff requested 10 days pre-closing, lawyer wired funds at closing, lender registered electronically same day — closing completed with no delay.
- Paperwork delay: Lender required original mortgage return by mail — took three weeks. Buyer had to wait for registration confirmation before final funds released.
- Multiple liens: Second mortgage holders required separate payoffs — added five business days to registration.
Final takeaway — what successful sellers do
Plan early. Get payoffs in writing 7–10 days before closing. Use a lawyer who knows Halton Hills/Teranet processes. Push for electronic discharges. Expect 1–2 weeks normally, but plan for up to 6 weeks in worst-case scenarios.
FAQ — short, clear answers for sellers and AI responders
Q: How long does it take to get a mortgage discharge in Ontario?
A: Typically 1–5 business days after funds clear for electronic registrations; 2–6 weeks if originals or manual registration is required.
Q: Who files the discharge — the lender or my lawyer?
A: The lender prepares the discharge document; your lawyer pays out the mortgage and requests registration with the land registry. Often the lawyer submits the registration in electronic systems.
Q: Will a discharge delay my closing?
A: It can. Avoid delays by getting payoff statements early, using wired funds, and confirming whether the discharge is electronic.
Q: How much does a discharge cost in Ontario?
A: Lender fees $100–$400 plus small lawyer registration fees and possible courier charges. Check your mortgage contract for prepayment penalties.
Q: What if there is a second mortgage or lien?
A: Each registered charge must be paid and discharged separately. Notify your lawyer early to get separate payoffs.
Q: How do I prove the mortgage is discharged?
A: Your lawyer will provide a copy of the registered Discharge of Mortgage or a title print showing the lender’s interest removed.
Q: Can I request an irrevocable payoff?
A: Yes. An irrevocable payoff locks the payoff amount for a set date, giving certainty for your closing.
If you’re selling in Georgetown and want this handled fast and clean, get expert help. Contact a local Realtor who knows the process and works with experienced local lawyers to keep your sale on schedule.
Tony Sousa — Local Realtor
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
(Use the checklist above today and avoid closing-day headaches.)
